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Civil Society Engagement at Core of US-African Relations in Multipolar World

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US-Africa Civil Society 2023

By Kestér Kenn Klomegâh

The United States has held its 8th annual civil society forum to review progress, examine challenges and renew interest in forging ways to strengthen relations with Africa. The United States has the largest African diaspora with close-knitted business, educational and cultural links with African countries. This helps to support official efforts in promoting relations with Africa.

The conference was a hybrid event that brought together civil society organizations, business, and government leaders from across Africa and the United States virtually and in person. The purpose of the gathering was to advocate for a ten (10) year Enhancement/Extension of AGOA benefits from 2025 to 2035, support the African Union’s Agenda 2063, including the implementation of the African Continental Free Trade Areas and an African Customs Union, and come up with recommendations on the way forward.

Since its passage by Congress on May 18, 2000, and signing into law on October 2, 2000, by President Bill Clinton, the African Growth and Opportunity Act (AGOA) has been the cornerstone of U.S. economic engagement with the countries of Sub-Saharan Africa (SSA).

AGOA is a long-term commitment with broad bipartisan support. On June 25, 2015, Congress overwhelmingly approved the Trade Preferences Extension Act (TPEA) of 2015, and on June 29, 2015, President Barrack Obama signed TPEA into law. TPEA reauthorizes AGOA and the associated “third Country fabric “provision for ten years through 2025.

Congress passed, and the executive branch implemented three prior legislative enhancements of AGOA, with significant bipartisan support in 2002, 2004, and 2006.

Discussion Highlights:

The Biden-Harris Administration is committed to strengthening US-Africa trade and commercial relations and engaging Congress on the next steps for AGOA.

In December 2022, the African Union Ministers of Trade from the AGOA-eligible countries met in Washington, DC, at the request of Ambassador Katherine Tai, USTR, “to have a full and frank exchange of views on how to work together to improve the utilization rates under AGOA and ensure that the program can be an effective tool for development.”

At those high-level engagements, there was consensus that there is a need to extend AGOA beyond 2025. The recommendation has been tabled before the US Administration. During the meeting, Ambassador Tai, the African Ministers, and the Africa Group of Ambassadors also underscored the following:

  • An extension of AGOA for at least ten years with the inclusion of ALL African countries
  • The importance of Africa speaking with One Voice in all US-Africa trade and investment engagements; and,
  • Enhanced commercial diplomacy between the US and Africa. There was also agreement that South Africa would host the next AGOA Forum in August/September this year.

United States Trade Representative (USTR) Ambassador Katherine Tai is committed to robust trade and economic collaboration with Sub-Saharan Africa. USTR Tai believes that Africa is the future. On-going discussions are taking place with African nations, including negotiations between Kenya and the U.S. regarding a strategic trade and investment partnership.

Stringent requirements from the various U.S. trade regulatory authorities and the limited industrialization capabilities in Africa are factors for the very low utilization of AGOA benefits. As a result, only a few product lines, such as fossil fuels, vehicles, clothing, textiles, and currently, Beef, are exported from Africa under AGOA.

Under-utilization has caused African exports to the U.S. under AGOA to decline from USD 78.01 billion in 2013 to USD 28.19 billion in 2022, resulting in a setback for Africa.

African countries are devising methods to improve export diversification, growth, and industrialization, including developing regional and continental value chains. These efforts present a tremendous opportunity for US companies to take advantage of the market provided by the African Continental Free Trade Area.

Succeeding in the African Continental Free Trade Area, a market with enormous growth potential, requires investing.

Each State participating in the African Continental Free trade agreement retains its national external tariffs. Exporting into this market will generate tariff charges.

Creating an African Customs Union will allow for a shared external tariff and pave the way for Africa to establish free trade agreements with trading partners.

American companies can enjoy duty-free exporting from their home bases, and Africa is in a better position to grow US-Africa trade with the African Customs Union in place.

A renewed U.S. policy on AGOA should prioritize investment in specific sectors, such as Trade, Financial Services, Health, Climate, Food Security, Tourism, and Logistics, including Gateway Initiatives and the Digital Economy.

Targeted U.S. investment conducted in partnership with businesses and institutions in each AGOA-eligible country, and per their respective utilization/transition plans, will catalyze American investment and technology, encourage innovation, instil U.S. values and best practices throughout Africa, create more jobs for youth on both sides of the Atlantic Ocean, and fill in gaps in markets across the continent in preparation for the African Continental Free Trade Area and the African Customs Union.

