Botswana underutilises AGOA platform
Botswana companies have been urged to take advantage of the African Growth and Opportunity Act ( AGOA) market and increase products for export to the United States of America. United States Agency for International Development ( USAID) revised the AGOA national response strategy with a detailed comprehensive plan for Botswana to increase its exports to the United States under the AGOA Preference Program.
Launching the new strategy, US Ambassador to Botswana, Craig Cloud said Botswana has not yet taken full advantage of the AGOA strategy. “This is an opportunity for Botswana to utilise this strategy and fulfil all the initiatives of economic diversification that they have been talking about.” He pointed out that the US government has been a partner of the private sector in Botswana especially those seeking to export to the United States. “USAID is working with Botswana Exporters and Manufacturers ( BEMA), BITC and Business Botswana to assist manufactures to come up with quality products and to identify and connect with US buyers through business- tobusiness platforms which assist them to engage with potential buyers.”
Currently, Botswana’s large export products to the US are the diamonds. According to Statistics Botswana’s latest records of International Trade Statistics, the USA received 1.1 percent ( P71.4 million) of total exports in February 2021, with 99.8 percent ( P71.2 million) of that total attributable to Diamonds. Cloud said the USAID supports Botswana’s National Development Plan, Vision 2036 and National Export Strategy ( 2019- 2024); the revised strategy emphasizes priority sectors including arts and crafts, jewelry and semi- precious stones, natural indigenous products, meat and meat products. “We want to see Botswana’s products come to the US and it is imperative for Botswana to use this framework to diversify its economy and not rely on diamonds only.” Firms assisted by the U. S. government through USAID include Donkey Milk Industries and DLG Naturals. Overall, in Southern Africa, USAID has supported nearly $ 90 million in African intra- regional trade and exports to the United States since October 2016. It has also facilitated more than $ 177 million in private- sector investment in both agriculture and non- agricultural sectors. The AGOA Preference Program is a nonreciprocal unilateral trade arrangement that the United States established 20 years ago to promote bilateral trade and investment between the United States and sub- Saharan African countries. For Botswana, exports through the AGOA program will provide entrepreneurs with a chance to revive their firms, which have suffered heavily due to the impacts of the ongoing COVID- 19 pandemic, while providing much- needed employment to revitalize the economy. It calls for counselling to exporters on how to access U. S. markets through, for example, support with certifications and label reviews as well as listings on e- commerce platforms.
The strategy also gives special attention to addressing specific challenges faced by women- led enterprises. The Minister of Investment Trade and Industry, Mmusi Kgafela said consultations have been undertaken with respective sectors to ensure that specific issues are understood and impediments addressed to increase the export base. “These consultations will assist in addressing implementation challenges across, for all stakeholders to create high- value exports to the US. Government is committed to developing an export led economy which contributes to the transformation of this economy.” He pointed out that the new strategy identifies a high potential of employment creation and high production capacity by local companies as well as opportunities in empowering women.