|
|
| Tax free zones can boost AGOA gains in Africa - Researchers
|
|
|
| |
Kampala, Uganda (PANA) -
Lack of an effective partnership between
African private sectors and governments is denying African
exporters from earning maximum benefits trading in the US under
the African Growth and Opportunity Act (AGOA), a researcher said
Monday.
Nimrod Waniala, the Ugandan Director for Private Sector Trade
Policy and Capacity Building Project, said that the private
sector in Africa needed to put in considerable efforts in
building capacity for the exports effort and the state should
come up with policy changes which would help the growth of these
firms.
He said that countries like Kenya and South Africa have export
processing zones (EPZ) where input materials are not taxed.
"This brings the cost of production down. Our (in Uganda) costs
of production are still very high. Of course, transport from the
seaports also raises our costs. These need to be overcome,"
Waniala told PANA in Kampala.
"The key issue (in Uganda) is to pass the EPZ law and to have
EPZ's established. The private sector is anxious for this to be
done. In that way, we will get investments relocated to some of
these areas, then costs of production may come down," Wainala, a
trade policy analyst, explained.
"Although AGOA is a big opportunity for countries like Uganda and
all her geographical partners in the Great Lakes region, there is
still much to be done by entrepreneurs.
"It's a large market (the US) but the requirements are also
fairly stringent. For example, if you are producing cloth, it
must be done to specifications of the US market," he noted.
He said research has revealed that Uganda has the potential to
produce cotton products, but the infrastructure is not
sufficiently in place.
With leather products, Uganda has no footwear that can go to the
international market. Agricultural products like flowers have
been exported, but mainly to Europe, so there is a need to expand
to the US market as well, he added.
Wainala said that an expansive industrial site set up by
government in Namanve, 14 km east of Kampala, was a boost to
export preparedness because of the constant supply of utilities
like power and water.
"Namanve is a big step towards preparing the country for AGOA.
The government has also taken another step by appointing an
adviser on AGOA," he noted.
He advised local entrepreneurs to learn how to do business with
Americans, to know their markets and the initial points of
contact.
|
| |
| Kampala - 08/04/2002 |
| |
|
|