International trade
Manufacturers and governments across Africa warn that President Donald Trump’s one-year extension of the African Growth and Opportunity Act offers just temporary respite.
AGOA provides duty-free access to the United States market for almost 2,000 products from eligible sub-Saharan countries.
A cornerstone of US-Africa trade relations for 25 years, it has permitted the US to buy billions of dollars of duty-free cars, clothes, and other items each year.
But with the Trump administration broadly hostile to free-trade deals, it was allowed to expire on 30 September.
The new extension came with fresh demands and fell far short of the multi-year renewal that many African businesses wanted.
“AGOA for the 21st century must demand more from our trading partners and yield more market access for US businesses, farmers, and ranchers,” said US Trade Representative Jamieson Greer.
In Kenya, the owner of a factory that exports Wrangler and Levi’s jeans under the deal said the extension was “good news”.
“But it’s only as good as one season, so the negotiations are not a done job,” said Pankaj Bedi, CEO of United Aryan in Nairobi.
His factory had been forced to pay the extra duties when AGOA lapsed last year, in order to keep their US buyers on-side, pushing the company and its 10,000 workers to the brink of collapse.
“The extension gives us a breather, which is critical. But it won’t help with the long-term orders and investments to sustain us,” said Bedi.
Fears that it was not going to be renewed raised concerns about the potential loss of hundreds of thousands of jobs across the continent.
“We were worried, even workers, … because they had children in school. Here is the job we are having, it’s now almost going if there’s no extension,” said Norah Malava, an employee at the Kenyan jeans factory.
In 2024, $8.23 billion worth of goods were exported under the accord, half of which came from South Africa, mainly cars, precious metals and farm produce.
One fifth came from Nigeria, mainly oil and other energy products, according to the US International Trade Commission.
Economists suggest the short-term renewal until the end of 2026 will not result in any new investment by African business or longer-term planning by US firms sourcing from Africa.
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