The August 4-6 U.S.-Africa summit sees 50 African presidents and prime ministers gathering in Washington this week.
The aim of the summit includes an increase in trade and investment with an estimated $1 billion in new business deals expected to be initiated.
According to a money web article, South African presidency spokesman Mac Maharaj said, "The summit provides an opportunity to promote increased cooperation. On Africa-U.S. trade and investment as well as cooperation on peace and security, infrastructure development and other key sectors,"
When looking at growth in African imports and exports China has increased its trade form $127 billion to $198.5 billion over the past two years while the U.S. has dropped from $113 billion to $99.5 billion.
In May 2000 President Clinton signed off on the Africa Growth Opportunities Act (AGOA).
The Act offers tangible incentives for African countries to continue their efforts to open their economies and build free markets.
Maharaj said it was estimated that about 95 percent of South African exports gained access into the U.S. duty-free through AGOA.
The renewal of the act due in 2015 carries great importance for South Africa with over 600 U.S. companies being active in the country.
According to Minister Rob Davies the South African Minister of Trade and Industry who will be attending the summit, renewing the act would have a positive effect on investor confidence.
Matthew Klynsmith earned a business administration diploma at CTI in Cape Town, South Africa. He now works at Strategic Options as an associate partner. To read more reports from Matthew Klynsmith, Go Here Now.
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