Private sector should spearhead investor relations

Business reporters
THE private sector has been challenged to spearhead investor relations with foreign countries and initiate dialogue to be able to export their products to the United States market under the United States African Growth and Opportunities Act.

The AGOA is an American Trade Act, which was enacted in 2000 as Public Law 106 of the 200th Congress and it significantly enhances market access to the US for qualifying Sub-Saharan African countries.

Qualification for AGOA preferences is based on a set of conditions contained in the AGOA legislation.

Zimbabwe was initially considered not eligible to participate in the AGOA after the US had problems with the country over the land reform programme. The US imposed illegal sanctions on Zimbabwe in 2003 after its ally, Britain, internationalised its bilateral land dispute with Harare.

In an interview, a senior international advisor for Africa with US government Dr Witney Schneidman said the private sector in Zimbabwe and their US counterparts should be on the forefront of driving the economy and attracting investment into the country.

He said the AGOA market presents a business opportunity for local companies to export.

He said the political impasse between the US and Zimbabwe governments should not prevent the private sectors working together.

He said AGOA presented over 6 500 products that could be exported duty free to the US market.

“What AGOA does is that it reduces to zero some 6 500 products coming from countries that participate into this in the USA,” he added.

The data, compiled by the US Department of Commerce and released by the Southern Africa Trade Hub indicated that in 2013 Lesotho led the continent with US$74,9 million in textile exports to the US in the first quarter of 2013, followed by Kenya with US$71,4 million and Mauritius with US$43 million.

The AGOA which was supposed to expire in September this year was further extended by 10 years to 2025 by US President Barack Obama. To date, about 39 countries from sub-Saharan Africa, are participating in the AGOA.