The East Africa Trade and Investment Hub (the Hub) is the one-stop shop in the East African region for businesses and national governments seeking to take advantage of the African Growth and Opportunity Act (AGOA). The Hub supports Ethiopia, Kenya, Madagascar, Mauritius, Rwanda, Tanzania, and Uganda to increase their exports to the U.S. through AGOA.
By the end of the project, the Hub expects to increase non-oil exports to the U.S. by 40 percent. In its first two years of operation, the Hub supported more than $150 million in AGOA exports to the U.S.
In collaboration with key institutions, the Hub develops and tailors trade enhancing activities to specific countries and sectors, as informed by national AGOA strategies. It also identifies and works with private sector associations and companies to foster impactful trade and investment in the region.
The focuses its support in the following areas:
- Country-level strategy development and implementation
- Market-linkages support
- Firm-level technical assistance
- Information dissemination and training
Download the Hub's AGOA infographic
Download the Hub's AGOA flyer
Textile and Apparel
Apparel accounts for the largest volume of African trade to the U.S. under AGOA (some 90% of non-oil exports) and is a key sector in East Africa in terms of employment and growth potential. East Africa has become a focal point for African sourcing, a trend that is expected to continue as global sourcing patterns change.
Watch our sourcing videos:
Home Decor & Fashion Accessories
This sector includes young fashion designers and entrepreneurs whose projects often have a social compliance component. African designers are continually wowing U.S. brands with their talent.
The cut flowers industry is an important sector for several countries in East Africa, chiefly Kenya and Ethiopia. Kenya is the top exporter of roses to the European market, and both Kenya and Ethiopia are eyeing expansion into new markets, including the U.S.
A developed leather industry in Ethiopia makes that country a significant shoe producer and the top African exporter of shoes to the U.S. under AGOA. Kenya is looking to revitalize its industry to competitively compete in export markets for footwear, handbags and other accessories.
Opportunities in niche processed foods (and beverages) exist in East Africa. Products from the region such as dried fruits, specialty coffees and teas, fruit juices, jams and sauces have found export markets, including the U.S.
Support national AGOA strategy/action plan development
The recent extension of the AGOA legislation until 2025 calls for all AGOA-eligible countries to develop National AGOA Strategies. The Hub is providing technical support to governments to develop national AGOA strategies and implementation of action plans. The strategy documents constitute road maps for countries to maximize their utilization of the benefits provided by AGOA. AGOA strategies are a crucial tool to allow countries to target key sectors and product categories for focus and support to increase trade with the U.S.
The Hub has facilitated the development of the following AGOA strategies
Rwanda AGOA Action Plan
Madagascar AGOA Strategy
Tanzania AGOA Strategy
The Hub will continue providing support to the Ministries of Trade to assist in the implementation of the AGOA strategies.
Trade shows, buyer missions and B2B forums
The Hub promotes direct business linkages by proactively organizing and supporting business to business events, trade shows, and buyer missions.
The Hub aims to increase the export volumes of individual firms by linking them with importers in foreign markets. The collective outcomes are reflected in Hub-facilitated trade. Trade shows, buyer missions and B2B events increase regional EAC exports and international exports. They also build economies of scale and create a foundation for integrated global supply chains.
Read about some of the buyer mission and trade shows:
Superior Uniform Group buyer mission
Source Africa trade fair
Sourcing at Magic Trade Show
Targeted Firm-level Technical Assistance
The Hub provides targeted firm-level technical assistance to enhance export competitiveness of eastern African firms. Firms engaging in linkages need to be export-ready with quality products that meet buyers’ needs and are compliant with technical standards. Firms need access to financial products to support the export cycles; should have capacity to handle export procedures and export logistics; and should be able to effectively engage with buyers.
Enhanced AGOA Export Preparedness and AGOA Information Dissemination
The purpose of AGOA export preparedness is to educate and to build the capacity of the public and private sectors on AGOA, leading to greater uptake of AGOA export opportunities.
The Hub has successfully organized several AGOA preparedness workshops in the region. Read about them below.
Kenya AGOA Preparedness Workshop
Rwanda AGOA Preparedness Workshop
Uganda AGOA Preparedness Workshop
Madagascar AGOA Preparedness Workshop
Build Capacity of Key Partners and Trade-Support Institutions
The Hub is working with the American Chamber of Commerce (AmCham) in Madagascar and the Ethiopian Horticulture Producer Exporters Association to support an increase in exports to the U.S. under AGOA.
The Hub has provided a grant to AmCham Madagascar to assist in the development of an AGOA Resource Center. Among other services, the resource center provides Malagasy exporters with U.S. market requirements and information, and supports business linkages. Want to learn more? Watch AmCham Madagascar's new resource center video.
AGOA FAQ ASK AN AGOA EXPERT AGOA - WHAT YOU SHOULD KNOW AGOA GENERAL AGOA RULES OF ORIGIN VISIT OUR AGOA EXPORTER DIRECTORY AGOA PRODUCTS LIST
Related Blogs and Resources
Published on June 14, 2017
Kenya Airways has moved a step closer to operating direct flights to the United States after the Department of Transportation (DOT) granted it the first set of licences.
