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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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Stanbic IBTC Capital Celebrates Excellence in Real Estate

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Stanbic IBTC Capital

By Modupe Gbadeyanka

The 16th Honours Nite of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos State Branch, received the full backing of Stanbic IBTC Capital, a subsidiary of Stanbic IBTC Holdings.

The company sponsored the event, which brought together industry leaders, corporate partners, and public sector decision-makers in the real estate sector.

It was an avenue to recognise and celebrate exceptional achievements in the real estate and development ecosystem.

The chairman of NIESV in Lagos, Mr Gbenga Ismail, while addressing guests at the programme themed Inspiring Excellence, Shaping the Future, said, “Honours Nite gives us the chance to highlight the excellence and integrity inherent in our profession. While we celebrate today’s achievers, we set a precedent for a future that embraces innovation.”

The chief executive of Stanbic IBTC Capital, Mr Oladele Sotubo, stated, “At Stanbic IBTC Capital, we believe that excellence in the real estate sector is necessary for sustainable growth and community development.

“By supporting events like the NIESV Honours Nite, we underscore our commitment to recognising and empowering the professionals who shape our built environment.

“Together, we can inspire innovation and uphold the highest standards, ensuring a future where quality housing and ethical practices thrive in Nigeria.”

Also, the Head of Real Estate Finance for West Africa at Stanbic IBTC Capital, Mr Tola Akinhanmi, expressed pride in supporting professionals and developers dedicated to providing high-quality housing solutions.

“These awards recognise projects that meet significant market demands and symbolise the progressive vision for the future of real estate in Nigeria,” he said.

At the ceremony, Stanbic IBTC Capital was announced as the winner of the Residential Development of the Period Award. This was for projects that demonstrated significant market influence and superior execution.

Biufort Homes Limited’s Greenwich Gardens (Ketu) won the Silver Award, while UPDC Plc’s The Hampshire earned the Gold Award for its outstanding design, execution, and strategic contribution to the premium residential landscape.

The collaboration between Stanbic IBTC Capital and the group highlights the importance of excellence in the real estate sector.

It sets a foundation for future innovations and advancements especially in underweight asset classes such as the residential sector which will help to catalyse developments and further bridge the housing supply gap in Nigeria.

This further underpins Stanbic IBTC’s value proposition and support to stimulate home ownership and acquisition via our end-to-end product offering including construction/development finance, insurance and various home loan packages which creates effective demand.

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Anzisha Shines Spotlight on 30 Young African Entrepreneurs

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Anzisha YouTube Series

By Modupe Gbadeyanka

The third season of the YouTube series of Anzisha, The Journey, will focus on 30 very young entrepreneurs across Africa.

The documentary series will provide an uncensored glimpse into the grit of the small business owners, letting the viewers know the hurdles, strategic pivots, and moments of leadership that define their journeys.

With over 1.13 million YouTube views last season, The Journey S3 promises to be even more impactful.

This season culminates in a high-stakes pitch competition where four prizes totalling $40,000 will be awarded to the most promising entrepreneurs.

This intense pitch week in Johannesburg, South Africa, is where young founders refine their ideas, validate the work they’ve done over the last two years, and battle for prizes that can transform their ventures.

Viewers will see entrepreneurs navigate uncertainty when faced with unpredictability. These young leaders, aged 15 to 22, come from across Africa, including Zimbabwe, Nigeria, Madagascar, Benin, Uganda, Zambia, Ghana, Egypt, DR Congo, and Senegal.

Their ventures span across numerous sectors, from agriculture and food processing to technology, logistics, and personal care, clearly reflecting innovation across the continent.

The series showcases them building sustainable ecosystems that extend beyond financial returns and redefining leadership through inclusive and purpose-driven businesses.

The Managing Director of Anzisha, Didi Onwu, said, “The Journey season 3 is more than just a series; it’s a window into the future of African enterprise.

“It showcases the dedication, innovation, and resilience of young entrepreneurs who are not just building businesses but transforming their communities.”

The Journey’s season 3 offers a rich tapestry of experiences from a broad group of young African entrepreneurs.

Viewers will see the reality of their experiences, the balance of vision and execution, innovation and sustainability, and personal ambition driven by a desire to address gaps within their communities.

This season deepens understanding of the African entrepreneurial ecosystem by providing an honest look at the complexity of developing businesses in emerging markets.

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FG Seeks Brazil’s Support for Green Methanol Industrial Complex

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methanol production

By Adedapo Adesanya

The federal government is already developing a robust Green Methanol Industrial Complex, the highest in Africa and is seeking Brazilian partnership in design, certification and feedstock optimisation for socio-economic development of the country.

The Minister of Innovation, Science and Technology, Mr Uche Nnaji, during a visit of the Ambassador of Brazil to Nigeria, Mr Carlos Gracete, to his office in Abuja, said under President Bola Ahmed Tinubu’s Renewed Hope Agenda, the Ministry was driving reforms that will place innovation at the center of job creation, industrial growth and national competitiveness for economic development.

He emphasised that the efforts are being made to mechanize agro-processing and unlock the full potential of cassava, sugarcane and soybean value chain for the betterment of the citizens, reaffirming that the country is ready to work closely with Brazil to co-create inclusive, sustainable and high impact innovation projects.

On his part, the Director-General of the National Space Development Research Agency, NASRDA, Mr Matthew Adepoju while speaking, said that the agency is expanding Nigeria’s satellite capabilities and therefore seeks collaboration with Brazil’s national Institutes for Space Agencies on areas of Remote Sensing, Climate Monitoring, Land Use Analytics, Border Security and Disaster Response.

Also, the envoy said the purpose of the visit was to deepen bilateral cooperation between Nigeria and Brazil in key areas through technology, innovation driven development and trade relationships.

Methanol fuel is an alternative biofuel for internal combustion and other engines. It has chemical and physical fuel properties similar to ethanol and current research now focuses on the use as a sustainable marine fuel that will contribute to economic diversification of the country.

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