Winde pushes for SA’s AGOA’s reauthorisation

The Western Cape Government’s (WCG) efforts to secure the renewal of the Africa Growth and Opportunity Act (AGOA) with South Africa were front and center during an official visit to the United States of America (USA) earlier this month. Premier Alan Winde and his delegation met with officials of the House Foreign Affairs Committee last week in Washington DC. The Foreign Affairs Committee is responsible for, among other things, oversight and legislation relating to foreign assistance, strategic planning and agreements, and international law and its enforcement.

The delegation was told AGOA comes with stringent responsibilities which beneficiary nations must strive to uphold. Premier Winde reassured stakeholders while in the USA of the provincial government’s deep commitment to the rule of law – a key eligibility criteria to remain within AGOA – and is vehemently opposed to Russia’s illegal and brutal invasion of Ukraine. “The WCG has a very clear position on Russia and the war in Ukraine,” provincial Finance and Economic Opportunities Minister, Mireille Wenger, said during the meeting. Premier Winde added, “We are willing to work with all USA partners who share our priorities of job creation and inclusive, meaningful economic transformation. The USA Government should take into account how Western Cape businesses, companies and more importantly workers have benefited from AGOA.”

Having made the WCG’s case at the House of Representatives, the delegation moved onto the upper house of Congress – the Senate – meeting with representatives from Delaware Senator Christopher Coons’ office. The meeting included advisors to Senator Coons who outlined that there is a need to reauthorise AGOA in its entirety as soon as possible, ahead of the 2025 renewal period.

While Senator Coons has an affinity for South Africa, he was also disappointed at recent developments involving the national government and the apparent non-alignment of the South African government regarding the Ukrainian invasion. Premier Winde noted this adding, “SA-USA relations go back decades and have firm foundations in the ideals of free market policies. Many workers have benefited in both countries from trade relations with the USA being the 2nd largest export market for South Africa totaling R192.99 billion in 2021. We will make every effort to protect our country’s re-authorisation to AGOA but demonstrating our commitment to all eligibility criteria.”

The provincial government delegation also held a series of meetings with international financial institutions such as the World Bank and International Monetary Fund to further deepen relations, as well as private sector investors eager to expand their business operations or looking to invest in the Western Cape’s burgeoning and resilient economy. Stakeholders from the US Chamber of Commerce enthusiastically indicated that they support South Africa’s re-authorisation with AGOA. The US-Africa Business Center, which is affiliated with the chamber, led an information-sharing session between the WCG delegation and companies that are either already doing business in the Western Cape or are considering establishing trade ties with the province.

Among those who attended the session were representatives from a broad range of companies, including:

• Pepsico
• John Deere
• AT&T

They raised issues around the functionality of the province and the country’s ports, energy, crime and red tape. The Premier told the session, “In the Western Cape we work hard to foster good governance to build the foundation for economic growth. As much as local businesses are the lifeforce of our economy, opening our economic doors to international companies is equally as important to fuel job creation. That is why we are a solution driven government already working on making the Western Cape resilient and the easiest place to do business in Africa.”

A separate meeting with officials from a number of USA Government Departments and agencies, such as the Department of Energy, Department of Commerce and Department of State, focused on energy. Representatives undertook to assist the Western Cape’s drive towards energy security, emphaisising the need to incorporate renewable energy sources. “If we build strong partnerships with our USA allies, we will be able to reduce rolling blackouts in our country and in doing this further solidify our trade ties,” conclude Premier Winde.