ACTIF urges Kenyan textile traders to make most of AGOA

20 May '13

2 min read

African Cotton and Textiles Industries Federation (ACTIF) has urged small scale entrepreneurs of Kenya, including textile entrepreneurs, to make the most of the opportunities extended by the African Growth and Opportunity Act (AGOA) to explore the US market.

Speaking at a one day AGOA outreach meeting in Kisumu city, chief executive officer of ACTIF, Mr. Rajeev Arora said AGOA’s third country provision enables countries like Kenya to export items prepared from imported raw material to the US either duty-free, quota-free, or on preferential basis.

He said that though over 6,400 Kenyan products qualify for such an access to the US, hardly 30 products are being currently exported under the Act, according to The Star report.

He added that the textile and apparel is one of the few Kenyan sectors that have gained from AGOA. He said that the textile and clothing sector accounts for 4.35 percent of the total Kenyan exports under the Act.

Kenya exported US$ 3.94 billion, US$ 4.67 billion and US$ 5.83 billion worth of goods under the Act during 2009, 2010 and 2011, respectively.

However, in spite of the trade opportunities extended by the Act, Kenyan entrepreneurs are unable to benefit much due to high cost of transportation, irregular and costly power supply and cumbersome trade and custom rules, Mr. Arora said.

To address these issues and to enhance value addition and boost exports to the US under AGOA, ACTIF and the Ministry of Trade have jointly embarked on a nationwide outreach program to help Kenyans to make the most of the Act, he added.

Meanwhile, in view of the trade provision nearing expiry in 2015, ACTIF and other industry players are trying hard to convince the US Administration to either extend it or make it permanent.

Fibre2fashion News Desk - India

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