Senate Finance Committee Hearing on the African Growth & Opportunity Act (AGOA)

Florizelle B. Liser, President and CEO of the Corporate Council on Africa, emphasized the critical importance of renewing the African Growth and Opportunity Act (AGOA) in her testimony before the Senate Finance Committee on June 5, 2024. She highlighted Africa’s rapid population growth and the continent’s efforts to leverage this demographic shift for economic development through private sector investment and global partnerships. Liser noted significant recent U.S.-Africa engagements, including the State Visit of Kenyan President Ruto and the U.S.-Africa Business Summit. AGOA, since its inception in 2000, has been a cornerstone of U.S.-Africa economic relations. Liser underscored the strategic importance of AGOA, advocating for its renewal for at least ten years to support African market access and attract investment. She discussed the transformative potential of the African Continental Free Trade Agreement(AfCFTA) in creating a unified market, enhancing intra-African trade, and establishing regional value chains, which would bolster AGOA’s effectiveness. Liser suggested that U.S. trade and investment strategies should evolve to focus on priority sectors identified by African institutions—automotives, agribusiness, transportation, and pharmaceuticals—while supporting enabling sectors like energy and ICT. She recommended a shift from country-specific analyses to broader regional and sectoral engagement, promoting American investment and trade with Africa. Additionally, Liser called for expanding strategic tools beyond AGOA to address specific sectors such as critical minerals and ICT, proposing tailored support and policy reforms. She advocated for strategic agreements and protocols, such as digital trade initiatives, to strengthen U.S.-Africa economic ties. Liser concluded with a plea for the timely renewal of AGOA to avoid disrupting key industries like textiles and apparel, which require long lead times. She proposed non-controversial modifications to AGOA, such as including North Africa, adjusting graduation criteria, and changing review periods to every three years to provide greater certainty and encourage investment. Liser urged bipartisan and bicameral cooperation to pass the AGOA renewal bill promptly in 2024.