MALKERNS – Swaziland’s exports under the AGOA regime dropped last year by over E300 million from the previous year.

 

About E1 billion goods were exported by Swaziland to the United States of America (USA) duty free under the African Growth Opportunity Act (AGOA) in 2006.

 

At least 90 percent of the country’s exports to the USA through AGOA comprise textile and apparels.

 

USA Ambassador to Swaziland Maurice Parker said this during the Believe Begin Become Business Plan Competition prize presentation ceremony held at House on Fire about a week ago.

 

Parker said about US$ 155 million (about E1 billion) worth of goods went to the USA duty free under the AGOA regime last year alone.

 

This is a significant drop from 2005 when the country’s exports to the USA stood at E1.3 billion.

 

In 2004, the exports also amounted to E1.3 billion.

 

Despite the downward trend being recorded in the country’s exports, Parker expressed hope that they would increase every year.

 

He noted that his government had put in place trade programmes such as AGOA, which provided incentives for companies based in Swaziland and other African countries to export non-petroleum products to the USA duty free.

 

“We are supporting a regional trade hub based in Botswana, which aims to help Swazi companies increase its trade with neighbouring countries, capitalise upon trade opportunities and asses governments to create a climate to enable businesses to flourish,” he said.

 

Principal Secretary in the Ministry of Finance Dumsani Masilela noted that AGOA was an important market and as such, the country had to ensure that it maintained its access to this market.

 

“Our continued stay in this market is an added advantage in many aspects of the country’s economy, especially on getting foreign exchange and employment opportunities,” he said. The African Growth Opportunity Act was signed into law in May 2000.

 

Trade between the USA and Sub-Saharan Africa is highly concentrated, with a small number of African countries accounting for an overwhelming share of the total for both imports and exports.

 

The AGOA report for 2007 states that the administration of AGOA is proud of its efforts to bring sub-Saharan Africa more fully into the community of trading nations.

 

“Trade is the best tool we have that is meant to alleviate poverty and spur economic development, and AGOA is a key element in America’s effort,” partly reads the report. It further states that since AGOA’s launch in 2000, two-way trade between USA and sub-Saharan African countries has increased by 143 percent.