Read more
Agoa ‘important and instrumental tool’ in improving SA economy
A call was made for the Agoa trade agreement to be extended by another 20 years.
President Cyril Ramaphosa. Picture: GCIS
President Cyril Ramaphosa has stressed the value of Agoa extends beyond trade statistics, saying it can make an important contribution to the transformation of African countries.
The 20th Agoa Forum wrapped on Sunday at Nasrec in Johannesburg where a call was made for the trade agreement to be extended by another 20 years.
In his weekly newsletter, “From the Desk of the President,” Ramphosa said Agoa is an important and instrumental tool in improving the country’s economy and would allow for further development in the value chains across different countries.
Extension
“If extended beyond 2025 for a sufficiently long period, and if used more effectively, Agoa can contribute significantly to the further diversification of African economies. It could enable countries to produce a wider range of products using the abundant minerals, metals and agricultural produce.”
“Another important element of Agoa is that it has a capacity building and technical assistance component that supports African countries in meeting the requirements for accessing the US market,” Ramaphosa said.
ALSO READ: Plea for Agoa patience: Tread carefully, Africa…
Ramaphosa added that Africa has been advocating for the integration of continental economies for a long time.
“Agoa encourages regional integration among African countries. To fully benefit from Agoa, countries are finding that it is far better to work together to increase production capacities, harmonise standards and develop regional value chains.”
Benefits
The president said the benefits of Agoa extends beyond the African continent.
“As we learnt from the Covid pandemic, the global economy stands to benefit from more diverse value chains that are not dependent on just a few sites of production. South Africa greatly values its bilateral relationship with the US, one of our largest trading partners and with whom we enjoy relations that extend well beyond trade.
“We look forward to further engagement around the reauthorisation of Agoa at a time when its benefits continue to support our quest for economic growth, job creation and inclusive, sustainable development,” said Ramaphosa.
ALSO READ: Beware: debt is often no more than a click away
