AGOA OFFERS LITTLE HOPE FOR AFRICA

Enterprise in Africa
The recent African Growth Opportunity Act meeting held in Washington has been a source for much concern and debate within many African governments and the U.S. Congress. Mpho Malie of Lesotho referred to AGOA as "a matter of life and death" ("Life or Death," Embassy Row, World, June 14). This certainly is not a true account of the real problem African countries face. One of the provisions, due to expire in 2007, is that countries must produce apparel from cotton grown in Africa if they are to continue enjoying the benefits of AGOA. Countries are complaining that 2007 is too soon and that they need more time.
Enterprise in Africa
The solution for AGOA-eligible countries lies in developing more competitive, vertically integrated production of cotton to textiles and the apparel industry if they are to continue exporting apparel to the United States.
Farmers in many African countries have abandoned growing cotton because of unpredictable prices, thanks to U.S. cotton subsidies.
AGOA was intended originally to benefit small- and medium-size enterprises as well as large businesses and state-owned enterprises. However, most of the AGOA benefits have only attracted foreign firms benefiting from the cheap and abundant labor.
If African countries are serious about being real players in the global trading system, they must realize, first and foremost, that a conducive investment climate is key. Countries need to focus on fighting corruption, investing in transport infrastructure and encouraging private-sector financing.
But the biggest lesson from all this is that there is a need for African governments to diversify enterprises and markets and avoid overreliance on good will from external policies over which they have no influence.