The African growth and opportunity act and the textiles and apparel industry in Kenya and South Africa

Abstract

This thesis presents an analysis of the economic impact of the African Growth and Opportunity Act (AGOA) in the textiles and apparel industry in Kenya and South Africa, and answers three consecutive questions. First, has AGOA been successful in reinforcing Kenya and South Africa’s reform efforts? Second, has AGOA been successful in facilitating the integration of Kenya and South Africa’s economy into the global economy? Finally, has AGOA been successful in promoting employment and poverty reduction in Kenya and South Africa? Using the textiles and apparel industry of the two countries as a case study, it was realised that AGOA has achieved much success in contributing to the reformation and integration of the economy of Kenya and South Africa into the global economy. However, it was found that AGOA’s success in promoting poverty reduction through economic activities such as trade, investment and employment in the two countries has been mixed. While AGOA has contributed positively to the promotion of economic activities in the textiles and apparel industry in Kenya, the economic problems facing the textiles and apparel industry in South Africa has been exacerbated by AGOA.

This study is important because it draws attention to the economic achievements of AGOA in the textiles and apparel industry in Kenya and South Africa.