Washington, D.C – Rosa Whitaker, founder and CEO of The Whitaker Group, participated in an October 8th panel discussion on accelerating intra-African trade, hosted by the World Bank and chaired by Obiageli Ezekwesili, World Bank Vice President for Africa. The seminar was held concurrently with the World Bank’s and the International Monetary Fund’s annual meetings.
Panel participants, who included Ms. Whitaker, alongside the Honorable Maxwell Mkwezalamba, African Union Commissioner for Economic Affairs; Mr. William Egbe, President of Coco Cola in South Africa; Pravin Gordhan, South African Minister of Finance; Dr. Paul Collier, Professor of Economics and Director for the Centre for the Study of African Economies at The University of Oxford; and Mr. Tony Elumelu, Chairman of Heirs Holdings Limited and former Chief Executive of the United Bank for Africa, focused on a complex, but vital question, “Can Africa Trade With Africa?”
Intra-African trade amounts to only 10% of the region’s total trade, compared with 40% for intra-American trade and 60% for intra-European trade. The panel assessed independent and collaborative roles the public and private sector can play in driving a regional trade agenda. Ms. Whitaker, the architect of the U.S. African Growth and Opportunity Act (AGOA), offered invaluable insight into how AGOA’s successes might be extended to promote intra-African trade gains.
AGOA has contributed to improved business and regulatory environments on the continent, with the modernization of Africa’s labor laws as a reform dividend. AGOA has also encouraged regional trade, most notably through its 35% rule of origin clause, which allows inputs from other African countries, encouraging investment in markets that would otherwise lack the inputs to produce finished goods.
Ms. Whitaker advocated for the permanent establishment of AGOA, which is currently set to expire in 2012. She proposed a series of innovative tax incentives to reward those who invest in Africa and those who source products from Africa. These measures, part of the AGOA Action Committee’s Enterprise for Development Proposal, would use the U.S. tax code, which has historically been used a transformative political tool, to spur economic development.
Despite the crucial role Agoa plays in especially the South African motor vehicle industry – the country’s major manufacturing sector – Deputy President Kgalema Motlanthe made no mention of the legislation in his speeches in Washington during a recent visit to the US.
“The U.S. needs to play catch up in the race for a foothold in Africa.”
