Ramaphosa calls for a lengthy Agoa deal to incentivise investors
President was addressing about 2,000 delegates attending the three-day Agoa meeting in Nasrec, Johannesburg
03 November 2023 - 14:55
by AMANDA KHOZA
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President Cyril Ramaphosa addressed the Agoa summit at Nasrec on Fri Picture: AMANDA KHOZA
President Cyril Ramaphosa has called for the early renewal and lengthy extension of the African Growth and Opportunity Act (Agoa), saying it will incentivise investors.
“We would like you to look at the extension or renewal of Agoa for a sufficiently lengthy period for it to act as an incentive for investors to build new factories on the African continent,” the president said on Friday.
“We believe there is great value in retaining all beneficiary countries to build on the emerging regional value chains making a significant contribution to the industrialisation of the African continent.”
He was addressing about 2,000 delegates attending the three-day Agoa meeting in Nasrec, Johannesburg. During their deliberations they will explore ways of enhancing the partnership which, among other things, allows duty-free access to the US market, and will discuss possibly renewing it for another 10 years. It is due to expire in 2025.
Speaking to media after opening the sitting, Ramaphosa said: “Many businesses would like to have forward planning and many of them have five-year plans, and so it’s not inconceivable that we should think about an Agoa that could be extended for much longer rather than to be reviewed every year.”
He said businesses would then be able to make long-term investment plans.
“They can build factories with confidence that they will have offtake agreements because what often happens with business is if you know you have a market, your offtake agreement becomes a lot easier to build more capacity, factories and more products.
Speaking about how SA’s energy crisis could affect the pact, Ramaphosa said: “We are addressing the energy challenges and security we face and I have spoken to some of the manufacturers that produce steel and aluminium and they have said they have been able to recalibrate their manufacturing processes within the constraints.”
As the country moves out of the energy constraints and challenges, there will be more electricity available on the grid, he said.
“They will then find it much easier to produce goods and beneficiate because we want our continent to be able to mine, produce minerals and beneficiate them on site and manufacture products that are needed and can be bought in any part of the world.”
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Ramaphosa calls for a lengthy Agoa deal to incentivise investors
President was addressing about 2,000 delegates attending the three-day Agoa meeting in Nasrec, Johannesburg
President Cyril Ramaphosa has called for the early renewal and lengthy extension of the African Growth and Opportunity Act (Agoa), saying it will incentivise investors.
“We would like you to look at the extension or renewal of Agoa for a sufficiently lengthy period for it to act as an incentive for investors to build new factories on the African continent,” the president said on Friday.
“We believe there is great value in retaining all beneficiary countries to build on the emerging regional value chains making a significant contribution to the industrialisation of the African continent.”
He was addressing about 2,000 delegates attending the three-day Agoa meeting in Nasrec, Johannesburg. During their deliberations they will explore ways of enhancing the partnership which, among other things, allows duty-free access to the US market, and will discuss possibly renewing it for another 10 years. It is due to expire in 2025.
Speaking to media after opening the sitting, Ramaphosa said: “Many businesses would like to have forward planning and many of them have five-year plans, and so it’s not inconceivable that we should think about an Agoa that could be extended for much longer rather than to be reviewed every year.”
He said businesses would then be able to make long-term investment plans.
“They can build factories with confidence that they will have offtake agreements because what often happens with business is if you know you have a market, your offtake agreement becomes a lot easier to build more capacity, factories and more products.
Speaking about how SA’s energy crisis could affect the pact, Ramaphosa said: “We are addressing the energy challenges and security we face and I have spoken to some of the manufacturers that produce steel and aluminium and they have said they have been able to recalibrate their manufacturing processes within the constraints.”
As the country moves out of the energy constraints and challenges, there will be more electricity available on the grid, he said.
“They will then find it much easier to produce goods and beneficiate because we want our continent to be able to mine, produce minerals and beneficiate them on site and manufacture products that are needed and can be bought in any part of the world.”
Ramaphosa said SA was already on that journey.
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