TGI advocates review of African Growth, Opportunity Act to boost inter continental trade

TGI Group, a leading conglomerate in Africa’s agricultural sector, has advocated the need for a review of the African Growth, Opportunity Act (AGOA) to boost fairness and free trade in Africa.

Farouk Gumel, the Executive Director of TGI Group, made this call as he featured in a panel session themed, ‘Future of U.S.-Africa and Trade Investment: AGOA and beyond, at the U.S.-Africa Business Summit.

Gumel, in a statement issued by the company on Thursday, said that the dynamics of global trade have changed since the AGOA legislation was renewed almost a decade ago.

He said, “The uniqueness of no duty in exporting to the U.S. no longer exists because other big players like China, India and the U.A.E. have come into Africa offering the same benefits if not better than what we get from AGOA. To upgrade AGOA, there is a need to see what the other players are doing to make export seamless.

“Free trade is not new in Africa. It has always existed for hundreds of years, but what does not exist is fairness in cross-border trading. Just like the E.U., we need to have an African Ideology where we look inward to produce and export with Africa.”

He disclosed that the company has actively implemented initiatives aimed at driving sustainable development across Africa. Notable among these is the Argungu Outgrower Expansion Programme, a collaboration with the USAID-funded West Africa Trade and Investment Hub, aimed at boosting rice production in Nigeria.

“With operations spanning over 15 countries and a diverse portfolio of products, TGI Group remains committed to creating a positive economic, environmental, and social impact. Leveraging locally sourced raw materials and state-of-the-art manufacturing facilities, the company continues to forge sustainable business partnerships aligned with the goals of the U.S.-Africa Business Summit.

“At TGI, we engage in every aspect of the value chain, from seed multiplication to the dining table. This is because we adopt a problem-solving approach to our business model,” stated Gumel.

He stressed TGI’s dedication to understanding local communities and cultural nuances, ensuring shared prosperity and sustainability. “While we are involved in seeds, fertilisers and crop protection inputs, we do not engage in land ownership. We adopt a community-centric approach, recognizing cultural sensitivities in rural areas.

“When partnering with communities, we provide inputs while they undertake cultivation. Upon harvest, they have the option to sell to us or others, ensuring a mutually beneficial relationship. Even if they choose to sell to the open market, albeit rarely, we will still get it from the local aggregator,” Gumel explained.

Speaking on Nigeria’s agricultural policies, Gumel praised the country’s commitment to employment and community empowerment. “Nigeria, often misunderstood globally, boasts the continent’s most robust agricultural policy,” he remarked.