The African Growth and Opportunity Act (AGOA) summit that took place in Nairobi is becoming a platform of discontent; some analysts are claiming that the partnership is not benefiting Africans as much as it was supposed to when it started way back in 2000.
The African Growth and Opportunity Act (AGOA) summit that took place in Nairobi is becoming a platform of discontent; some analysts are claiming that the partnership is not benefiting Africans as much as it was supposed to when it started way back in 2000.
There are 39 African countries that describe to the US-promoted AGOA but the big question is how much have all these countries gained in this whole thing.
The fact is that Africa has not gained much in this partnership since it started nine years ago when the former US president Bill Clinton created it.
When AGOA was created, its main aim was to offer tangible incentives for African countries to continue their efforts of opening their economies and building free markets.
However, there is a blame-game going on between the US and AGOA members where the US cites lack the lack of quality products being exported African member nations.
African countries are expected to always export goods of International standards so as to be able to continue having the partnership radiant, but they are not conforming to the standards.
This leaves one wondering if the US must accept the products because it signed the act?
Africans on another side are claiming that business in Africa is being dominated by American surrogate companies which are reaping big from the opportunity which was formally meant to benefit Africans.
The other day an economic analyst based in Nairobi ,James Shikwati a Kenyan libertarian economist and Director of the Inter Region Economic Network, which promotes freedom of trade said that many companies benefiting from AGOA are sister companies to those in the US.
He added that what Africans benefited from it was getting jobs from these American companies and nothing else.
But if you analyse the whole situation, you will find that it is the Africans who are not doing enough to exploit AGOA properly.
It may be true that American companies are dominating the AGOA market, but we are in laisse faire-economy, where you are expected to compete if you are to survive in the market.
If the Americans are investing in Africa due to the calls by these countries to come and invest their money here, what is the African competitor expected to do?
If you cannot produce goods that have international standards to meet the market demands in the US, how do you expect these people who look at nothing but quality, to buy your products?
Africans should stand up and start doing real business if they are to experience economic independence on the competitive global market.
Like president Obama says, the growth of Africa will be achieved by Africans themselves.
Africans are not going to achieve the growth if they don’t work to achieving it. African economies should drop the blame game and begin working hard.