East Africa Trade Hub

The Regional Opportunity
Since 2000, the African Growth and Opportunity Act (AGOA) has provided incentives for African countries to become more globally competitive by making economic and commercial reforms. The main incentive is the opportunity to export goods, from a list of qualifying items, to the US without paying import tax. This opportunity has the potential to significantly boost trade between Africa and the US and to fuel innovation and job creation in Africa. To take advantage of the AGOA opportunity, African companies must improve their products and connect with US buyers.

East Africa Trade Hub’s  Strategic Approach  
The East Africa Trade Hub (EATH) provides technical assistance to African firms and Governments to enhance their competitiveness in global markets and helps African businesses take advantage of trade opportunities available under AGOA via an East and Central Africa Global Competitiveness Hub (EATH). The Trade Hub has built strong working relationships with its regional partners to expand export opportunities and to promote increased inter-regional trade.
EATH is the one-stop shop in the region for business and National Governments seeking to take advantage of AGOA, providing targeted assistance in two primary areas: firm-level assistance and AGOA national assistance. Firm-level assistance promotes direct business linkages between the United States and East African firms. It addresses business development constraints; provides targeted technical assistance; educates private sector groups and associations about AGOA opportunities; and creates valuable business networking opportunities through trade shows, trade missions, business-to-business events and conferences.
At the national level, the Trade Hub assists AGOA-eligible East African countries to develop action-oriented strategies to more systematically take advantage of AGOA opportunities and focus their efforts in areas of competitive advantage. For example, it encourages countries to integrate trade facilitation concerns into the national economic agenda and include private sector participation in national export diversification strategies.

Increasing Trade Under AGOA
The EA Trade Hub provides technical assistance to African firms and Governments to enhance their competitiveness in global markets and help African businesses take advantage of trade opportunities available under AGOA (African Growth and Opportunity Act). The EA Trade Hub targets its assistance in four sectors: apparel, cut flowers, specialty foods, and home décor & fashion accessories.
Together with the African Cotton & Textile Industries Federation ACTIF, the EA Trade Hub established the Origin Africa awareness campaign to change perceptions about doing business in Africa, put Africa on the map as a preferred sourcing destination, and demonstrate to international buyers and industry leaders that creativity and innovation are an integral part of Africa’s future
For more information visit: www.competeafrica.org

Reasons for U.S. Apparel and Textile buyers to import from Africa

U.S. apparel imports from African Growth and Opportunity Act (AGOA) eligible countries are duty free. AGOA eligible countries include: Angola, Benin Botswana ,Burkina Faso, Burundi, Cameroon, Cape Verde, Chad, Comoros, Republic of Congo, Cote d’Ivoire, Djibouti, Ethiopia, Gabon, The Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, South Africa, Swaziland, Tanzania, Togo, Uganda and Zambia. Without AGOA, U.S. duties on most imported apparel products would range from 16% to 32%.
Third country fabric provision allows for greater options. It allows AGOA-eligible African countries to use imported fabric from anywhere in the world for their U.S. destined apparel exports, without losing their duty free AGOA benefits. The provision, which would   have lapsed in September 2012, has been extended until September 30, 2015. The third country fabric provision increases African competitiveness by allowing them to obtain inputs from the most cost effective sources in the world. The World-class production facilities have been developed in  Kenya with recently built new state-of-the art factories with increased production capacity.

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