Africa is the major consumption hub of the future. The general population is young and increasing; the African middle class is also growing, and with it, demand for industrial goods is 1.5 times higher than the global average.

The issue of low utilization rates of AGOA benefits needs to be addressed. Studies show that nations with AGOA Country Strategies have higher utilization rates than nations without country strategies, and these countries use AGOA benefits to create good-paying jobs.

The utilization rate of the Generalized System of Preferences (GSP) and all U.S. preferential trade programs for Least Developed Countries (LDCs) has decreased. AGOA is the only U.S. preferential trade program with a positive utilization rate of about 1.6%.

The metric and measure of AGOA’s success should be contingent on RETURN ON INVESTMENT, not its shortcomings.

AGOA’s cost to U.S. taxpayers is nominal especially compared to U.S. investment in Development Aid to Africa.

AGOA’s non-oil imports have risen approximately 307% to $5.7 billion in 2022, while AGOA’s apparel imports have singularly increased by more than 280%.

AGOA has created hundreds of thousands of new direct jobs and millions of indirect jobs in Africa in the textile, agricultural, and automotive industries and more than 500,000 in the U.S.

The economic impact of the COVID-19 Pandemic and Putin’s Conflict in Ukraine poses a threat to US-Africa trade and investment, US-Africa strategic alliances, and gains made over the last two decades using the benefits of AGOA. AGOA has incentivized market-based economies that safeguard private property rights, the rule of law, political pluralism, and the right to due process. It has also enhanced healthcare and education access while protecting globally acknowledged workers’ rights. All these achievements are now at risk.

AGOA remains a transformative success story. Despite AGOA’s challenges and areas of needed improvement, AGOA serves as “proof of concept” at a small financial cost to the U.S. taxpayer, which did not exist 20 years ago.

Africa is the major consumption hub of the future. The general population is young and increasing; the African middle class is also growing, and with it, demand for industrial goods is 1.5 times higher than the global average.

The region of Africa is too significant to ignore. Simply giving inspiring speeches and using diplomacy will not be enough for America to regain its economic and commercial leadership in Africa.

Members of Congress want to see AGOA benefits shared widely and used to create good-paying jobs across Sub-Saharan Africa (SSA); members are open to discussions on ways to build on what is working, and deliberations by members and staff on the future of the legislation are ongoing as re-authorization is approaching in 2025.

There is interest on Capitol Hill to see how investment can be coupled with trade to address poverty reduction and advancement in targeted sectors, such as health care, critical minerals, and others.

Work in Progress Financing helps micro, small, and medium/smallholder farmers to increase productivity and create jobs.

Investing in a Special Purpose Investment Fund and taking advantage of tax incentives should be seen as an opportunity for the American public to support the growth of youth, effective governance, innovative ideas, strategic alliances, and the vast potential of African markets.

Congress never intended for AGOA to be permanent – it is a Trade Preference Agreement (TPA). And all TPAs must meet standards and requirements set by Congress.

Out-of-cycle reviews provide African nations with the opportunity for reinstatement once the sanctions have been addressed.

When AGOA is up for renewal, there is a decline in trade figures across the board, particularly in the apparel sector. Uncertainty regarding extending AGOA affects investment potential in AGOA-eligible countries. Extending AGOA for ten years will stimulate investment in AGOA-eligible countries.

AGOA needs to be extended as most people, especially women and SMEs, are just beginning to learn about AGOA when the current legislation is about to expire.

Recommendations: During the event, delegates made the following recommendations:

  1. The Biden-Harris Administration and the 118th Congress enhance and extend AGOA benefits for ten years from its current September 2025 sunset to September 30th, 2035, to support the African Union Agenda 2063 and the creation of an African Continental Free Trade Areas and African Customs Union – critical tools necessary to utilizing trade to strengthen U.S.-Africa strategic alliances.
  2. Expand AGOA benefits to all 55- member states of the African Union from the current 49 Sub-Saharan African countries.
  3. The U.S. must deliver on commitments made to Africa during the US-Africa Leaders’ Summit, including a $55 billion pledge to support the African Union’s Agenda 2063 and the creation of a new Digital Transformation with Africa (DTA) initiative intended to invest more than $350 million in financing Africa’s digital transformation.
  4. The AGOA CSO Network and private sector stakeholders, with the support of the 118th Congress, the Biden-Harris Administration, and the African Union Commission, to establish a $5 Billion Special Purpose Investment Fund (SPIF), with tax incentives to catalyze U.S. investment, technology, innovation, shared values, and best practices throughout Africa.

