The
introduction of AGOA has also created an opportunity for the export of
additional products like textile and apparel as well as leather products.
Ethiopia’s
utilization of the opportunity is still too low to claim the realization of
AGOA’s objective of bringing economic growth and development as well as
integration to the regional and global economy satisfactorily. In terms of
utilization of the AGOA’s opportunity, there is a lack of diversity across
sectors: the textile and leather sectors represent the largest share of the
total export performance to the U.S under this Act.
Despite
that Ethiopia had not benefited from The AGOA as expected, recently there is an
encouraging progress which can be considered as blooming 62% increase from 2017
to 2018. This one-year tremendous increase is not by its desired objective
to be achieved or the only opportunity that America gave but instead it is
encouraging because Ethiopia realized and started using the big opportunity.
The
main problems that are raised are Ethiopia does not have enough volume and
Diversity of AGOA products that can benefit to its full potential in addition
to that the country is considered to be less comfortable for doing business in
world due to the Bureaucracy and difficulty in accessing Financial support
credit facility and also the financial system is not Modern enough.
Ethiopian the government in addition to diversifying and inviting foreign investors to invest
in exportable products, it launched an initiative plan called the growth and
transformation plane 1 and 2(GTP1 and GTP 2) which aimed at transforming the
countries agrarian economy to
Manufacturing and service sectors which will increase the number of
products for export and AGOA.
Belayneh, Z (2020). The Role of African Growth and Opportunities Act (AGOA) To strengthen cooperation between Ethiopia and America. Afribary.com: Retrieved April 16, 2021, from https://afribary.com/works/the-role-of-african-growth-and-opportunities-act-agoa-to-strengthen-cooperation-between-ethiopia-and-america
Zelelew, Belayneh. "The Role of African Growth and Opportunities Act (AGOA) To strengthen cooperation between Ethiopia and America" Afribary.com. Afribary.com, 12 Nov. 2020, https://afribary.com/works/the-role-of-african-growth-and-opportunities-act-agoa-to-strengthen-cooperation-between-ethiopia-and-america . Accessed 16 Apr. 2021.
Zelelew, Belayneh. "The Role of African Growth and Opportunities Act (AGOA) To strengthen cooperation between Ethiopia and America". Afribary.com, Afribary.com, 12 Nov. 2020. Web. 16 Apr. 2021. < https://afribary.com/works/the-role-of-african-growth-and-opportunities-act-agoa-to-strengthen-cooperation-between-ethiopia-and-america >.
Zelelew, Belayneh. "The Role of African Growth and Opportunities Act (AGOA) To strengthen cooperation between Ethiopia and America" Afribary.com (2020). Accessed April 16, 2021. https://afribary.com/works/the-role-of-african-growth-and-opportunities-act-agoa-to-strengthen-cooperation-between-ethiopia-and-america