AGOA: Building a Decent Work Model for Trade and Development
Developing knowledge and strengthening capacity around sectoral and trade policies are potential game-changers for decent jobs, commerce and investment in Africa.
26 August 2015
ADDIS ABABA (ILO News) – Rethinking and developing knowledge for a positive impact of sectoral and trade policies on employment could lead to a better Decent Work model for trade, partnerships and development in Africa, stated ILO Assistant Director-General and Regional Director for Africa, Aeneas Chapinga Chuma, at the 2015 AGOA Forum in Libreville, Gabon.
“Develop global and country-level knowledge on how to strengthen the impact of sectoral and trade policies on productive and decent employment”, is the way forward, stated Mr Chuma, including in the areas of agriculture and rural development, infrastructure and energy with a focus on private sector development.
The Regional Director for Africa of the International Labour Office (ILO), who was attending the ministerial sessions of the 2015 African Growth Opportunity Act (AGOA) Forum, addressed participants of a VIP luncheon organized by the US Department of Labour on “AGOA’s Inclusive Growth: Building a Decent Work Model for Trade and Development”.
“Africa is committed to Decent Work”, Chuma underscored during this strategic session on the future of US-Africa trade and investment while calling it a “concrete step” towards a global partnership for Decent Work.
“Trade plays a crucial role in the endeavour to ensure that economic transformation and sustained growth can occur in Africa”, he emphasized with a focus on this year’s theme: “AGOA at 15: Charting a Course for a Sustainable U.S.-Africa Trade and Investment Partnership”.
The AGOA program was recently extended by the United States for the next ten years. In 2015, about 40 countries are eligible for trade preferences under AGOA but to be eligible, a sub-Saharan African country must protect labour rights, demonstrate progress towards the development of a market-based economy and be open to U.S. trade and investment.
“We welcome the 10 year extension of AGOA and the opportunity it creates to generate more and better jobs in Africa”, The ILO Senior Executive stressed.
AGOA has facilitated new investment, created jobs, and cultivated business linkages that created new markets opportunities by offering African entrepreneurs the opportunity to improve their competitiveness and participate in global supply chains.
“Lesotho has been a beneficiary of the programme since 2010 when it was set up to establish Lesotho as an ethical sourcing destination for garment production and to strengthen the position of the country’s exports in global markets through compliance with national labour law and international labour standards”, Aeneas Chapinga Chuma explained advocating for an effective trading partnership.
Better Work Lesotho, an initiative of the ILO and the International Finance Corporation (IFC), supported by the US government, has been working to improve conditions for factory workers by monitoring adherence to core ILO labour standards and national labour laws, and improving the relationship between workers and factory management.
“Impact assessments show that the programme has positively influenced productivity and quality and profitability whilst workers’ rights and wellbeing have improved”, Chuma concluded. To date, Better Work Lesotho has negotiated employee health and sanitation inspections with 22 garment factories in the country.
AGOA encourages African countries to diversify their exports into non-traditional and higher value products such as apparel, footwear, and processed agricultural products. Officially, the Program has created an estimated 300,000 direct jobs in beneficiary sub-Saharan African countries. Total African exports under AGOA have quadrupled since the program’s inception. Meanwhile U.S. trade with Africa has doubled since the initiative was launched, creating an estimated 120,000 American jobs.
“Develop global and country-level knowledge on how to strengthen the impact of sectoral and trade policies on productive and decent employment”, is the way forward, stated Mr Chuma, including in the areas of agriculture and rural development, infrastructure and energy with a focus on private sector development.
The Regional Director for Africa of the International Labour Office (ILO), who was attending the ministerial sessions of the 2015 African Growth Opportunity Act (AGOA) Forum, addressed participants of a VIP luncheon organized by the US Department of Labour on “AGOA’s Inclusive Growth: Building a Decent Work Model for Trade and Development”.
“Africa is committed to Decent Work”, Chuma underscored during this strategic session on the future of US-Africa trade and investment while calling it a “concrete step” towards a global partnership for Decent Work.
“Trade plays a crucial role in the endeavour to ensure that economic transformation and sustained growth can occur in Africa”, he emphasized with a focus on this year’s theme: “AGOA at 15: Charting a Course for a Sustainable U.S.-Africa Trade and Investment Partnership”.
The AGOA program was recently extended by the United States for the next ten years. In 2015, about 40 countries are eligible for trade preferences under AGOA but to be eligible, a sub-Saharan African country must protect labour rights, demonstrate progress towards the development of a market-based economy and be open to U.S. trade and investment.
“We welcome the 10 year extension of AGOA and the opportunity it creates to generate more and better jobs in Africa”, The ILO Senior Executive stressed.
AGOA – “Better Work” Lesotho
AGOA has facilitated new investment, created jobs, and cultivated business linkages that created new markets opportunities by offering African entrepreneurs the opportunity to improve their competitiveness and participate in global supply chains.
“Lesotho has been a beneficiary of the programme since 2010 when it was set up to establish Lesotho as an ethical sourcing destination for garment production and to strengthen the position of the country’s exports in global markets through compliance with national labour law and international labour standards”, Aeneas Chapinga Chuma explained advocating for an effective trading partnership.
Better Work Lesotho, an initiative of the ILO and the International Finance Corporation (IFC), supported by the US government, has been working to improve conditions for factory workers by monitoring adherence to core ILO labour standards and national labour laws, and improving the relationship between workers and factory management.
“Impact assessments show that the programme has positively influenced productivity and quality and profitability whilst workers’ rights and wellbeing have improved”, Chuma concluded. To date, Better Work Lesotho has negotiated employee health and sanitation inspections with 22 garment factories in the country.
AGOA encourages African countries to diversify their exports into non-traditional and higher value products such as apparel, footwear, and processed agricultural products. Officially, the Program has created an estimated 300,000 direct jobs in beneficiary sub-Saharan African countries. Total African exports under AGOA have quadrupled since the program’s inception. Meanwhile U.S. trade with Africa has doubled since the initiative was launched, creating an estimated 120,000 American jobs.