JOHANNESBURG — The Congress of South African Trade Unions (Cosatu) has expressed staunch support for the renewal of the African Growth and Opportunity Act (AGOA) as South Africa grapples with high unemployment rates. Cosatu President Zingiswa Losi underscored the federation’s commitment to job preservation during a recent briefing.
According to South African Government News Agency, Losi emphasized the importance of AGOA during a media briefing at the Nasrec Expo Centre where the AGOA Forum is taking place. She noted the significant number of jobs — approximately 450,000 — that have been created due to the trade relationship between Africa and the United States, spanning sectors such as mining, manufacturing, auto manufacturing, clothing, agriculture, and jewellery, all bolstered by the act.
Losi elaborated on the need for South Africa to maintain its AGOA membership and highlighted the federation’s role in advocating for the renewal of the legislation with the US sister federation. She stressed the crucial timing of the renewal, urging the Biden administration to act before the US elections next year.
Additionally, Losi pointed to the necessity of diversifying trade partners to mitigate the country’s unemployment crisis, which currently affects 42% of the labor force, including 60% of the youth population. She articulated the federation’s strategy for expansion, stating that simultaneous development of trade and investment with prominent partners like the European Union, China, Japan, and within the BRICS Trade Union Forum, is essential.
Addressing infrastructural and social challenges, such as energy shortages, crime, corruption, and the need for improved rail and infrastructure, was also mentioned as critical for enhancing South Africa’s trade capabilities.
During the same forum, President Cyril Ramaphosa addressed concerns over the impact of trade restrictions on South African products like steel, aluminum, and citrus fruit on the utilisation rates of AGOA. He expressed hope that the current forum would set the stage for addressing these issues and emphasized the need for targeted investment efforts to fully leverage AGOA’s potential benefits for South Africa.