How the “African Growth and Opportunities Act” Promotes Global Dealings with Africa
By Zachary Avina, B.S. in Business Management and Victor T. Madubuko, SPHR, GPHR
Why Africa? The business “layman” may be confused by this idea that Africa is a hub of the growing global economy; however, the facts are becoming less and less elusive to the general populace. An astounding $19.140 billion in aggregate exports to the U.S. from Africa in 2015 alone (AGOA 1) surpasses the typical stereotype that one may have about the African continent.
Global business trends have continued to increase since the “boom” of the internet and the accessibility (or rather, necessity) of widespread commerce. Aside from the undeniable fact that businesses are ever-increasingly transitioning to multinational business models in some aspect or another, the trend towards Africa is often at the forefront of this transition. But why?
Explore options for business growth in Africa:
The answer is the “African Growth and Opportunities Act” (AGOA) of May 18, 2000. In pertinent part, this piece of legislation “significantly enhances market access to the U.S. for qualifying Sub-Saharan African (SSA) countries, [so long as each country] work[s] to improve its rule of law, human rights, and respect for core labor standards” (AGOA 1). Remaining in effect today, this act has procured a significant amount of business opportunities and benevolence between the U.S. and Africa.
Under the AGOA, the African continent has been able to bolster its commercial and business resume, leading to greater amounts and ease of trade, and an increased likelihood of investment from other countries. In essence, Africa is prime real estate for the business executive to ponder. For how much longer, one can only speculate.
Business growth resources for Africa:
Photo credit: How to End a Job Interview – ManagerLink
managerlink.monster.com877 × 547Search by image
“About AGOA.” AGOA.Info. African Growth and Opportunities Act, 2016. Web. 15 Feb.