A congressional watchdog agency said the Agency for International Development could do more to assist AGOA countries develop export strategies.
A congressional watchdog agency recommended the U.S. Agency for International Development could do more to assist those sub-Saharan African countries which are part of the African Growth and Opportunity Act programs to develop strategies that boost their exports.
AGOA was signed by the White House in 2000 to promote exports and develop infrastructure in qualifying sub-Saharan African countries. These countries also receive duty-free access to the U.S. market for their qualifying goods exports.
From 2001 to 2014, U.S. agencies have funded about $5 billion in trade capacity building assistance to AGOA countries.
USAID has obligated about $1.6 billion in trade capacity building funds mostly for agricultural trade and infrastructure development in these countries. For example, the agency supported East African exporters with building business in the United States through trade shows.
However, the Government Accountability Office said USAID should do more to work with AGOA countries to develop trade hubs, but a lack of a “strategic approach” has been noted as a “significant reason for gaps in AGOA utilization.”
As of December 2014, GAO noted only 14 of the 41 AGOA countries had “strategies reflecting AGOA priorities.”
USAID officials responded to the GAO’s report by stating AGOA country governments must initiate the process to develop strategic initiatives, but a “lack of political will” on part of these governments remains an impediment.
The full GAO report may be viewed here.
GAO: USAID could do more to help African countries export
