Harnessing AGOA for Business Growth: South African Entrepreneurs Eye Global Markets - Cape Town Today
Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Harnessing AGOA for Business Growth: South African Entrepreneurs Eye Global Markets

3 mins read
a g

South African entrepreneurs Michelle and Mo Mokone, founders of Mo’s Crib, are using the African Growth and Opportunity Act (AGOA) to enter the US market with their range of handmade home decor items. Their eco-friendly merchandise is made from materials such as recycled plastic and various grass species, with the siblings committed to preserving the environment and fostering the growth of their community. Mo’s Crib plans to expand beyond the US, with an aim to generate 20 new jobs within the next three years, while their success serves as a model for other small businesses seeking to make a positive impact.

South African siblings Michelle and Mo Mokone, founders of the home decor enterprise Mo’s Crib, are exploring international trade by tapping into the United States market. Their range of handmade items consists of handwoven baskets, planters, trays, wall decorations, and outdoor home accessories, all crafted with an emphasis on environmental sustainability. In 2021, they opted to take advantage of the African Growth and Opportunity Act (AGOA), a United States Trade Act implemented in May 2000.

AGOA: A Gateway to the US Market

AGOA enables 35 eligible Sub-Saharan nations to export 1,835 tariff lines duty-free to a major consumer market in the US. Michelle, Mo’s Crib’s Operations and Supply Chain Director, states that their merchandise is made from distinctive materials like ultra-strong Polyvinyl Chloride plastic reclaimed from landfills and South African construction sites, along with various grass species. This eco-friendly approach stems from the siblings’ dedication to preserving the environment.

Michelle states that Mo’s Crib’s mission is to “utilize South African artisans’ expertise to raise awareness about the most urgent environmental and social challenges faced today.” Each sale contributes to economic and educational opportunities for South African men and women while reducing plastic waste in Pretoria’s natural resources. The sisters are not only committed to protecting the environment, but also to fostering the growth of the people in their community.

Expansion Goals and Community Impact

Michelle reveals their ambition to create opportunities and generate a significant impact. They plan to broaden their presence beyond the US, entering new markets like Europe and the United Arab Emirates. The company has established an internal target of generating 20 new jobs within the next two to three years. To handle the compliance and administration process, a forwarding agent supported them in booking numerous containers.

Since 2021, Mo’s Crib has sent a total of eight containers to the US, with plans to send two more by the end of 2023. The company also regularly ships a container to fulfill their online store orders, which is managed through a warehouse in New Jersey. Although shipping is relatively costly for a small, 100% self-funded business, Michelle acknowledges that they have gained considerable market access through AGOA. At present, US orders make up 60% of their total revenue.

Securing AGOA’s Future for South Africa

South Africa is striving to obtain a renewal and extension of AGOA through direct interactions between government and business representatives, as well as with members of the US Senate and Congress across party-political lines. Ebrahim Patel, the Minister of Trade, Industry, and Competition, informed Members of Parliament during a recent parliamentary briefing that South Africa’s involvement in AGOA benefits neighboring countries via shared value chains.

Mo’s Crib’s inspiring success story demonstrates how small businesses can expand and prosper in international markets by leveraging opportunities like AGOA. The Mokone sisters’ commitment to sustainability, community development, and global market expansion serves as a model for other entrepreneurs seeking to make a positive impact through their ventures.

What is AGOA?

AGOA stands for African Growth and Opportunity Act, which is a United States Trade Act implemented in May 2000. It enables 35 eligible Sub-Saharan nations to export 1,835 tariff lines duty-free to a major consumer market in the US.

How is Mo’s Crib taking advantage of AGOA?

Mo’s Crib, a South African home decor enterprise, is using AGOA to enter the US market with their range of handmade eco-friendly home decor items made from recycled plastic and various grass species.

What is Mo’s Crib’s mission?

Mo’s Crib’s mission is to “utilize South African artisans’ expertise to raise awareness about the most urgent environmental and social challenges faced today.” Their commitment is not only to protecting the environment but also to fostering the growth of the people in their community.

