Here we AGOA Again

This week, representatives from over 39 African countries will gather in Washington DC. They will be here to deliberate, as they annually do, on the Africa Growth Opportunities Act – AGOA, the U.S.’s most portentous program for Africa. Like they have done for the past 10 or so years that this legislation has been in existence, many will question the viability of the program. Others will go out of their way to state that AGOA is not benefitting the African countries. Critics will continue to be vituperative of the overall aspects of capitalism and globalism and certain unfair advantage presented by China and every other aggressive country that seems to capture the American market.

But despite its chinks and unclear aspects, AGOA had the potential to make some dramatic changes in Africa. It had the opportunity to create jobs in Africa. In Uganda, Kenya and Lesotho – and also other countries – many young women [especially] and men were able to work on apparel and textiles bound for the American consumer. Simply, Africa was given an excellent avenue to contribute to the world economy just like happened to a post World War II Japan. Sub – Saharan Africa could have become another Singapore or even another Indonesia, Malaysia and India. Unfortunately, things did not go as well as they ought to have gone. It turns out that many of the African countries needed more provisions, more help and even more shoring up to be considered part of the well oiled supply chains in the global arena

Under no circumstances does this paper believe that AGOA has run its course. Far from that, actually! AGOA is now in an excellent position to be enhanced, as those in Washington, DC like to say. The program comes up for renewal or disbandment in 2015 and the two or so years before this happens could make or break trade between the U.S. and Africa. It would, thus, behoove all those AGOA beneficiaries to do more than they are currently doing right now. On the table is a piece of legislation that could, over two years, make its way through the House and the Senate in a fashion that benefits Africans on the continent but also allow American businessmen to directly invest in new spheres of influence; and allow the African Diaspora to contribute more to their continent. Yes – an enhanced AGOA is in the works and the next two years will either make or break this affair the American people have with the Africans.

However, between now and then, there are the next few months: The African countries have not worked in tandem in the past. Many conspiracy theorists will make the case that certain ‘evil’ interests are working to keep the Africans apart and ensuring that unification of the continent is not on the books. In our estimation, the only significant evidence of the ‘divide and conquer’ insinuation rests in the European Union’s unfair arrangements with the individual countries. Many in America want these provisions to stop so that African countries can negotiate as a bloc. Nonetheless, one of the best ways of dealing with the European Union and also the U.S. or other entities like China, India, Brazil and Russia is a unified position between the African countries. Regional groups like the East African Community and COMESA or SADC are much better ways to deal with more powerful entities than individual countries like Rwanda, Burundi, Uganda or even Kenya and Tanzania. Again, because these more than 30 countries are meeting under the aegis of the U.S. government, they could collaborate and come up with a plan to address a simple technicality like AGOA legislation.

With an insider’s perspective, the solution to getting AGOA to the next level sometimes gets lost in the bitter partisan rancor that exists between the Republicans and Democrats at every level of government. However, there is no doubt that the Africans have not even tried to put their best collective foot forward. They have not allowed themselves the opportunity to collaborate to win. That might change in the next few months:
Ethiopia assumes Chairmanship of the AGOA Forum from Zambia. For the next two years, the country that hosted the OAU [the African Union] and a myriad of pan African institutions will be responsible for driving the agenda towards an enhanced AGOA. That country – Ethiopia – has benefitted from AGOA. Whether this has been significant a contribution to that economy is another story. What remains to be seen is how the Land of the Queen of Sheba will weld its hammer. Will it call for collaboration between its African brothers and sisters? Will it learn from the mistakes of the past and actually go about bringing real progress to its people?

One can only hope for the best. History shows that African countries in the same position – with the exception of Mauritius – have not actually milked this awesome opportunity. On the table is a world where India is currently mired in political and economic slowdowns. Brazil is not doing as well as it ought. China is not as red hot as it was three years ago. Russia is not the land of its fathers. And Africa remains green. Now, this green needs to turned into a fully functional dollar from both the American consumer and the American investor. If the Americans delve into Africa, the rest of the world will follow and soon, those young faces with flies and extended bellies could be things of the past.

Dennis Matanda, Editor – editor@thehabarinetwork.com