Term: AFRICAN GROWTH AND OPPORTUNITY ACT [AGOA]

An American Act which allows certain African countries to export to America duty free. Altogether, 37 countries in Africa benefit from this piece of American legislation, but South Africa, because it has the largest economy, benefits the most. In the 2016 re-negotiation of AGOA, the Americans were insistent that we allow 65 000 tons of bone-in chicken to be imported from America into South Africa every year if we were to keep AGOA. This has had an impact on the chicken industry which is already under pressure from cheap imports from Europe and Brazil. AGOA has been very important for the motor industry and a major factor in the establishment of significant motor manufacturing in South Africa by motor car companies. Partly because of AGOA, Ford Motor Company has decided (in November 2017) to invest a further R3bn into its Silverton factory here. This will increase the capacity of that facility from 110 000 ford rangers to 127 000 and make it highly probable that the factory will be used to produce the new Ford “Raptor” which is due to be in production from 2019.

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