Exporters fail to take advantage of AGOA

Ghanaian exporters have failed to take full advantage of opportunities created by the US government’s signature trade initiative the African Growth and Opportunity Act (AGOA), trade experts have said.

This was made known in Accra at the launch of the AGOA, Trade Resource Centre, a collaborative effort of the Ghana Chamber of Commerce and Industry (GCCI) and USAID’s West Africa Trade Hub.

“Countries need to figure out the AGOA strategy and the various requirement. Lots of countries haven’t fully set up the right mechanism; they don’t even have a clear export promotion strategy.

“Countries need to diversify their export base and not just rely on one product. That’s one key element that needs to be considered in the next phase of AGOA,” Mr. Abou Fall, Trade/AGOA & Partnerships Specialist at the West Africa Trade Hub of the USAID, told B&FT in an interview in Accra.

He explained that the next phase of AGOA will focus on developing the capacity of exporters, both locally and regionally, to enable them benefit fully from the US trade initiative.

“There is going to be a lot of focus on regional trade, which will increase economies of scale to be able to penetrate the US market,” he said.

The US government enacted AGOA in May 2000 to give preferential market access for over 6,000 products from sub-Saharan Africa countries to the US market.

Mr. Anthony Chan, Deputy Assistant Administrator, USAID Africa Bureau, observed that GCCI located in the Accra World Trade Centre building -- convenient to numerous exporters -- makes it a truly fitting site to house the AGOA Trade Resource Centre.

“Many local businesses, competing in the international marketplace have a daunting challenge. But since 2003 through the West Africa Trade Hub, USAID has been working to help companies address trade challenges in Ghana and throughout the region.

The West Africa Trade Hub, he said, has assisted over 110 companies to fulfil technical export requirements and meet buyers and business partners in such sectors as shea, cashew, textiles and apparel, home décor & fashion accessories, and specialty foods.

“The Trade Hub also provides critical input to Ghana’s National Export Strategy, and facilitates foreign investments, particularly in the apparel sector,” he added.

Mr. Chan said the collaborative effort is geared toward laying a foundation for Ghanaian exporters to successfully meet demands of the global marketplace for quantity, quality and timeliness.

“The Trade Hub in 2010 facilitated the investment of Lucky 1888 Mills, which now employs over 900 women in its Tema clothing factory. In conjunction with the US Embassy, the Trade Hub also worked with the government in 2012 to help re-establish a direct shipping line from Ghana to the US, making Ghana’s apparel sector much more competitive.

“Through our strong network of West African partners in government, industry, business and civil society, we continue to build upon the progress and successes already achieved toward sustainably boosting exports in agricultural and value-added trade throughout this region as well as globally,” he said.

Mr. Ibrahim Murtala Muhammed, the Deputy Minister of Trade and Industry, said the ministry has identified the facility as a strategic vehicle that will assist in providing services in trade intelligence, export development, business promotion and trade facilitation, and access to funds for businesses.

He said the ministry will support the initiative and build the necessary framework to promote the centre for improvement and growth of trade-related services.

He said government is determined to promote and sustain the consumption of made-in-Ghana goods and services, and urged the GCCI to take advantage of the opportunity to build its capacity to meet the needs of consumers.

Mr. John Amanfu, the Regional Executive Secretary of the Ghana Chamber of Commerce and Industry, said the Centre will help to increase the value of exports from the region by providing guidance for businesses to access regional and global markets for agricultural and value-added trade.

This, he said, will in turn spur greater competitiveness, lead to more jobs, and be a powerful foundation for broad-based economic growth.

Mr. Amanfu, who is also the Coordinator of the Centre, explained that the Resource Centre will as well provide targetted business advisory services and training to local businesses; help them to better understand the international demand for certain products and the technical requirements for market access; and facilitate regional and export linkages.

The Centre is expected to serve as a one-stop-shop for local export-oriented companies to learn about regional and international trade opportunities, particularly those available under AGOA.