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Recent Articles
Published by: allAfrica.com
31 August 2010
OPINION
I find it troubling that declaring Agoa’s achievements a “disappointment” has gained currency in so many policy circles. It leverages a pernicious line of thinking, one that belittles the significant achievements African countries have made over the last 10 years and perceives polices that support African economic growth as zero-sum. This thinking threatens to undermine what I believe is one of the United States’ most successful and cost-effective development assistance programs ever.
I, for one, am not disappointed in the progress made under Agoa over the past 10 years. Exports from Agoa-eligible countries grew over 300% from $21.5 billion in 2000 to $86.1 billion in 2008. Of that, $28 billion was in non-oil exports – automobiles from South Africa, apparel from Lesotho, cut flowers from Kenya, jams and jellies from Swaziland. None of these counted for much in 2000, but now, thanks to Agoa, they and a host of other nascent industries are beginning to make a significant contribution to Africa’s prosperity.
Most African countries are highly dependent on the exports of a few primary commodities. Historically this dependency has rendered them extremely vulnerable to volatility in world prices, but increasingly erratic weather patterns caused by climate change are exacerbating the problem.
A good example is the recent surge in wheat prices caused by the drought in Russia, the world’s largest wheat exporter. The price rise – as much as 92% since the beginning of June – is the result not just of a Russian ban on wheat exports, but also speculators’ purchase of as much as 400% of available supplies. While US consumers may see a modest rise in the price of wheat-based products, consumers are protected from sharper increases because US farmers sold their wheat in advance of the harvest at a guaranteed price considerably lower than the current price. A price spike in Africa, which does not have access to global exchanges and similar risk-mitigating tools, could generate a food crisis similar to the one experienced in 2008 when wheat futures reached record prices.
Climate change is expected to disproportionately affect Africa’s farmers because poverty and underdevelopment make it harder for them to adapt quickly to changing weather patterns. These challenges are compounded by the fact that unlike American or European farmers, Africa’s farmers have only limited access to effective commodities exchanges, which can provide the kinds of contracts necessary to offset risks and help plan for the future. These limitations expose farmers to unreasonable risk, severely hampering their competitiveness in the global market and rendering Africa highly vulnerable to food shortages.
Excerpted from West Africa Trade Hub’s News publication, Tradewinds:
Tradewinds: It’s been 10 years since AGOA came into effect. What’s your overall assessment of its impact? In concrete terms, what best demonstrates its success?
Rosa Whitaker: I think it’s been a phenomenal success. Has it been a panacea for everything in Africa? No, it wasn’t designed to do that. But if you look at the return on the investment, it’s been amazing. It costs the American taxpayer very little – about $2 million a year. In under a decade, exports from AGOA-eligible countries grew over 300% from $21.5 billion in 2000 to $86.1 billion in 2008, though exports fell to $46.9 billion in 2009 because of the drop in oil exports during the recession AGOA has created well over 300,000 jobs in Africa, particularly in sectors like apparel that benefit women. Some people would say that that’s primarily oil but there’s no trade initiative that can change the paradigm that oil is the major export from Africa in 10 years. Non-oil exports since 2007 have increased to $28 billion.
“How does China’s approach differ from that of [Africa's] other development partners?”
So sets out the evaluative frame of Dr. Sharon T. Freeman’s new book, “China, Africa, and the African Diaspora: Perspectives.” The book features essays from stakeholders living and working in Africa that discuss the impact of Africa’s economic partnership with the Chinese, as well as how China is fulfilling its “guiding principles” for engagement with Africa, including “sincerity, equality and mutual benefit, solidarity and common development.”
African heads of state recently met for the 15th African Union (AU) Summit in Kampala, Uganda. One major theme of this year’s summit—maternal health— is both timely and contentious. New research on maternal death figures is stirring debate globally and the topic will feature prominently at September’s United Nations Millennium Development Goals Summit.
At this week’s AU Summit in Kampala, the Heads of State spoke about maternal and child health during the plenary session, reflecting the theme of the 15th Summit, which was “Maternal, Infant and Child Health and Development in Africa.” I was particularly impressed by Ethiopian Prime Minister Meles Zenawi’s comments on the subject. He began by urging partners to put “their money where their mouth is” and expand resources to reach the health-related Millennium Development Goals. He pointed out that there is an unfair distribution of limited health resources, and that women get “the short end of the stick.” He suggested that in order to improve maternal and child health, countries should focus on strengthening primary health systems and sponsoring interventions with a “big bang for the buck.”Â
Par Aziza Albou Traoré
Jeune Afrique
19 Juillet 2010
Les États-Unis souhaitent Ă©tendre les franchises de frais douaniers aux pays pauvres non africains. Une lourde menace pour l’Agoa et fatalement pour les Ă©conomies du continent.
C’est un scénario catastrophe pour les économies africaines qui est à l’étude pour le dixième anniversaire de l’African Growth and Opportunity Act (loi sur la croissance et les possibilités économiques en Afrique, Agoa). En novembre 2009, l’un des pères fondateurs de l’Agoa, le représentant démocrate Jim McDermott, a présenté au Congrès américain un projet de loi proposant d’intégrer l’Agoa au système préférentiel de l’Organisation mondiale du commerce, le Generalized System of Preferences (GSP), sans restriction de quotas, et d’en étendre les bénéfices aux pays pauvres non africains.
Tadias Magazine
Events News
Photos by Derege Zewdie
Published: Sunday, July 11, 2010
New York (Tadias) – While Spain and the Netherlands battled for the 2010 World Cup final on Sunday afternoon, Tadias caught part of the 5th Annual Ethiopian American Business Forum & Exhibition, which took place in Washington, D.C. this weekend.
