Kenya has been among the key beneficiaries of the African Growth and Opportunity Act (AGOA). AGOA is a trade provision by the US Government that offers tangible incentives for African countries to continue their efforts to open up their economies and build free markets. Sectors such as tea, horticulture, textile and apparels, coffee, tobacco products among others have fruitfully benefited from the AGOA trade provision.
Despite the success and the subsequent formation of a special AGOA unit under the Ministry of Trade (MoT), Kenya is still far from realising the potential under AGOA. For instance, in the apparel sector, out of the 18 garment makers in Kenya's export processing zones (EPZ), only one is Kenyan-owned. Similarly, out of the over 6400 products allowed to be exported under AGOA, Kenya only exports under 20 products. Other challenges Kenya faces in taking advantage of AGOA include;
US market requirements that need to be met
Transportation costs to different markets Erratic and costly electricity supply Complicated and burdensome customs and trade regulations Establishing how to manage entry into a comparatively new market ACTIF has been in the fore front leading advocacy to the US government on the extension of AGOA beyond the expiry deadlines. ACTIF wants to assess the extent to which other Kenyan businesses, other than those in the cotton and textile sector, have taken up the business opportunities offered by AGOA. The assessment will also establish policy changes needed in Kenya to ensure more awareness and participation by the private sector under AGOA.
Expected Outcome
ACTIF expects that the AGOA uptake assessment exercise will develop a strong position for both ACTIF and the Kenyan Government to present at the annual AGOA forum, 2013. The forum is an excellent platform to present Kenya's and ACTIF's position given that the key US Government officials will be participating.
Key among the positions that ACTIF wants to advocate is the extension of AGOA beyond 2015 to allow the African economies to be fully developed and able to complete adequately for the US market.
buluma
commented
7 years ago
Kenya has been among the key beneficiaries of the African Growth and Opportunity Act (AGOA). AGOA is a trade provision by the US Government that offers tangible incentives for African countries to continue their efforts to open up their economies and build free markets. Sectors such as tea, horticulture, textile and apparels, coffee, tobacco products among others have fruitfully benefited from the AGOA trade provision.
Despite the success and the subsequent formation of a special AGOA unit under the Ministry of Trade (MoT), Kenya is still far from realising the potential under AGOA. For instance, in the apparel sector, out of the 18 garment makers in Kenya's export processing zones (EPZ), only one is Kenyan-owned. Similarly, out of the over 6400 products allowed to be exported under AGOA, Kenya only exports under 20 products. Other challenges Kenya faces in taking advantage of AGOA include; US market requirements that need to be met Transportation costs to different markets Erratic and costly electricity supply Complicated and burdensome customs and trade regulations Establishing how to manage entry into a comparatively new market ACTIF has been in the fore front leading advocacy to the US government on the extension of AGOA beyond the expiry deadlines. ACTIF wants to assess the extent to which other Kenyan businesses, other than those in the cotton and textile sector, have taken up the business opportunities offered by AGOA. The assessment will also establish policy changes needed in Kenya to ensure more awareness and participation by the private sector under AGOA.
Expected Outcome
ACTIF expects that the AGOA uptake assessment exercise will develop a strong position for both ACTIF and the Kenyan Government to present at the annual AGOA forum, 2013. The forum is an excellent platform to present Kenya's and ACTIF's position given that the key US Government officials will be participating.
Key among the positions that ACTIF wants to advocate is the extension of AGOA beyond 2015 to allow the African economies to be fully developed and able to complete adequately for the US market.