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The United States of America imported goods worth $86 billion from Africa in 2008. Close to 80% of these imports were in the form of crude oil and other strategic minerals. As AGOA delegates converge in Nairobi, it is important that African countries reevaluate the benefits they need from this trade pact.

Of its 8 years history, one would say the best that Africa gets out of the AGOA initiative is its eligibility criteria. African countries have to meet criteria set by U.S.A in order to benefit from AGOA. The criteria includes; having market based economies, rule of law and pluralism; elimination of barriers to U.S.A trade and investment; protection of intellectual property; combating corruption; povert reduction policies ; increase availability of healthcare and educational opportunities; protection of human rights and workers' rights and elimination of certain forms of child labor.

The reality is that the 38 African countries that are said to be AGOA eligible are still far from attaining the set criteria. Sub Sahara Africa is experiencing more political upheaval than ever before. Take Kenya for instance; its electoral process plunged the country into chaos in early 2008. Todate, it's hard for one to pin point whether rule of law and political pluralism serve the common citizenry. The 8th AGOA forum therefore ought to serve as a time of reflection by African elites on how they can utilize the U.S.A set criteria for the benefit of the continent.

On the trade aspect; it is clear that whereas the trade volume statistics may appear good, the impact is far from successful in making African exports benefit people on the continent. Over 7,000 items struggle to fit into a 20% window offered in the $86 billion dollar deal. For instance, it is clear that African countries are yet to develop the technology to mine oil and other sub-surface wealth in general. It is likely that the companies that benefit more from the 80% crude oil "export window" are American. It is U.S.A exporting African goods to itself and simply offering jobs to truck drivers, mechanics, cooks, and secretaries. A similar scenario is played out at the export processing zone (EPZ) in Kenya; where according to officials, 75% of the companies are not Kenyan but they do offer jobs to an estimated 32,000 Kenyans.

The multiplier effect or spin-offs from wages, rent and bills paid to the country are clearly a positive addition to the economy. However, it falls short of preparing people on the continent to join the knowledge sector which is always driven-not-by formal education in itself, but through individuals engaging in value addition activities. That partly explains why some countries exporting crude oil are yet to even develop oil refining techniques to serve their domestic energy needs. For Kenya, in spite of having EPZ that has high demand for cotton, the country produces only a tenth of its estimated 380,000 bale capacity.

African countries should not just sit back and focus on trade volume charts. They must take advantage of the link with U.S.A to prepare their peoples' abilities to exercise their creativity. AGOA offers a vital lesson that a country has to develop its own strategic interests and relate with others on such terms. Unfortunately, Africa is yet to develop an interest in itself; Kenya is yet to develop its own interest. It follows therefore that it will be difficult to offer real value to U.S.A.

A re-evaluated AGOA initiative will respect rules of free trade as opposed to the current setting where a bigger market dictates to weaker markets on what ought to be exported to it. The best gift from the relationship facilitated by AGOA to Africa is more on the lessons than current skewed trade towards natural resources approach. Africans ought to domesticate the eligibility criteria and utilize it in their regional market deals such as COMESA among others.

By James Shikwati

James Shikwati james@irenkenya.org is Director, Inter Region Economic Network Source: James Shikwati

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