Agoa initiative expands to northern Uganda

Agoa offers a huge market for African products duty free and quota free into the US market.

The African Growth and Opportunity Act initiative is trickling down to the grassroots with a number of companies producing products for the US market.

In the once war-ravaged northern Uganda, several companies are setting up businesses in the region where they produce bags, hats, necklaces and bangles for the lucrative US market.

Agoa offers a huge market for African products duty free and quota free into the US market.

Gulu District vice chairman, Mr Jara Mapenduzi, said the enterprises involved in the trade have socially and financially impacted and improved livelihoods of some of the most vulnerable women in northern Uganda.
“Our people are able to benefit and move from a dependency syndrome to learning and working,” Mr Ojara said.

Mr Ojara was meeting the Senior Presidential Advisor on AGOA, Ms Susan Muhwezi in Gulu at the weekend.

Ms Muhwezi toured various enterprises engaged in the production of products under the AGOA initiative.

However, some managers of the companies under the initiative complained of high taxes, which they say is affecting their cost of production.

“We are not benefiting from Agoa of taxes,” Sean Galaway, the Country Director Krochet Kids Uganda, an enterprise that produces hats for the US market, said.

Ms Muhwezi said the government is trying to make sure everybody benefits from the opportunity given to Uganda.

“But I am wondering why you are paying taxes. I want to assure you that my unit and the Ministry of Trade will address the challenges of taxes and sourcing of local raw materials” Ms Muhwezi said.

Ms Muhwezi addressed workers of MEND, a social enterprise geared towards improving the quality of life of women in Gulu who were affected by the northern Uganda armed rebellion.

For more than a decade, Agoa has been the US government’s signature trade initiative with sub-Saharan Africa; helping diversify exports, create jobs, reduce barriers to trade, and expand economic opportunities for the region’s population.

With more than 6,000 products receiving duty-free treatment when exported to the US, Agoa has helped generate jobs through trade and investment opportunities.