The 8th Annual  AGOA CSO Network Spring Conference, under the theme ‘Extending AGOA to 2035’ was jointly coordinated by the AGOA Civil Society Organization (CSO) Network Secretariat and The Foundation for Democracy in Africa (FDA), in partnership with the Institute for African Studies, The Elliot  School for International Affairs, George Washington University.

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FCCPC Denies Approval of New Airtime Credit Operators

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FCCPC

By Adedapo Adesanya

The Federal Competition and Consumer Protection Commission (FCCPC) has dismissed reports claiming that President Bola Tinubu has approved the entry of nine new operators into Nigeria’s airtime credit market, insisting it had no knowledge of, or involvement in, such claims.

In a statement issued by its Director of Corporate Affairs, Mr Ondaje Ijagwu, the commission described the reports as inaccurate, stressing that it did not submit any list of Fintech companies to the presidency for approval as part of reforms in the sector.

The reports, which circulated in several national newspapers (excluding Business Post), alleged that the President endorsed proposals by the FCCPC to restructure the airtime credit market and approved a number of Nigerian financial technology firms to operate within the space.

However, the agency clarified that the regulatory framework under which such approvals were reportedly granted remains suspended, following a court order.

Mr Ijagwu explained that the implementation of the DEON Consumer Lending Regulations 2025 was halted after an interim injunction was issued by the Federal High Court in Lagos on April 15, 2026.

The case was instituted by the Wireless Application Service Providers Association of Nigeria (WASPA), which challenged aspects of the regulation and secured a judicial restraint pending the determination of the substantive suit.

The FCCPC said as a law-abiding institution, it remains bound by the court’s directive and cannot enforce or act on the suspended framework until the matter is resolved.

Reacting to the development, WASPA also raised concerns about how approvals could be granted under a regulatory regime that is currently under judicial review and administrative suspension.

The controversy has left unanswered questions about the origin of the reports, which included detailed policy proposals and named specific companies allegedly cleared to operate in the sector. The case is scheduled for further hearing on July 20, 2026.

This newspaper reports that with the suspension, lending services such as Globacom’s Borrow Me Credit and Airtel airtime advances have been restored, allowing subscribers to get airtime or data during emergencies or temporary cash shortages. Meanwhile, MTN has yet to restart the service.

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NUPRC, NNRA Harmonise Processes to Cut Compliance Costs in Oil Sector

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oil and gas sector

By Adedapo Adesanya

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has commenced moves to harmonise regulatory processes with the Nigerian Nuclear Regulatory Authority (NNRA) as part of efforts to strengthen radiological safety in oil and gas operations and reduce the cost of doing business in the upstream petroleum sector.

The initiative emerged from a recent meeting between the Chief Executive of the NUPRC, Mrs Oritsemeyiwa Eyesan, and the Director-General and Chief Executive Officer of the NNRA, Mr Yau Idris, at the commission’s headquarters in Abuja.

According to a statement issued by the Head of Corporate Communications and Media at the NUPRC, Mr Eniola Akinkuotu, on Sunday, the collaboration is expected to address overlapping regulatory requirements, close existing gaps in oversight, and create a more efficient compliance framework for operators in the industry.

The statement read, “The Nigerian Upstream Petroleum Regulatory Commission is partnering with the Nigerian Nuclear Regulatory Authority in order to enforce radiological safety in oil and gas operations and reduce the overall cost of operations.”

The latest partnership comes as the Federal Government intensifies efforts to boost investment in the petroleum sector, increase production, and enhance operational efficiency following the implementation of the Petroleum Industry Act (PIA).

While the NUPRC regulates the technical, commercial, and operational aspects of oil and gas exploration and production, the NNRA is responsible for regulating the possession, use, transportation, and disposal of radioactive materials and radiation-emitting equipment across the country.

Speaking during the meeting, Mrs Eyesan stressed the need for greater collaboration among regulators to eliminate duplication and improve the investment climate in Nigeria’s oil and gas sector.

