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E0.5 TRILLION ORGANIC PRODUCTS MARKET FOR ESWATINI

28/09/2018 04:18:00 BY KWANELE DHLADHLA

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MBABANE – Are you an organic farmer or have the zeal to produce gluten free food? Then you have a E0.5 trilllion (US$50 billion) market waiting for you in the United States.

Southern Africa Trade Investment Hub Africa Growth Opportunity Act (AGOA) Exports and Linkages Specialist Cosmas Mamhunze has advised Eswatini businesses to maximise on the available opportunity to export organic foods to the US.

Speaking during a sensitisation workshop for more local businesses to tap into the available opportunities under AGOA, where about 6 500 products can be exported into the US duty free market, Mamhunze disclosed that there was a huge demand for organic foods in the US which needs to be tapped into.
Mamhunze explained that the growing demand for speciality foods was substantiated by the absorption of specialty food from E1.27 trillion (US$127 billion) in 2016 to E1.4 trillion in 2017 (US$140 billion).

“There is a E500 billion (US$50 billion) market for organic and gluten free foods not only in the US but the European Union as well,” disclosed Mamhunze during the workshop convened at Sibane Hotel on Wednesday.
The exports specialist strongly emphasised on the need for local businesses, which intend exporting their produce to the US, to familiarise themselves with the compliance standards and certification procedures.

Mamhunze further lamented at the fact that not many businesses in the kingdom export their produce to the US yet the kingdom also enjoyed duty free access to one of the world’s largest economies, the US.

He pointed out that it was of vital importance for the country to ensure that it finalised the development of an AGOA utilisation strategy that would outline precise implementation procedures as to how the kingdom will ensure that it maximises all available opportunities under the trade agreement.
Swaziland Investment Promotion Authority’s (SIPA) Sibusiso Mnisi informed the nearly 30 business delegates that plans were well underway to formulate the Eswatini AGOA utilisation strategy.
“We are hopeful that a draft AGOA utilisation strategy would have been collated by the end of this year,” said Mnisi.
Mamhunze also revealed that plans to avail a grant programme for all countries under AGOA had been shelved for now until such time when US authorities and stakeholders decided otherwise.
Aware
“I am aware that two companies had applied for funding under the grant programme unfortunately it has been put on hold,” said Mamhunze.
Coley Anderson, who provided a lecture on the certification procedures for companies that may be interested in taping into the AGOA market, strongly emphasised on the need for entities to have a reputable US based agent to handle registration and certification on their behalf. She encouraged businesses to register their businesses in the US to avoid disappointments when they try to export their produce.
“It is important to ensure that you adhere to the set standards in order to fully enjoy the benefits of AGOA,” advised Anderson.
SIPA Acting Chief Executive Officer (CEO) Hanalora Strydom said a number of products were currently being exported to the US under AGOA. She said these include sugar, specialty foods, and handicraft together with textile and apparels.
“Having fully regained AGOA, we are now focusing on diversification of Eswatini export products with the assistance of USAID Southern Africa Trade and Investment Hub. We are exploring sectors covering food, beverages, cosmetics and drug exports which will be additional to the already successful sugar and textile exports to the US,” said Strydom.
Eswatini lost AGOA eligibility in 2015 due to concerns over restrictions on the freedoms of peaceful assembly, association, and expression. However, U.S. President Donald Trump restored trade benefits to Gambia and the kingdom in December 2017.
According to the official AGOA website, it is explained that AGOA provides duty-free market access to the US for qualifying Sub-Saharan African beneficiary countries by extending duty-free preferences previously available under the US Generalised System of Preferences. Virtually all GSP tariff lines are (also) denoted ‘D’, meaning that they are AGOA eligible. AGOA goes beyond this, by allocating ‘D’ classification to more than 250 additional tariff lines.
Furthermore, AGOA provides duty-free access to textiles and apparel subject to the wearing apparel provisions, having their own requirements and rules of origin. For example, apparel made in a lesser developed beneficiary country is granted duty-free access, even when the fabric used in such manufacture is sourced from third countries. Textiles are also eligible provided that they are manufactured in the AGOA beneficiary countries. Altogether 6,421 tariff lines (status November 2016) are granted AGOA duty-free preferences. This number can, however, change from time to time.