Heading AGOA

Ten years after the African Growth Opportunity Act was enacted, Zambia has stepped in to take over the AGOA Forum chairmanship for the next twelve months.

The Kenya Minister of Trade Amos Kimunya passed on the chairmanship to Zambia Commerce Trade and Industry Minister Felix Mutati in Washington DC recently.

Mr Mutati in his usual orator’s speech highlighted the importance of AGOA in promoting trade and economic development in sub-Saharan Africa. He went on further to emphasize the opportunities presented by the United States of America markets, where good financial returns could be made as Africa experiences positive growth.

In his never ending effort to market Zambia, Mr Mutati made reference to the abundant raw materials and minerals that Africa possesses, the cost effective labour force, the reduction in corruption, the introduction of business reforms, and the stable macro economic environment.

There is much ceremony and pomp at these occasions and we seldom see the subtle positioning of our trade partners to drive the processes to achieve their own desired goals.

The AGOA discussions on ‘New Strategies for Expanding US sub-Saharan African Trade’ was not developed by African countries endeavoring to trade with the USA. The topic and theme were the brainchild of the American civil service to ensure that the USA gets the best deal from the dialogue.

It is not a bad thing to do. We must remember however, that it was an engagement for the benefit of the USA and not necessarily for Africa or Zambia in particular.

It is said that the goal of the annual AGOA forum is to expand trade and investment with the USA, to review the implementation of the AGOA program, and to explore new ways to enhance trade across the Atlantic.

It goes without saying that the USA dialogue teams at the AGOA forum were adequately supported by their private sector representatives that put their trade agenda for Africa on the table to be discussed and negotiated with our government representatives.

The question is; did we do the same? Did Mr Mutati take with him a dossier of private sector concerns and positions that he needed to place on the discussion table? Did he take a team of private sector advisors to keep him on target?

If he did, then Zambia is on the right path and can use the AGOA route to enhance trade with the USA in a manner that will grow the domestic economy and provide opportunities to the Zambian private sector.

If he did not, then we will have yet again played into the hands of the smarter and more organized west that always takes advantage of our weakness in collaborating, partnering, and co-operating when it comes to tackling the outside world.

This may even be true of the African Ministerial Consultative Group meeting that took place in Washington DC. After all the meeting was in the USA, on USA terms, and hosted by the USA. We all know about the old saying that goes ‘He who pays the piper calls the tune’.

Did we consult on issues that we are concerned about? Did we bring out the statistics on how AGOA has not worked for us so far? Did we share experiences and try to assess what the failure root causes have been? Did we have a chance to openly brain storm and innovate some good ideas on how we can make AGOA work for our individual countries? I suspect not.

Zambia’s Ambassador to the USA Ms Shiela Siwela coined the event quite well when she noted that the AGOA forum could be used as a platform for the Zambian delegation to engage with American decision makers and their private sector in developing productive business networks.

The media reports indicate that Mr Mutati was the driver of the AGOA forum for Zambia, but no mention is made of the private sector voices that may have been present, and may have had something useful to contribute towards making AGOA work for Zambia.

It is typical for developing economies including Zambia to invest in the politicking, posturing, and signing ceremonies as an end in itself, and leave the real business of doing business out of the equation.

This tongue twisting and unproductive priority setting situation often leaves Zambia on the side lines waiting for something positive to happen by default, rather than spurring the economy ahead with a well developed and articulated response and implementation program that has the full backing of the private sector and the various government organs.

Now that Zambia is in the chair, we may be smart to peer review ourselves with outgoing chair Kenya, and possiblyUganda, to measure our AGOA successes over the next twelve months.

Accepting the AGOA chair has a momentary glory at the hand over ceremony when the spotlight is on Zambia. The 2010 to 2011 AGOA season can either be considered as an opportunity to propel Zambia into substantial trade with the USA, or it can be a waiting period that assures us of being invited to yet another AGOA forum where we joyously exhibit that we have survived the year and finally hand over to a new chair.

The Ministry of Commerce, Trade and Industry have now taken on the new responsibility of deciding what to do with AGOA. The private sector is now aware of Zambia’s special position of sitting in the AGOA chair. We all anticipate that there will be exaggerated interaction and engagement between government and the private sector, even if only to avoid media reports next year that will hold us all accountable for any failures in AGOA when the program was tightly set in our hands.

Published 10 August 2010