She noted that excessive regulatory requirements often translate into additional costs for operators, ultimately affecting the competitiveness of the industry.

“The only way we can safeguard investments is to reduce our cost of operations, and when you have a multiplicity of laws, the likelihood is that you will have higher costs because each law normally will come with its own fees and charges,” the NUPRC boss said.

Mrs Eyesan nominated senior officials from the commission who will work closely with the NNRA on the task ahead.

“We have identified critical areas on both sides, and we believe that, as we collaborate, we can close existing gaps,” she said.

On his part, Mr Idris said the cooperation of the NUPRC was crucial because the upstream petroleum industry remains one of the largest users of radioactive sources and radiation-emitting equipment in Nigeria.

According to him, radioactive technologies are widely deployed in well logging, industrial radiography, and nuclear gauging activities that support oil and gas exploration and production.

He explained that the partnership would enable both agencies to share information and simplify compliance procedures for operators.

“The goal is a single-window approach, where both agencies share information rather than requiring operators to submit the same data twice,” he said.

Mr Idris further stated that, since oil and gas extraction often brings Naturally Occurring Radioactive Materials (NORM) to the surface, the NNRA seeks the assistance of the commission to ensure that operators conduct radiological impact assessments as part of their broader Environmental Impact Assessments, while NORM management protocols are incorporated into the NUPRC’s environmental guidelines for the upstream sector.

The two agencies also agreed to deepen collaboration in training, capacity building, and knowledge sharing on radiation protection and safe operational practices.

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Nigerian Army Rescues 360 from Boko Haram Captivity

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army rescue 360

By Adedapo Adesanya

The Nigerian Army on Sunday said the troops of Operation Hadin Kai (OPHK), a joint task force in the North-east, have rescued 360 abducted persons from a Boko Haram camp in the Mandara mountain axis of Gwoza, Borno State.

Recall that Boko Haram insurgents abducted 416 people, including minors, when they invaded Ngoshe in March.

Following the raid, the group released a video filmed inside Ngoshe in which a commander boasted that it would hold the community through Ramadan and observe Eid-el-Fitr prayers at the Ngoshe Central Mosque. It sent a series of other videos in the next couple of weeks after that.

Then, in another video released on April 19, a Boko Haram commander identified as Mallam Abu issued a 72-hour ultimatum demanding a N5 billion ransom and warned against any military rescue attempt.

On May 17, the captives appeared in another video, lamenting their ordeal in the mountainous terrain and pleading for help from government authorities.

In a statement on Sunday, the acting spokesperson for Operation Hadin Kai, Mr Haruna Sani, said the rescue mission was the result of weeks of intelligence gathering, surveillance and operational planning.

According to him, the operation was launched after security agencies received credible intelligence pinpointing the location of the hostages and identifying an insurgent support network sustaining the camp.

He said military intelligence personnel subsequently combined human intelligence, signals intelligence, and surveillance operations using unmanned aerial systems and long-range reconnaissance patrols to map the area, monitor insurgent activities and assess the condition of the captives.

Mr Sani, a lieutenant colonel, said a breakthrough came after intelligence operatives successfully penetrated the terrorist network, providing detailed information on the exact location of the abductees, the disposition of insurgent commanders and planned movement routes.

He added that coordinated information and psychological operations also created confusion within the insurgents’ ranks, weakening their command structure ahead of the assault.

Acting on the intelligence, troops launched a multi-axis operation under the cover of darkness, isolating the objective area and blocking potential escape routes.

“The operation achieved complete tactical surprise, overwhelming the terrorists before an organised response could be mounted,” he said.

The army spokesperson said several insurgents fled into the surrounding mountainous terrain while others surrendered as troops advanced on the enclave.

Following the assault, soldiers secured and evacuated the hostages, who were subjected to medical screening before being moved to safe locations for treatment and humanitarian assistance.

However, Mr Sani disclosed that two infants died from exhaustion caused by the difficult terrain and the harsh conditions they endured during their captivity.

He described the rescue as one of the most significant hostage recovery operations conducted in the North-east in recent times and a major setback for the terrorist group.

Mr Sani said the military high command commended the troops involved in the mission, noting that the success demonstrated the effectiveness of intelligence-led operations and the growing coordination among security agencies.

He added that the high command also assured the public that follow-up clearance operations are ongoing to track down fleeing insurgents, dismantle remaining support networks and prevent future abductions in the region.

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