Business Times Africa Vol. 8, No.6 | Page 16

OPINION

Making " Made in Africa " Last

By Moono Mupotola
Africa now accounts for just 1 % of America ’ s $ 350 billion textile and apparel market
MOONO MUPOTOLA Moono Mupotola is the director of the NEPAD Regional Integration and Trade Department at the African Development Bank .
Moono Mupotola ( Project Syndicate ) – If you ’ re ever shopping for a pair of jeans in an American mall , check the label . If it was made in , say , Lesotho – a tiny mountainous country surrounded by South Africa , with a population of around two million – you probably have the African Growth and Opportunity Act ( AGOA ) to thank for it .
The AGOA , which was implemented in 2000 , allows more than 6,400 products from eligible sub-Saharan African countries to enter the United States market duty-free . According to Lesotho ’ s National AGOA Strategy , the country ’ s annual garment exports to the US increased from about $ 129 million in 2001 to $ 330 million in 2015 , representing 80 % of total external demand for the country ’ s textiles and garments . With 44,000 employees , Lesotho ’ s garment industry is now the country ’ s largest private-sector employer . The AGOA has underpinned other “ Made in Africa ” success stories , too . Some may complain that the AGOA favors petroleum products , but the figures speak for themselves . According to the 2016 AGOA report , released by the Office of the US Trade Representative , nonoil exports to the US under AGOA nearly tripled , from $ 1.4 billion in 2001 to $ 4.1 billion in 2015 . Automobiles from South Africa and apparel from Kenya , Lesotho , Mauritius , and Swaziland were the leading exports .
The AGOA has also been criticized
for excluding some agricultural products , for which Africans have a comparative advantage . The products that are not excluded face complex health and safety regulations , further hampering Africans ’ ability to export agricultural products to the US . But bold , export-ready African countries have
14 Business Times Africa | 2016