AGOA\’s Collapse Sparks Continent-Wide Anxiety
The End of a Vital Trade Agreement
The African Growth and Opportunity Act (AGOA), a pivotal trade agreement that granted African countries duty-free access to the US market for 25 years, has now expired. This landmark deal played a crucial role in shaping economic relations between the United States and Africa, aiming to foster industrialization, create jobs, and reduce poverty across the continent.
Impact on African Economies
Several African nations sent envoys to the US to negotiate an extension of AGOA, recognizing its significance as the cornerstone of US-Africa economic ties. The initiative was designed to help African countries develop their economies and integrate more effectively into the global market. Countries like Kenya, Lesotho, and Botswana have particularly benefited from AGOA, with the Kenyan apparel industry alone exporting $470 million worth of clothing to the US in 2024. This industry supports over 66,000 direct jobs, three-quarters of which are held by women.
However, the benefits of AGOA have not been evenly distributed. Garment sales from Kenya, for instance, have faced challenges this year due to a 10% tariff introduced by the Trump administration earlier this year. Despite these setbacks, studies indicate that AGOA has had positive effects, particularly in the textile sector, where exports to the US have increased significantly.
Economic Consequences
Without the renewal of AGOA, several African countries could face significant economic losses. Lesotho may lose almost 6% of its total exports, while Madagascar could see over 3% of its exports affected. Botswana and Chad might also experience around 2% loss in exports. A total of 35 African countries were part of the agreement, which provided them with easier access to the American market.
AGOA helped various industries thrive, including textiles, agriculture, and raw materials. In 2023, US imports under AGOA reached nearly $10 billion. Although this amount represented only a small fraction of overall US merchandise imports, it accounted for a substantial share of exports from eligible countries such as Lesotho and Madagascar.
Uneven Utilization and Challenges
Despite the benefits, not all African countries have successfully used AGOA to diversify their exports beyond primary commodities. The rate of utilization of AGOA preferences remains uneven across different beneficiaries and product categories. This disparity highlights the need for more strategic approaches to maximize the potential of the agreement.
Future Prospects
The expiration of AGOA poses a challenge for African countries, especially as competition for alternative export markets intensifies globally. Accelerating the implementation of the African Continental Free Trade Area could help mitigate this situation, but such a transition would be complex and time-consuming.
Since April 2025, rising US tariffs—especially country-specific tariffs implemented on 7 August 2025 and new sectoral trade measures—have increased duties on a wide range of products, regardless of AGOA preferences. This development further complicates the trade landscape for African exporters.
Historical Context
Launched in 2000 under US President Bill Clinton, AGOA was intended to bring Africa closer to the world’s strongest economy. However, the return of Donald Trump to the White House in 2025 brought renewed protectionist policies, leading to higher tariffs and effectively undermining the agreement.
The Need for Diversification
The demise of AGOA underscores the urgent need for Africa to diversify its trade structures. As the continent faces evolving global trade dynamics, the ability to adapt and explore new markets will be critical for sustained economic growth.
