Issues arising from pooling resources and integrating economies
L’intégration de l’Afrique est le blog du Groupe de la BAD portant sur l’intégration régionale en Afrique. Ce blog fera la chronique des questions découlant des efforts fournis par les pays africains qui s’efforcent à mutualiser les ressources et à intégrer leurs économies pour le développement de leurs économies régionales et individuelles. Lire plus
The US- Africa African Growth and Opportunity Act (AGOA) Forum, which took place from September 22-26, 2016, in Washington DC, USA, was an opportunity for both African countries and the US to reflect on the gains made under AGOA to date. This was especially important as indications point to the current iteration of AGOA being the last one ahead of a new trade dispensation between the US and Africa from 2025 onwards, punctuated by reciprocal trading relations.
Since 2000, the United States’ African Growth and Opportunity Act (AGOA) has been a pillar of the U.S. trade policy towards Sub-Saharan Africa. It offers duty-free entry to over 6,400 products into the U.S. from eligible Sub-Saharan African countries, making African products more cost-effective and competitive. The recent extension of AGOA to 2025 gives new impetus to eligible countries to harness its advantages.
Ten years is a very short time in the global economy, and by all accounts a decade is all that is left of the African Growth and Opportunity Act (AGOA). While the United States’ unilateral preferential access programme for Africa has been reauthorized three times since it began in 2000, it looks very unlikely to be extended beyond 2025.
Africa is growing. Estimates are that the continent’s population will double in the next 50 years. Concomitant to this population boom will be an increase in the total working age population. This increase in the working age population creates a window of opportunity with the possibility of higher growth arising from the “demographic dividend”. This “demographic dividend” played a role in the “Asian Miracle”, where research shows that from 1965 to 1990, the 23 economies of the East Asia region grew faster than all other regions of the world, in part due to the increased number of the working population.