AGOA, African trade and development

Nairobi is currently playing host to delegates from all over the Continent and the US attending the 8th AGOA conference. I had time yesterday to listen to Sec. Clinton’s and President Kibaki’s speeches (President Kibaki, please fire your speech writers and hire a speech therapist). Despite the embarrassing delivery, President Kibaki’s speech struck the right tone. The US should open up more to African business and Kenyans (and Africans in general) should be quick to take advantage of the existing trade opportunities – even as they continue to tackle governance problems (which, contrary to Premier Odinga’s comments, is a major road block to African development).

I felt like Clinton’s comments were a bit too vague. It is high time the US stopped treating trade with Africa as  something that only happens at the pleasure of Washington (for more on this see Aid Watch). The one thing that hit home in the speech was the call for an increase in intra-continental trade. The last time I checked this accounted for a paltry 10% of all trade on the Continent. Poor transcom infrastructure is to blame. But political risk (read deplorable governance) is also to blame. I hope the many African delegates present took this point seriously.

I don’t know what deliverables come out of such AGOA gatherings so I will wait till the end of the conference to comment on its relevance. For now I am happy that United Parcel Services (UPS) has pledged to buy staff uniforms from the Kenyan market.