Ethiopia's Export Under AGOA Shows Dramatic Increase

Ethiopia’s export to the US under AGOA, African Growth and Opportunity Act, has risen by 62 per cent in just one year. If this trend continues, Ethiopia is poised to be the second or third largest exporter in East Africa under AGOA, USAID, US Agency for International Development, states.

Under AGOA, exports from Ethiopia, Rwanda, Uganda, Madagascar, Kenya, Tanzania, Mauritius and Burundi, the eight countries which benefit from the act, rose by 17 per cent during the period October 2017 to September 2018, compared to the same period in the previous year. 

While Mauritius and Burundi saw a decline in their exports, all the other countries saw a rise in their exports, Ethiopia getting the helm of all. Increased competition from Madagascar is mentioned as a reason for decline in exports from Mauritius, while the Generalized System of Preferences (GSP) is highlighted as a reason for Burundi’s drop in its share of exports.

The eight countries made an export to the US in the period from October 2017 to September 2018 worth $1 billion. Kenya, the largest exporter of the eight, accounted for $454 million while Ethiopia’s exports amounted to $137 million. 84.4 per cent of AGOA exports is accounted for by apparel.

To date, USAID Hub trade and investment support has contributed to $4.07 billion in AGOA exports from the region, with $491.5 million from USAID Hub-supported firms.

AGOA is a United States Trade Act, enacted on 18 May 2000, which significantly enhances market access to the US for qualifying Sub-Saharan African countries. While it was originally intended for a period of eight years, subsequent renewals have ensured its existence till at least the year 2025.

Sources: ENA, Fana BC


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