Under the law, USA exports to sub-Saharan Africa have tripled. The USA has an
interest in enhancing its influence and strengthening relations with African partners.
Sub-Saharan African countries undergo an annual review of their statutes. Several
criteria are also evaluated, including good governance, market economy, elimination of
trade barriers and promotion of US investments, development of anti-corruption
mechanisms and protection of labour-related laws. The countries eligible to participate
are determined based on these parameters.
In addition to this annual assessment, to enter the US market, products must meet
certain requirements regarding their origin. In particular, they must originate from one
or more AGOA beneficiary countries, be imported directly from a beneficiary country
into the USA and be 100% grown, produced or manufactured in one or more
beneficiary countries.
In 2007, Cabo Verde graduated as a middle-income country and has benefited from
this programme by being able to access a range of financing alternatives. Despite the
recognition that the AGOA programme represents an important step towards the
aspirations of an island and archipelagic country, there has been much discussion about
its use. The reports point out that exports of Cabo Verdean products to the US market
have fallen far short of expectations. Indeed, within the Economic Community of West
African States (ECOWAS), only Gambia and Guinea-Bissau performed less well than
Cabo Verde (Montezinho, 2015).
Economists, policymakers and business associations sought to understand the reasons
for the poor results and recommended strategies for improving exports under the
programme. The President of the Sotavento Chamber of Commerce, Jorge Spencer
Lima, said that the main barriers for Cabo Verdean companies include difficulties in
terms of costs and bureaucracy, as well as language barriers. In Spencer Lima's
opinion, everything happens in English, which in many cases, Cabo Verdean business
people do not understand or master. João Alvarenga, economist, believes that the main
problem is related to the Cabo Verdean workforce because it is not minimally prepared
for the quality criteria required by the program, adding that the country, historically,
has a trade deficit. This is because it imports more than it exports. AGOA would be an
opportunity to reverse this scenario, at least with the USA (Montezinho, 28 June 2015).
The former Minister of Tourism, Investment and Business Development, Leonesa
Fortes, believes that Cabo Verde has a small number of companies producing for
export. She also argues that it is necessary to further strengthen the industrial fabric in
order to take advantage of AGOA. The first step to reverse this scenario was to create
institutions specialised in these areas, namely the Institute for Quality Management
(IGQ), created by Resolution no. 41/2010 of 2 August. In addition, the state should
continue to work on developing industrial and trade policies so that Cabo Verdean
companies can organise themselves and acquire greater production capacity (Expresso
das Ilhas, 12 September 2015).
According to current Minister for Industry, Commerce and Energy, Alexandre Monteiro,
eighteen years after the promulgation of AGOA, Cabo Verde has not known how to take
advantage of this window of opportunity. The archipelago is still making initial steps
towards creating an environment to produce and export more competitive goods and
services. Ana Lima Barber, president of Cabo Verde Trade Invest between 2016 and