Musings From Abroad

US removes Uganda, Gabon, 2 others from AGOA. Here’s why

Published

5 months ago

January 3, 2024

Uganda is no longer able to export specific goods to the United States duty-free after Washington formally revoked eligibility for the African Growth and Opportunity Act (AGOA) for Uganda and three other African nations.

President Joe Biden announced his decision to delist the four nations in a decree dated December 29, stating that he had “determined” that they “do not meet the requirements” necessary to allow them to continue benefiting from the trade deal.

“Accordingly, I have decided to terminate the designations of the Central African Republic, Gabon, Niger, and Uganda as beneficiary sub-Saharan African countries for purposes of Section 506A of the Trade Act, effective January 1, 2024,” read the statement by the US President.

Uganda has “engaged in gross violations of internationally recognised human rights,” according to Mr Biden, who stated his intention to remove the four nations from the list of Agoa beneficiaries in a letter dated October 20, 2023, to the US Congress speaker.

Experts have warned that Uganda’s removal from the agreement could result in the loss of thousands of jobs, a decline in foreign exchange earnings, and low local raw material utilisation. Uganda has greatly benefited from the Agoa legislation, which was established in 2000 and allows several African nations to export numerous commodities to the US duty-free.

According to data from the US Department of Commerce, Uganda’s exports under Agoa to the US in the 12 months leading up to June 2023 were $8.2 million, or roughly 11.5% of its total exports to the US during that time, which came to $70.7 million.

About 72% of Uganda’s workforce works in agriculture, which accounts for over 80% of the country’s exports under AGOA and suggests that the expulsion could have a major negative impact on employment.

Uganda has been in Western “bad books” since President Yoweri Museveni assented to the anti-gay law passed by the Ugandan lawmakers last year. For Gabon and Niger, their removal is tied to military juntas ousting their respective elected governments.

Musings From Abroad

China’s Hailiang, Shinzoom to establish vehicle battery installations in Morocco

Published

3 days ago

May 16, 2024

Ifeoluwa Dada

Hailiang and Shinzoom, Chinese car battery makers, will establish two separate operations in Morocco as the country strives to adapt its burgeoning automotive sector to rising demand for electric vehicles, Moroccan officials announced on Tuesday.

Tanger Tech, the Moroccan northern industrial zone’s development authority, said Hailiang intends to establish a $450 million copper facility on a 30-hectare plot of land. Shinzoom, a subsidiary of Hunan Zhongke, plans to invest $460 million in an anode plant spanning 20 hectares, according to a statement.

In April, the Moroccan government approved Chinese electric battery company BTR New Material Group (835185.BJE)’s plans to build a factory in Tangier to manufacture crucial component cathodes.

Another Chinese firm, CNGR Advanced Material (300919.SZ), plans to develop a cathode plant in Jorf Lasfar, 100 miles south of Casablanca, where the government has set aside 283 hectares for electric battery sectors.

Last year, the Moroccan government and China’s Gotion agreed to examine establishing an electric vehicle battery plant in the country, with a potential investment of up to $6.3 billion. Last month, Industry Minister Ryad Mezzour told Reuters that the Gotion project was moving forward, with conversations over its footprint and location.

Morocco’s strategic location on the Strait of Gibraltar, free trade agreements with important EU and US markets, and existing automotive sector cluster all attract Chinese enterprises.

In 2023, the automotive sector topped Morocco’s industrial exports with $14 billion, a 27% increase. Morocco is home to Stellantis (STLAM.MI) and Renault (RENA.PA) production factories with an annual combined capacity of 700,000 automobiles, as well as a network of local suppliers.

Musings From Abroad

Prince Harry, Meghan treated to street-style dances in Nigeria as their trip winds down

Published

6 days ago

May 13, 2024

Ifeoluwa Dada

On Sunday, Prince Harry and his wife Meghan were treated to street-style dances in Lagos, Nigeria’s commercial capital, where they announced a partnership between their Archewell Foundation and the non-profit Giants of Africa, which utilizes sports to empower young people.

The Duke and Duchess of Sussex are making their first visit to Nigeria, where they were welcomed by the country’s chief of defence staff. The couple watched basketball practice at Ilupeju Senior Grammar School on Lagos Mainland, where Harry participated in ball-bouncing drills and shot a hoop.

“What you guys are doing here at Giants of Africa is truly amazing,” he said. “The power of sport can change lives. It brings people together and creates community and there are no barriers, which is the most important thing.”

The couple watched basketball practice at Ilupeju Senior Grammar School on Lagos Mainland, and Harry stepped on the court for some ball-bouncing drills and to shoot a hoop.

Former Toronto Raptors star Masai Ujiri, president of Giants of Africa, wished Meghan a happy Mother’s Day and said his organization was uniting communities and uplifting young people through sport, especially. Archewell Foundation and Giants of Africa will construct a basketball court in Nigeria’s capital Abuja.

“Talk about full circle again – never did I think we would be able to be here all those years later supporting the expansion of this incredible organization,” she said.
Harry and Meghan were set to round off their Lagos trip by attending a reception for a local charity. The couple live in the United States with their two children after Harry gave up working as a member of the royal family in 2020.