Ghana In AGOA's Eye

The United States Government through its State Department and the private organization, Corporate Council on Africa is organizing the 3rd Africa Growth and Opportunity Act Forum in Washington, D.C. (December 8 – 10, 2003) which has attracted ministers and Government officials from around Africa.

The editor of The Africa Journal, published by the Corporate Council on Africa, commissioned articles for its special AGOA edition with views ranging from Rosa Whitaker, first U.S. Assistant Trade Representative for Africa, to the practitioner of AGOA’s many offers.

Below is an article by Ivor Agyeman-Duah, who heads the Public Affairs Department at the Ghana Mission in Washington.

After the passage of the African Growth and Opportunity Act (AGOA) in 2000, Ghana was one of the first to receive U.S. approval of its textile visa system, and accordingly benefit from the unprecedented U.S. - Africa trade relationship. The Ghanaian government recognized the necessity of fulfilling certain economic and development criteria in order to reap the rewards of AGOA. Such criteria included improvements in capital equipment, infrastructure and the workforce. Today, the Ghanaian government supports the proposed amendments to the AGOA legislation.

Industries currently benefiting from increased trade between Ghana and the United States include the textile and garments sector and traditional and non-traditional exports, including Ghanaian handicrafts. The Committee for the Implementation of Textile Agreements (CITA) targets specific industries for export promotion and markets these sectors. CITA has identified the following products for promotion: hand loomed fabrics, hand loomed articles (including rugs, scarves, placemats and tablecloths), and handmade articles made from hand loomed fabrics.

For export purposes, CITA also determines whether an item’s shape and design are “traditionally and historically Ghanaian.” Criteria are stringent and designed to ensure that folklore articles for sale in the United States are authentic goods made in Ghana. To be labeled “traditionally and historically Ghanaian,” an article may not include metal snaps or zip fasters and must be ornamented in characteristically Ghanaian folk style. Examples of acceptable folklore items include the popular Kente Stole, Adinkra, Agabada, Batakari/Fugu, Kafan and Joromi, a men’s shirt. Since September 15, 2003, all traditional clothing produced by the major Ghanaian ethnic groups qualify to enter the U.S. under AGOA and CITA requirements.

Working to develop Ghana’s infrastructure, the Ghanaian government, through the Ministry of Trade, Industry and President’s Special Initiative, is developing 178 acres of land in the industrial town of Tema. The government is creating a Garment City with factory units to be rented out to companies by December 2003. The Ministry of Trade, Industry and President’s Special Initiative is headed by Mr. Alan Kyerematen, formerly a Director of Enterprise Africa, a UN Development Program (UNDP) organization. Until recently, he served as Ghana’s Ambassador to the United States. At full operational capacity, the Garment City will employ 70,000 people directly and 20,000 people indirectly. Mr. Kyerematen says the industry is expected to generate over US$3 billion in foreign exchange within a four-year period. The President Special Initiative on Garments and Textiles will exploit the benefits of the duty-free and quota-free market access that AGOA offers Ghanaian producers.

Meanwhile, an AGOA awareness campaign is underway throughout the country. Seminars are held in targeted locales with a concentration on rural areas. The Ministry of Trade, Industry and President’s Special Initiative organizes the campaign through its AGOA Help Desk and other local and international development institutions. The goal of the campaign is to encourage production by small and medium sized companies.

The foreign revenue AGOA statistics demonstrate a positive progression of economic benefits for Ghana. This year, traditional and non-traditional exports to the United States are expected to reach US$62.5m. This figure exceeds the US$50.4m generated in 2002 and US$42m in 2001. Investments in all sectors are highly encouraged by the government as it seeks to build on the premise of “Ghana as the Gateway to West Africa.”