KEPSA on the future of U.S.-Africa trade & investment partnerships

As the African Growth and Opportunity Act (AGOA) nears its expiration in 2025, concerns about the future of U.S.-Africa trade and investment partnerships are growing. CNBC Africa's Tabitha Muthoni recently sat down with Victor Ogalo, Deputy Chief Executive Officer of the Kenya Private Sector Alliance (KEPSA), to delve into the challenges and opportunities that lie ahead. The conversation shed light on the need for renewal of AGOA and the implications for investors and job creation in Africa. Ogalo emphasized the importance of predictability in the investment environment, highlighting the uncertainty surrounding the renewal of AGOA and the potential impact on companies exporting to the U.S. under the agreement. As the U.S. approaches a presidential election, the future of AGOA remains uncertain, with investors seeking assurance and stability in trade relations. Ogalo underscored the significance of early renewal to mitigate the risks associated with prolonged decision-making processes. He emphasized the long-term nature of investment decisions and the critical role of policy continuity in fostering economic growth and job creation in Africa. The discussion also focused on the need to align AGOA with the evolving global and African economies. Ogalo highlighted the importance of remodeling AGOA to support trade and development effectively. He emphasized the need for a level playing field globally and proposed enhancements to ensure that AGOA aligns with the current and future trade dynamics between the U.S. and Africa. Ogalo called for a review of the product categories covered under AGOA and stressed the importance of building productive capacity in African countries to maximize the benefits of the agreement. Furthermore, the conversation touched upon the shift towards viewing Africa as an equal partner in trade relations, rather than just a beneficiary. Ogalo emphasized the potential for American investors to partner with African countries in key value chains identified under the African Continental Free Trade Area. He highlighted sectors such as agro-processing, pharmaceuticals, and automotive as areas of opportunity for collaboration and investment. Ogalo proposed regulatory harmonization to facilitate investment across the continent and called on American investors to seize the opportunity to engage with Africa's emerging markets. Overall, the discussion underscored the importance of early renewal of AGOA, strategic enhancements to support trade and development, and the shift towards viewing Africa as an equal partner in trade relations. By fostering stronger partnerships and promoting investment in key sectors, the U.S. and Africa can navigate the evolving trade landscape and unlock new opportunities for growth and development.