What are Mo’s Crib’s expansion goals?

Mo’s Crib plans to expand beyond the US, entering new markets like Europe and the United Arab Emirates. The company has established an internal target of generating 20 new jobs within the next two to three years.

How is Mo’s Crib shipping their products to the US?

Mo’s Crib has sent a total of eight containers to the US, with plans to send two more by the end of 2023. They also regularly ship a container to fulfill their online store orders, which is managed through a warehouse in New Jersey.

What percentage of Mo’s Crib’s revenue comes from US orders?

At present, US orders make up 60% of Mo’s Crib’s total revenue.

What impact is Mo’s Crib making on their community?

Mo’s Crib’s commitment to sustainability and community development is reflected in their dedication to reducing plastic waste in Pretoria’s natural resources while contributing to economic and educational opportunities for South African men and women.

How is South Africa working to secure AGOA’s future?

South Africa is striving to obtain a renewal and extension of AGOA through direct interactions between government and business representatives, as well as with members of the US Senate and Congress across party-political lines. Ebrahim Patel, the Minister of Trade, Industry, and Competition, informed Members of Parliament during a recent parliamentary briefing that South Africa’s involvement in AGOA benefits neighboring countries via shared value chains.

Previous Story

Africa Oil Week and Green Energy Summit: Unlocking Africa’s Energy Potential

Next Story

Collaborative Efforts to Shape the Future of Employment Programs: EPWP Phase 5 Indaba

Latest from Blog

The Art of Tea Pairing: A Culinary Revolution in South Africa

Tea pairing is the exciting new trend in South Africa that brings together different teas and foods to create delicious combinations. Just like wine, tea can enhance meals from breakfast to dessert, making every bite even more enjoyable. Brands like Tetley are making it easy for everyone to explore this tasty adventure by suggesting specific pairings, like bold black tea with chocolate cake or refreshing green tea with sushi. As more people embrace tea pairing, they’re discovering a whole new world of flavors that make dining experiences fun and vibrant.

Fuel Price Dynamics: A Beacon of Relief Amidst Global and Local Instability

Good news for drivers in South Africa! Fuel prices might drop in May, giving some muchneeded relief to those feeling the pinch at the pump. This possible decrease comes from falling international oil prices and a stronger rand, which makes fuel cheaper. Recent data shows that there’s been a significant overrecovery in fuel prices, hinting at a second month of savings. As people fill up their tanks, they can feel a glimmer of hope amidst the ups and downs of the economy and global trade.

The 7-1 Split: Revolutionizing Rugby or Skewing Fairness?

The 71 split strategy in rugby shakes things up by putting seven forwards and just one back on the bench. This bold move, introduced by coach Rassie Erasmus, aims to boost a team’s strength late in the game but has sparked fierce discussions about fairness in the sport. Some love the way it changes the game, while others worry it might hurt the spirit of rugby and put too much pressure on the backs. As teams like France and Scotland weigh in, this tactic is pushing rugby into a debate about sticking to old ways versus trying new things. Will this strategy shape the future of rugby, or will it fade away? Only time will tell!

The Hidden Dangers of Marathon Running: A Tale of Fitness and Fatality

Marathon running is thrilling but can hide serious dangers, especially for older runners. Heart conditions, dehydration, and heatstroke can strike unexpectedly, even in those who seem fit. The tragic case of Taryn Armour, who died during a race, reminds us of these risks and the importance of regular health checkups. While many complete marathons safely each year, it’s essential to listen to our bodies and seek medical advice. Celebrating physical endurance must also include caring for our health and knowing our limits.

The Art of the Family Road Trip: Crafting Unforgettable Easter Memories

Easter is a wonderful time for family road trips, filled with fun and new memories! To make the journey enjoyable, plan your route with exciting stops, choose a good time to leave when kids might nap, and pack plenty of snacks and games. Involve kids in planning and play classic car games to keep everyone entertained. With a little creativity and preparation, your road trip can turn into an unforgettable adventure filled with laughter and joy!