15-11-04

Petroleum products dominated Sub-Saharan Africa exports to the US under the African Growth and Opportunity Act (AGOA) last year.

A report by the US Department of Commerce reveal that petroleum products accounted for 80 % of all the AGOA exports. Exports from sub-Saharan Africa also rose by 45 % from $ 17,891 mm (Sh 152 bn) in 2002 to $ 25,644 mm (Sh 208 bn) last year, while imports from the US to the region increased marginally.

"US exports to Sub-Saharan Africa rose 14.4 % to $ 7 bn (Sh 560 bn), due to increased sales of aircrafts, vehicles, computers and telecommunications equipment," says the report.

US exports mainly went to Ethiopia, Equatorial Guinea, and Eritrea while imports were mainly from the AGOA eligible countries.

"This figure includes duty-free imports from AGOA-eligible countries under both the pre-existing US Generalized System of Preferences (GSP) and the expanded AGOA," says the report. Textile and apparel are also exported to the US under the preferential duty terms. For yet another year, Nigeria, Angola and South Africa dominated trade with the first two exporting large volumes of fuel products to the US.
“AGOA textile and apparel imports increased by almost 50 %, to $ 1.2 bn (Sh 96 bn) and agricultural products grew 13 %, to $ 241 mm (Sh 19 bn)," says the department.

However, Kenya is not classified as a major exporter to the US as total exports concentrated mainly in textiles and apparel is below 1 % of the total exports from the region.
Nigeria leads other sub-Saharan African countries in supplying 40.5 % of the goods and especially oil products to the US market. South Africa, exporting platinum, diamonds, and motor vehicles, is placed second accounting for 18.1 % of the lucrative market. Other emerging trading partners are Angola, Gabon, Code d'Ivoire and Equatorial Guinea that jointly commanding 30 %.

Kenya is grouped together with the other smaller exporters that supplied a mere 11.6 % of the products. However, woven and knit apparel that Kenyaexports to the US was the second largest exports from the region amounting to $ 1.5 bn (Sh 100 bn). Crude and non-crude oil is the major export item amounting to a whooping $ 17.8 bn (Sh 142 bn).
"Oil imports continued to dominate imports from sub-Saharan Africa with $ 17.9 bn in oil imports in 2003, accounting for 69.6 % of all US purchases," notes the department.

The US government however warns that the region continues to be marginalized in global trade.
"The marginal increase in world economic activity has been insufficient to encourage growth in Sub-Saharan Africa," observes the World undisputed super power.

Source: LiquidAfrica