Kenya’s CSs Amina Mohammed, Adan Mohammed, and US’s John Kerry root for AGOA extension

Foreign Affairs and International Trade CS Amina Mohamed at the World Bank Headquarters in Washington DC during a conference on AGOA, US Secretary of State John Kerry gave a keynote address. [PHOTO: DAVID OHITO/STANDARD]

WASHINGTON DC: The biggest Africa leaders’ summit kicked off in Washington DC Monday with US Secretary of State John Kerry hosting a delegation of African trade ministers from over 50 countries.

Kenyan delegation at the high powered meeting was led by the Cabinet Secretary for Foreign Affairs and International Trade Ambassador Amina Mohammed and Industrialization minister Adan Mohammed.

Amina said Kenya would press for the reauthorisation of the Africa Growth and Opportunities Act (Agoa) to boost trade volumes and inter regional trade in Africa.

Amina said Agoa had created investment opportunities which should be scaled up to open investments and employment in Kenya.

She said Agoa's programme goals to promote regional integration and partnerships aimed at increasing trade and investment opportunities between Kenya, East Africa and the US were laudable.

Adan called on American investors to come to Kenya as a way to ease movement of goods and services to US destinations saying it was easier for the US citizens to sell goods from Kenya and to travel back and forth easily because Visa rules created constraints for many Kenyan traders.

"It is the time to industrialize. No country has ever developed through selling raw goods at less value. We must push for processing of goods to meet standards and market demands in the US," Adan added.

Kerry accompanied by Deputy Chair of the Africa commission Erastus Mwencha, US Trade representative Ambassador Michael Froman and Word Bank President Jim   Yong Kim addressed the need to expand and deepen US African economic ties.

Kerry reiterated President Barack Obama's Administration commitment to renewal of and unlocking its full potential beyond what has been attained so far in 14 years of Agoa era by the African countries.

"We believe the US will be a vital catalyst in the growth in Africa's transformation to to a bright future. The US is committed to strengthening it commercial engagement in Africa because Africa is the new Centre of growth," Kerry said.

"We have seen imports from Agoa nations growing by 300 percent. Whether it is cocoa and cashew nuts from Ghana or textiles from Mauritius and Kenya or petrochemicals from Angola, Agoa has served as a catalyst for greater trade and prosperity and promoted protections for the African's workforce.

Kerry singled out few industries, lack of capacity, bureaucracy, poor infrastructure as some factors impeding trade and investments in Africa.

Despite the bottlenecks, Agoa, Kerry maintained it is still one of the best tools vital for pushing forward the dramatic transformation seen today in Africa.

He called for policy reforms, to reduce barriers and boost competitiveness through comprehensive investment and trade strategies to make Africa the next centre of global growth.

The USaid trade and investment hubs are located in Accra Ghana, Gaborone, Botswana and Nairobi, Kenya. The trade hubs are implementing innovative initiatives to reduce bottlenecks along major trade corridors.

USaid has supported customs reforms through a common customs software platform allowing customs officials to communicate virtually across borders.

The meeting looked at the most important lessons after 14years of experience with Agoa arguing that tariff preferences alone are not enough to promote African trade, economic growth and development.

Agoa partners are facing significant constraints that prevent them from fully utilizing the market access provisions under Agoa.

Said Kerry, "President Obama Administration believes for Agoa to achieve its maximum potential it must be linked to to a comprehensive trade, investment and development strategy aimed at minimizing supply-side constraints to trade, building trade and human capacity, improving the private sector enabling environment and driving demand.