African Growth and Opportunity Act: The Private Sector and Trade: Powering African Growth

"Africa is a continent of overwhelming promise. All human beings possess the dignity and the capacity to flourish in freedom. And AGOA is helping the talented men and women of Africa to realize their natural potential for prosperity."
-Condoleezza Rice, Secretary of State, July 20, 2005, remarks at the AGOA Forum, Dakar, Senegal.

The African Growth and Opportunity Act was signed into law as part of the Trade and Development Act of 2000 on July 18, 2000 to promote economic development and expedite integrating African economies into the world trading system. AGOA provides a framework for government-to-government, private sector, and civil society to work together to build trade capacity and to expand business links. Through the cooperative efforts of governments, private sector, and the civil society, AGOA has expanded duty-free access for more than 6,400 African products to U.S. markets.

Governments Working Together

The AGOA ministerial provides a framework for ministers from all AGOA-eligible countries and the United States to discuss new policies and directions that promote mutually beneficial trade and economic development.

Private Sector Investing in Future Markets

The AGOA Private Sector Forum is dedicated to turning the promise of AGOA into reality by helping participating companies and entrepreneurs find new markets, new partners, and increased profits.

Civil Society Groups Supporting the African Growth and Opportunity Act

The AGOA Civil Society is a group of non-governmental organizations, small to medium-sized business representatives, chambers of commerce, and other groups in the United States and Africa that are interested in the successful application of AGOA for the benefit of Americans and Africans.

In 2005, AGOA exports to the U.S. totaled $38.1 billion, up 44 % from 2004. Since its implementation in 2000, the growth in AGOA-eligible countries’ total exports are impressive:

•  footwear, up 306 %; 
• toys and sportswear, up 88 %; 
• fruits and nuts, up 81%; and 
• cut flowers, up 35 %.

African Growth and Opportunity Act Successes

AGOA has been a success, increasing our two-way trade with Africa and diversifying the range of products being traded.

• Botswana’s AGOA exports to the United States increased 50 % in 2005, to a total of $30.1 million from the $20.1 million recorded in 2004.
• In December 2005, a Cameroonian firm signed a contract with a U.S. textile firm to produce 3 million workers’ uniforms.
• A Pakistani company established a spinning mill that will produce 6,000 tons of cotton yarn annually in Mauritius. The company’s decision to build the mill in Mauritius was motivated by the AGOA benefits enjoyed by Mauritius.