Washington – President Jacob Zuma on Monday asked for the support of American business to ensure that South Africa does not get excluded from AGOA, the preferential trade programme that was enacted in 2000 to boost and diversify African trade with the US.
He said for Africa to continue to prosper, South Africa had to demonstrate strong growth.
President Zuma's speech to the American Chamber of Commerce in Washington comes as US lawmakers prepare to vote on the extension of the African Growth Opportunities Act (AGOA), whose current term comes to an end next year.
There has been intense lobbying by some in the US to remove South Africa from the list of countries that benefit from the AGOA programme if the legislation is extended next year.
US Trade Representative Michael Froman hosted an AGOA forum yesterday at the World Bank to discuss the scheme and the US-Africa Leaders’ Summit on Wednesday is expected to address the topic of AGOA’s extension.
But in a speech made to a top American business audience on Monday, President Zuma said it would be a mistake to exclude South Africa from the programme.
“AGOA has transformed the economic landscape for many African countries and South Africa. It is the cornerstone of trade relations between the US and sub-Saharan Africa,” President Zuma told a US-South Africa Business Investment Forum organised by the US Chamber of Commerce.
He said the programme had “greatly enhanced” trade between the US and South Africa. Almost 95% of South African exports receive preferential treatment under AGOA.
Monday’s event was attended by top business leaders and guests including South Africa’s mining magnate Patrice Motsepe, Chief Executive Officer and Director of Pamodzi Investment Holdings, Ndaba Ntsele and Kuseni Dlamini, chairperson of Massmart.
“We advocate the renewal of AGOA for another 15 years, with the inclusion of South Africa. We strongly believe that by endorsing the extension of AGOA, the US will be promoting African integration, industrialisation and infrastructure development.
“We look forward to positive discussions at the AGOA Ministerial forum today and in other forums this week,” said President Zuma.
He said South Africa’s economic growth was linked to that of Africa as a whole and that it would be wrong to exclude the country from the AGOA initiative.
“That is why we put great emphasis in developing not only our country’s infrastructure, but that of the African continent too.”
US Chamber of Commerce President Thomas Donohue said South Africa had undergone massive transformation over the past 20 years and that the US was keen to continue to invest in Africa’s biggest economy.
Last year, US exports to South Africa totalled about US$7.3 billion, while South African exports to the US were around $8.5 billion.
“Infrastructure investment is on the rise, manufacturing is growing, tourism is booming. South Africa remains our commercial and strategic partner,” Donohue said.
This was echoed by Business Unity South Africa President Jabu Mabuza, who suggested that despite the recent labour unrest and strikes in the mining sector, business in South Africa still considered the country’s economy as stable.
South Africa this year saw one of its longest strikes in history when platinum workers downed tools for five months, demanding a R12 500 minimum wage.
Mabuza, who rose from humble beginnings as a taxi driver to run one of the largest hotel and leisure groups in the southern hemisphere, said South Africa remains an ideal place to do business in Africa, but that there was a need to “fix” the relationship between employers and employees.
“Business needs to rethink the way it relates to employees. We need to rebuild trust and engage with our employees directly and make them understand the costs we face and the choices that have to be made,” said Mabuza. – SAnews.gov.za
