Cape Town – Michelle and Mo Mokone, co-owners of Mo’s Crib, a company specialising in handmade home décor products, seized an opportunity to enter the US market in 2021 by utilising the African Growth and Opportunity Act (AGOA).
AGOA allows 35 qualifying Sub-Saharan African countries to export nearly 2 000 tariff lines to the US duty-free.
Michelle, who is the Operations and Supply Chain Director at Mo’s Crib, said their products are crafted using distinctive materials, including highly resilient polyvinyl chloride plastic sourced from South African landfills and construction sites, as well as a variety of grasses.
“Our mission is to leverage the craftsmanship of South African artisans to help accelerate awareness about the most pressing environmental and social issues faced today.
“With every sale, we are creating economic and educational opportunities for South African men and women, while diverting plastic waste from the natural resources of our hometown of Pretoria,” Michelle said.
[Read] It was a drive to explore international trade that saw entrepreneurial sisters, Michelle and Mo Mokone, grabbing an opportunity to venture into the United States of America market https://t.co/jRlY5Pxcnx pic.twitter.com/4r7A1zFh0j
— @SAgovnews (@SAgovnews) October 9, 2023
The Mokone sisters also seek to expand beyond the USA into markets like Europe and the United Arab Emirates, with plans to create 20 new jobs in the next few years.
“We are striving to create opportunities and make a meaningful impact. We would like to grow our footprint beyond the USA and enter new markets, such as Europe and the United Arab Emirates. We have our own internal plan to create 20 new jobs within the next two to three years,” Michelle said.
She said a forwarding agent assisted them with the compliance and administration process to booking various containers.
“Since 2021, we have shipped a total of eight containers to the USA. We are on track to ship two more containers before year end of 2023. We also regularly ship a container to fulfil our orders for our online store, which is fulfilled through our warehouse in New Jersey.
“Although shipping is relatively expensive, especially for a small business that is 100% self-funded, we have benefited from the AGOA Act through significant market access. Currently, the USA orders constitute 60% of our overall revenue,” she said.
Despite shipping costs and self-funding challenges, Mo’s Crib has seen substantial market access and revenue growth due to AGOA. Currently, 60% of their revenue comes from US orders.
South Africa is working to secure a renewal and extension of AGOA, recognising its benefits to neighbouring countries and fostering shared value chains.
Follow African Insider on Facebook, Twitter and Instagram
Picture: X/@SAgovnews
For more African news, visit Africaninsider.com
Compiled by Betha Madhomu
