US introduces new trade initiative for Africa

US introduces new trade initiative for Africa

The US has introduced a new trade capacity building initiative, “the African Competitiveness and Trade Expansion Initiative (ACTE),” to put significant resources behind its commitment to expand US-African trade and intra-African trade.

The US Trade Representative, Amb. Ron Kirk, who made this known in Lusaka on Thursday, said the initiative would provide 120 million dollars over the next four years to intensify and focus more sharply, the work of USAID’s African trade hubs.

USAID efforts

USAID’s African trade hubs are in Ghana, Senegal, Botswana and Kenya.

They help to make African producers become more competitive by tackling cross-cutting problems in finance, transport, governance, business environment and telecommunications.

They work with producers and firms ready to export in industries ranging from food to flowers to footwear.

Kirk said in 2010, the trade hubs facilitated more than 100 million dollars in African goods exports to the world, including 56 million dollars to the US and assisted 1,200 African firms interested in developing or expanding their capacity to export.

ACTE objectives

Coming on the heels of the African Growth and Opportunity Act (AGOA), which the US introduced in 2000 to facilitate trade with sub-Sahara Africa, ACTE seeks to improve Africa’s capacity to produce and export competitive, value-added products and to address supply-side constrains that impeded African trade.

In his remarks at the opening of the 10th AGOA ministerial forum, Kirk said America’s four-year investment under ACTE would help to drive economic development in African countries and enhance trade opportunities among Africans and Americans.

“The United States will continue to support countries that take concrete steps because we know that when we are focused on ambitious goals, when we demand mutual accountability for measurable outcomes and when we marshal resources in the right ways, we can do big things together,’’ he said.

Impact made in Africa

He said that US hoped to add South Sudan to the list of 37 African countries eligible to trade with it under AGOA, once it achieved its independence and met the benchmark criteria for inclusion.

AGOA, he said, had made it possible for Ethiopia’s factory workers to earn a living supported by exports of apparel and footwear to the US; made it possible for Ghanaian craftsmen to sell expertly-carved stools, bookends and statues to US.

Customers seeking the perfect piece at interior design and to African art shops.

Kirk added that AGOA had made it possible for HIV-positive single mothers in Swaziland to export specialty foods to the US, giving them good jobs and hope for their families.

“Last year, non-oil imports under AGOA totaled four billion dollars, up 18 per cent from 2009 and included value-added products such as apparel, footwear, processed agricultural products and manufactured goods,’’ he said.
Improving business ties

He cautioned African firms and entrepreneurs planning to export goods to the US that private sector leaders wanted a high degree of transparency, accountability and predictability when making trade and investment decisions.

“That is why the US is working with African governments to improve the business climate in their countries,’’ he stressed.

Investors focus

He said that just as pioneering African entrepreneurs were seeking to sell more to international customers, there were many American businesses, both small and large looking forward to Africa as the next major frontier market.

“And as African economies develop, American producers should be able to find additional African customers more quickly,’’ Kirk noted.

NAN/Williams