The national carrier has received “exemption authority” from the DOT, allowing it to commence flights to the US provided it secures clearance from the Federal Aviation Administration (FAA) and other applicable State agencies.
The DOT has also tentatively granted Kenya Airways a Foreign Air Carrier Permit (FACP), which is again subject to clearance from several US security, aviation and border agencies. Read more. Source | Business Daily
Published on May 02, 2017
The ailing textile sector has been handed a lifeline, with the proposed increase in the amount of goods that manufacturers based in the special economic zones can sell locally.
President Uhuru Kenyatta said that the apparel manufacturers operating from the export processing zones (EPZs) will now be allowed to sell up to 40 per cent of their goods locally, a significant improvement over their current local market quota.
“We want to increase the current quota of 20 per cent that is allowed for the local market up to 40 per cent so that the local apparel manufacturers can employ more Kenyans,” Mr Kenyatta said. Read more. Source | Business Daily
Published on April 24, 2017
American roasters are expected to raise coffee purchases from Kenya by a quarter to Sh3.5 billion annually after the country showcased its produce in the ongoing symposium in Seattle, US.
Coffee Directorate made a pitch for Kenya’s specialty coffee during the exhibition to have the US, which pays a premium price for the commodity, increase its uptake 25 per cent. America buys seven per cent of Kenya’s annual export of 46,000 metric tonnes but it pays highly compared to the other top buyers. Read more. Source | Business Daily
Published on April 19, 2017
AGOA 101 Uganda is an export guide published by the East Africa Trade and Investment Hub (the Hub). The guide seeks to ease the challenges faced by Ugandan entrepreneurs by highlighting the step-by-step process businesses should take to export from Uganda to the U.S duty-free under the African Growth and Opportunity Act (AGOA).It covers the export process for Hub-focused sectors under AGOA including: Fashion Accessories and Home Décor, Textile and Apparel, Footwear, and Specialty Foods and products.
The guide will assist Ugandan businesses to take advantage of AGOA, thereby increasing export levels, and give U.S buyers a wider range of products from the region.
Published on February 22, 2017
There is a shared sense that international trade has great potential to contribute to growth and poverty reduction. There are several examples of countries in which integration into the world economy was followed by strong growth and a reduction of poverty, but evidence also indicates that trade opening does not automatically bring growth.
The question therefore arises why the effects of international trade have been so different among countries. If the developed world is dependent on the developing world for raw materials for manufacturing, how is it that the developing world is still poor and cannot compete in international markets? Read more. Source | Business Day
Published on February 21, 2017
With retail in the strained position it’s presently in and a promotional cycle that’s got stores stuck for selling product at full price, the way forward for retailers will be to look for duty savings.Knowing that, and highlighting its duty advantages to both the U.S. and the EU markets, African apparel manufacturers are looking to improve their presence and their offering.
To undertake both efforts, the Africa Pavilion will bring together 80 exhibitors from all over the continent in an effort to feature the region’s “next-generation apparel sourcing,” at Sourcing at Magic in Las Vegas Feb. 20-23.
Trade experts have said sourcing in Africa could quadruple over the 10 years of the African Growth and Opportunity Act (AGOA), which affords eligible African countries duty free sourcing to the U.S. AGOA was renewed in 2015 and will remain in place until 2025 when it will come up for renewal consideration again. Read more. Source | Sourcing Journal
Published on January 12, 2017
The Uganda Coffee Development Authority (UCDA) is set to embark on registering coffee farmers across the country in a bid to document the activity for proper planning.Currently, there is no conclusive documented data that show the number of coffee farmers in Uganda and the prominent coffee types in Uganda. Mr Emanuel Lyamulemye, the UCDA managing director, said this exercise will start as a pilot project at the end of this month in Mukono District and later be rolled out to the entire country.
He revealed that in executing this exercise, they intend to use elite graduates in the community, who will use a newly developed application on smart phones to register farmers.The exercise will capture a farmer’s bio data, location, farming practice, acreage, the number of trees, types of coffee being grown, the age of the coffee trees and other basic details. Read more. Source | Daily Monitor
Published on December 14, 2016
The South African Minister of Trade and Industry, Dr Rob Davies, has emphasised the importance of export diversification and industrialization in Africa.
He was speaking in Addis Ababa, Ethiopia recently, where he was moderating the Africa Trade Week Panel Discussion on Africa Growth and Opportunity Act (AGOA) and the Continental Free Trade Area (CFTA). The session considered AGOA implementation over the remaining period of the legislation granting the trade preference up to 2025. It also reflected on the future of Africa-US trade relations beyond AGOA based on the type of trade arrangements that would support Africa’s regional integration agenda. Minister Davies said African countries need to increase their utilisation of the trade preferences granted by the United States (US) under AGOA to attract Foreign Direct Investments into priority sectors that are eligible under AGOA and that can favour industrialisation. Read more. Source | Biz Community