CCA Promotes AGOA in the Congos

By Ingrid White and Tony Carroll

The Corporate Council on Africa (CCA) presented two seminars last month on export opportunities under the African Growth and Opportunity Act (AGOA) to the Republic of Congo and the Democratic Republic of Congo. U.S. imports from both countries is comparatively low, at about $200 million per year each. This trade is heavily skewed to petroleum related products with small amounts of wood, folkloric items and minerals. Although both economies have long been exporters of primary commodities, this data reflect the moribund status of the export sectors due to infrastructure weakness and civil strife. 

With support from the U.S. Embassy Brazzaville and the Republic of Congo’s Ministry of Commerce, Consumption, and Supply, the first AGOA seminar was held on May 19th and 20th in Brazzaville. Attendance included nearly 100 participants and a number of local and national media. The conference was opened by Her Excellency Mrs. Motumbo, Minister of Commerce, Consumption, and Supply; The Honorable U.S. Ambassador to the Republic of Congo Robin Sanders; and the president of the National Chamber of Commerce. The event’s discussions commenced with substantive presentations of the AGOA legislation, current AGOA trade statistics, and related trade protocols by Mr. Tony Carroll, Managing Director of Washington-based consulting group Manchester Trade. Additional sessions discussed U.S. marketing options, specifically in relation to the AGOA sectors of textiles, agriculture, and hand-loomed and folkloric items substantive presentations focused on the AGOA legislation itself, AGOA trade statistics, and related trade protocols. 

Following a video presentation of CCA’s AGOA Professional Development program administered to Africans over the past year, there was an enthusiastic discussion on ways that such trade capacity programs could benefit the Republic of Congo. Particularly strong support was given to the suggestion of reopening an American Cultural Center in Brazzaville to facilitate increased English language proficiency within the business community. In response to the recommendations of the visiting AGOA experts, the Director General of the National Chamber of Commerce agreed to engage in developing a unified business environment and create strong public-private partnerships. 

The AGOA Conference in Kinshasa was held on May 22nd and 23rd. Her Excellency Madame Faida Mitifu, Ambassador of the Democratic Republic of Congo (DRC) to the U.S., presided over the opening which included welcoming remarks from the Honorable Aubrey Hooks, U.S. Ambassador to the DRC and Her Excellency Ngalula Wafwana, DRC’s Minister of Industry, Commerce, and Small and Medium Enterprises. Mr. Carroll began the conference with a presentation of basic AGOA legislation and the current trade statistics under AGOA. The audience seemed most affected by the trade success of the textiles and apparel industry under AGOA – a sector many remembered as once having thrived in the country. Discussion included a number of technical and trade capacity resources available to DRC companies, such as the recently established AGOA Linkages (ALINC) program in COMESA. 

The afternoon sessions focused on issues related to the development of export trade, including finance, transportation and logistics, and legal regulatory issues. The finance panel featured a presentation by the operations manager of Stanbic Bank in Kinshasa. This session was particularly important as the banking sector is new to the majority of Congolese businesses. The need to reduce the high cost of transport, especially from the capital Kinshasa, was voiced by many of the presenters. One speaker noted that a shipment from Kinshasa to the port city of Matadi is the same cost as a shipment from Matadi to the eastern U.S. port of Newark, New Jersey. A legal regulatory panel featured presentations from the legal firm of Djunga & Risasi Counselors at Law, the Office of Control Congolese, and the national Customs Office. The majority of the discussion focused on the need to respect standards in order to reach the U.S market and reduce the tax burden for international investors. 

The following day’s discussions focused on export possibilities that exist within the textiles and agriculture sectors. Although positive about the general opportunity that AGOA represents for the country, the administrative director general of the largest private employer in the country, UTEXAFRICA, stated the need for government assistance to the textile industry to help increase trade capacity. The final panel focused on the potential of the agriculture industry in DRC. The discussion began with an overview of the current regulation and regulatory controls that the U.S. has in place for imported products. Representatives from the National Coffee Bureau and the Congolese entrepreneur Victor Ngezayo of Groupe Ngezayo discussed the potential for agriculture exports. 

Ambassador Mitifu closed the conference by requesting that a committee of private and public sector representatives be put in place to continue the dialogue on some of the issues raised during the conference. She also reiterated the recommendation that a USAID-funded Global Competitiveness Hub be established in Kinshasa to cover the Central African region. CCA looks forward to supporting both countries in their future endeavors under AGOA.

Ingrid White is the Program Manager for the AGOA Professional Development Program at CCA.