Mr. Kobina Tahir Hammond, Ghana’s Minister of Trade and Industry, is advocating for United States (US) investors to engage in mutually beneficial trade ventures with Ghanaian counterparts through the government’s industrialization agenda.
He highlighted the 1D1F (One District, One Factory) initiative as a prime area for potential partnership, emphasizing its attractive incentive packages. During an official visit to Washington, DC, the Minister made this appeal while visiting the offices of the Corporate Council on Africa (CCA) and the US Chamber of Commerce.
In discussions with both organizations, Mr. Hammond aimed to familiarize himself with their operations and priorities, seeking opportunities for collaboration and support.
Furthermore, the Minister disclosed the government’s efforts to attract garment manufacturers to Ghana, citing Dignity DTRT as a successful example. He noted the company’s establishment of a cutting-edge garment factory and its partnership with an American importer.
However, Mr. Hammond voiced concern over the impending expiration of the Africa Growth and Opportunity Act (AGOA) and urged the Chamber to advocate for its renewal. Ghanaian textile and garment dealers fear the potential impact on their businesses if AGOA expires.
AGOA, enacted in 2000, has been pivotal in US economic policy and commercial engagement with Africa. The act grants duty-free access to the US market for over 1,800 products from eligible sub-Saharan African countries. These nations must demonstrate progress toward establishing market-based economies, rule of law, political pluralism, and due process to maintain AGOA eligibility. Additionally, they must eliminate trade barriers, enact anti-corruption measures, reduce poverty, and uphold human rights to qualify for AGOA benefits.
“By providing new market opportunities, AGOA has helped bolster economic growth, promoted economic and political reform, and improved U.S. economic relations in the region,” the website notes.
Thirty two countries are eligible for AGOA benefits in 2024.
In 2015, Congress passed legislation modernising and extending the programme to 2025.
For her part, the President and Chief Executive Officer of the Corporate Council for Africa, Ms. Florizelle (Florie) Liser, highlighted the longstanding relationship of her entity with Ghana, noting that the President Nana Addo Dankwa Akufo-Addo, had once been the guest of the Council.
She informed the Minister that the Council hosted the Annual US-Africa Business Summit, and that of 2024 would take place in Dallas, Texas.
Ghana’s President has been invited to attend it.
She said a key feature of this year’s event is a collaboration with the Millennium Challenge Corporation (MCC) on a special 20th anniversary celebration on the margins of the summit in Dallas, where they would be hosting former President George Bush, who established the MCC.
Ghana is one of the first countries to have a compact from MCC.
On the Minister’s request for more advocacy on the extension of AGOA, she said the Council had already engaged with Members of the House’s Ways and Means Committee, (which is the trade committee at the US House of Representatives), on the subject and advocated for its extension.
She explained that this was very crucial because about three years ago, Ghana doubled its exports of apparel under AGOA due to the establishment of the Tema Textiles enclave.
She highlighted the importance of AGOA to Ghana.
At the meeting with U.S. Chamber of Commerce, Mr. Rick Wade, Senior Vice President of Strategic Alliances and Outreach at the US Chamber of Commerce, said the Chamber was working on an initiative dubbed: “Advance with Africa”, a roadshow to reach out to the 2.6 million black-owned businesses in the US to invest in Africa, particularly, Ghana.
He assured the Minister that the US Chamber of Commerce was ready to work with him to strengthen business ties between US and Ghana.
Dr Guevera Yao, Vice President, U.S.-Africa Business Center of the U.S. Chamber of Commerce, said the Biden Administration prioritised the diaspora as a group capable of transforming Africa.
The administration has thus set up the President’s Council on African Diaspora Engagement (PAC-ADE) tasked with giving the President advice on how to engage the Diaspora to do more in Africa.
The CCA, a Business Association with a three-decade legacy, comprises members from both the United States and Africa, spanning small and medium enterprises (SMEs) to multinational corporations. Its core mission is to champion US trade, investments, and business engagement with Africa.
