Ethiopia experienced the largest increase exports between October 2017 and September 2018, registering a quantum jump of 62% over the same period a year ago. There is a prospect of Ethiopia emerging as the second largest exporter under the African Growth and Opportunity Act, popularly known as AGOA. Ethiopia exported US$ 134 million during the period under review.
The African Growth and Opportunity Act (AGOA) is a United States Trade Act, enacted on 18 May 2000 as Public Law 106 of the 200th Congress. It is since been renewed to 2025. The legislation significantly enhances market access to the US for qualifying Sub-Saharan African (SSA) countries. The criteria for qualification for AGOA preferences is based on a set of conditions, such as improvement in the rule of law, human rights, and respect for core labor standards.
Aided by AGOA, East African countries clocked over one billion dollar exports to the US between October 2017 and September 2018, which is a 17% increase over the same period on a year on year basis and close to 42% since the implementation of AGOA. With US$ 454 million exports to the US, Kenya topped the list in exports under the scheme in Eastern Africa. All other countries in the region have witnessed export growth barring Mauritius, which faced increased competition from Madagascar since that country has also become eligible under AGOA. Burundi, while remained ineligible under AGOA for preferential access to the US, has become eligible under Generalized System of Preferences. However, its exports to the US market has dropped.
Apparel continues to dominate in the items of exports to the US, accounting for 84.4% of the exports during the period under review. Till date, under the AGOA, which is also known as USAID Hub trade and investment, African countries have exported US$ 4.07 billion worth of goods. Of that US$ 491.5 million exports have originated from the firms supported by the USAID Hub trade. Significantly, some of the countries are developing their own strategies for taking advantage of the AGOA. These include Rwanda, Uganda, Tanzania, and Kenya.