We are told a lot more people attended the opening day activities on Saturday where featured speakers included Karl Wycoff, Deputy Assistant Secretary of State for Africa; Mimi Alemayehou, Executive Vice President of Overseas Private Investment Corporation; Ms. Rosa Whitaker, CEO of the Whitaker Group and the principal architect of AGOA; and Ato Ermias Amelga, CEO of Access Capital and Founder and Board Chairman of Zemen Bank S.C.
The conference was a collaborative event between U.S. government agencies and private companies and was developed to promote trade between the United States and Ethiopia by fostering new business relationships between Diaspora investors and entrepreneurs operating in the African nation.
The conference was organized by The Ethiopian American in association with USAID’s “Africa Growth & Opportunities Act+” Program – VEGA AGOA Plus, a U.S. taxpayer-funded project, which offers tangible incentives for African countries to continue their efforts to open their economies and build free markets.
The exhibition showcased several ventures mostly from Ethiopia. It took place at Four Points by Sheraton in Washington, D.C.
Link to the original, including photos, here
By Success K. Uchime
June 17, 2010
Allvoices
The African Growth and Opportunity Act (AGOA) is said to be creating more than 300,000 jobs in Africa and also brings in about $300 billion in export earnings and nearly $30 billion in non-oil exports to Africa at a minimal cost to United State (US) taxpayers.
The Chair of the AGOA Action Committee and President, the Whitaker Group, the premier United State (US’s) trade consultancy facilitating trade between the US and Africa, Ms. Rosa Whitaker, who stated this said that AGOA has been very successful in the past decade in its operations.
June 13, 2010
VoxAfrica TV
Rosa Whitaker was on VoxAfrica TV at 8:00 AM EST this Sunday, June 13, discussing the success of AGOA and prospects for a similar trade preference program for Africa in the UK. She was interviewed along with a panel on the popular show “Shoot the Messenger” by award-winning journalist Henry Bonsu. Ms. Whitaker’s interview runs from 26:38 to 35:21.
On a recent trip to Nairobi, I was thrilled to have the opportunity to meet with both Equity Bank and M-PESA at Safaricom. M-PESA and Equity Bank are prime examples of companies involved in a new trend in innovation. A recent Economist report on innovation in emerging markets explains that “many of the most important innovations…are aimed at the middle or the bottom of the income pyramid.”
By Meg Dallett
One of the biggest problems with aid effectiveness is that it has often been planned and distributed according to what donors think the developing world needs, rather than what developing nations say they need. This has led to, at the largest level, huge amounts of wasted funds, and at the smallest level, the recent misconceived project to send a million t-shirts to Africa. Smart aid requires local ownership, not just in implementing projects but also in deciding what is most needed in the first place.
By Isaiah Schulze
In discussions of African development issues, the subject of “brain drain” is often brought up. The basic thesis is that by immigrating to developed countries, highly talented Africans are depriving their home nations of the intellectual assets needed for development. Rich countries gain unfairly from this phenomenon as they retain the academic, political, and economic contributions of these skilled individuals, while African countries languish from a shortage of good ideas.
GhanaWeb
May 15, 2010
Capitol Hill, Washington DC
US Trade Representative Ron Kirk, Congressional Leaders and African Ambassadors to the United States celebrated 10th anniversary of the passing of the African Growth and Opportunity Act (AGOA), On Wednesday; May 12, 2010. The ceremony occurred in Room 1100; Longworth House Office Building, Capitol Hill.
More African countries than ever have entered the international financial system through the international bond market in 2009/10. Whereas before only countries like South Africa had credit ratings sufficient to enter, now places like Tanzania and Togo are considering how best to enter.
Fibre2Fashion
May 7, 2010
The Saharan region of Africa is still struggling to get a strong foot hold in the global arena. But with the aid of the African Growth and Opportunity Act (AGOA), opportunities would be showing a silver lining.
April 26, 2010
Washington, DC
On April 26, 2010, The Whitaker Group and the Hudson Institute’s Center for Global Prosperity convened a diverse group of global development stakeholders to discuss new strategies and initiatives to maximize capital flows to Africa at a lunch event sponsored by The Western Union Company. African Finance Ministers, Ambassadors, US business and policy leaders, multilateral development bank officials and heads of emerging market funds gathered together to share best practices and innovative initiatives.
By Abdoulaye Agne
Walf Fadjri
May 4, 2010
Cela fait déjà une décennie que la loi américaine intitulée la Croissance et les possibilités en Afrique (Agoa) favorise les relations commerciales entre les Etats-Unis et l’Afrique sub saharienne, en ouvrant le marché américain aux produits africains libres de droits et taxes et de quotas. Est-ce une bonne loi pour l’Afrique ? Certes oui, mais une amélioration est encore nécessaire pour une meilleure prise en charge des préoccupations de développement durable.
April 26, 2010
Washington, DC
On April 26th, The Whitaker Group and the AGOA Action Committee co-hosted a Leaders Forum with the Africa Coalition for Trade, the African-American Unity Caucus, the Africa Society of the National Summit on Africa, the Constituency for Africa, the Leon H. Sullivan Foundation, Manchester Trade, and the Corporate Council on Africa to address remaining challenges in trade-based development for Africa and a way forward for US-Africa economic policy. The coalition also unveiled a comprehensive Africa economic policy recommendation for the Obama Administration, found here.
Reussir Magazine
April 29, 2010
Dix ans après le vote de la Loi américaine sur la croissance et les possibiliés en Afrique (AGOA), ses concepteurs ont dévoilé une nouvelle politique économique et commerciale devant être présentée à l’administration du président Barack Obama et qui devrait développer davantage les relations commerciales entre l’Afrique et les Etats- Unis.