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US govt: Potential for trade far exceeds that of aid
2007-11-13 09:59:33
By Adam Ihucha, Arusha
The potential of trade to alleviate poverty in African continent far exceeds that of aid, Assistant US trade representative for Africa, Florizelle Liser said here yesterday.
Presenting her paper titled, ‘Strengthening US-Africa Partnerships on Trade and Investment” at the fourth round African World Business Congress & Tanzania Investment Forum, Liser said if Africa were to increase its share of global trade by just one percentage point-to three, it would generate additional export revenues of USD70bn - equal to three times the amount of current annual donor assistance.
Tools for advancing US-Africa trade, she said, are such as preferential trade programmes like African Growth and Opportunity Act (AGOA), Trade and Investment Framework Agreements, Bilateral Investment Treaties and Trade Capacity Building Assistance.
AGOA provides access to US market through 2015 for more than 6,000 products, where 39 sub-Saharan African countries are eligible.
In agriculture, for instance, AGOA agricultural exports totalled USD361m in 2006, a 33 per cent increase`` Liser explained.
According to her, South Africa is the most diverse AGOA agriculture exporter, sending everything from fresh citrus, to wine to macadamia nuts.
With regard to African cut flowers, Liser said, exports to US are growing, up to 61 per cent in the first eight months of 2007, to USD4.4m. Kenya, Ethiopia, Uganda and South African are the main exporters.
Tanzania’s experience under AGOA, is modest, but growing-up 85 per cent in first eight months of 2007, Liser said, adding that mostly Tanzania’s AGOA exports are apparel, semi-manufactured gold, seeds and semi-precious stones.
“But the country has a potential in cut flowers, jewelry, light manufacturers that can earn the country a large chunk of foreign currency” she noted.
Non-AGOA exports also up-59 per cent, these are coffee, cashews snd semi-precious stones.
The 4th African World Business Congress (AWBC) and Tanzania Investment Forum (TIF) 2007, which started yesterday, is a rare opportunity for Tanzania through TIF to showcase her immense investment opportunities available in the country, the Minister for Planning, Economy and Empowerment, Dr. Juma Ngasongwa said.
Ngasongwa said in his welcoming remarks that Tanzanian government is taking the event as a platform for it to unveil new projects in the country, as well as inform potential investors of the favourable and attractive benefits, that the country is offering to them.
``We will focus on key industries such as agriculture, infrastructure, mining, agro-industry, tourism, construction, trade and services`` said Dr. Ngasongwa.
Tanzania’s economic growth was 6.7 per cent in 2005, slightly went down 6.2 per cent in 2006, and is expected to strengthen to 7.3 per cent in 2007.
In the recent World Bank Report Doing Business 2007, How to Reform, Tanzania made the list of top ten reformers across 175 countries.
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