African businesses are bracing for uncertainty as the continent awaits a crucial decision from the White House on the renewal of the African Growth and Opportunity Act (AGOA), the United States’ flagship trade program.
Adopted 25 years ago by the US Congress, AGOA was designed to stimulate African economies by promoting local businesses and strengthening economic ties with a region rich in potential.
Since its inception, the scheme has enabled thousands of businesses across 32 African countries to access U.S. markets duty-free, helping boost exports and create employment. Total exports under AGOA reached $8 billion in the most recent year, slightly down from $9.3 billion in previous years.
Agricultural products dominate African exports to the United States, with Nigeria and Ghana emerging as major beneficiaries. Countries such as South Africa, Lesotho, Madagascar, and Botswana rely heavily on AGOA for employment in their export-oriented sectors.
Kenya and Mauritius, with their textile, automotive, and apparel industries, are similarly dependent, while Chad, Eswatini, and Malawi also face exposure.
The program’s expiry on Tuesday has intensified uncertainty, with no official extension announced. Some analysts suggest that AGOA’s renewal may hinge on a temporary U.S. budget bill being pushed by Republicans to keep the federal government operational beyond the looming deadline.
Sources close to the White House indicate that President Donald Trump is reportedly considering a one-year extension, offering a tentative glimmer of hope for African exporters.
Failure to renew AGOA could have significant economic consequences. African countries risk losing thousands of jobs and facing higher trade barriers, while U.S. companies may see import costs rise due to reduced access to competitively priced raw materials.
Economists warn that this disruption could reverberate through both African and American markets, affecting trade flows and supply chains.
For Africa, AGOA has long represented more than just a trade preference; it is a strategic bridge to global markets. The coming decision will test not only bilateral relations but also the resilience of African economies striving to diversify exports and secure sustainable growth. The clock is ticking, and the stakes could not be higher.
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