Keypoints:
- US adviser Massad Boulos says AGOA renewal talks are ‘moving positively’ in Congress
- African nations expect a short-term extension before year-end to stabilise exports
- Trade worth $47 bn depends on AGOA’s renewal, vital for Africa’s industries
THE African Growth and Opportunity Act (AGOA), a landmark trade scheme granting duty-free access for sub-Saharan African exports to the United States, is edging closer to renewal. Massad Boulos, US senior adviser for Africa under President Donald Trump, says talks in Congress are ‘moving positively in the right direction’.
Speaking to Bloomberg, Boulos said the administration remains confident lawmakers will extend the 25-year-old programme before the year-end deadline. ‘We understand that it’s moving positively in the right direction,’ he said.
Background to the trade pact
Introduced in 2000, AGOA has underpinned US–Africa trade relations for a quarter century, allowing over 1,800 products from 32 African nations to enter the American market duty-free. The scheme expired on 30 September 2025 after Congress failed to pass a reauthorisation bill before recess.
Its lapse has caused uncertainty across African export sectors — from textiles in Lesotho to cocoa processors in Côte d’Ivoire — with businesses fearing higher tariffs and disrupted supply chains.
Trade at stake
Two-way trade between the US and AGOA-eligible countries reached $47bn in 2023, including $18.2bn in US exports and $29.3bn in imports.
Without renewal, African producers face tariffs averaging nearly 14 percent on goods previously covered by AGOA. Analysts warn such costs could erode Africa’s competitiveness just as regional industrialisation gains traction through the African Continental Free Trade Area (AfCFTA).
African optimism for short-term fix
South Africa’s Department of Trade, Industry and Competition (DTIC) believes a temporary extension is now the most likely outcome. Deputy Director-General Xolelwa Mlumbi-Peter told reporters that a ‘short extension will be a basis for sub-Saharan African countries and the US to identify improvements’.
Such an arrangement would keep all current members in the programme while giving both sides time to negotiate new provisions reflecting Africa’s evolving trade landscape.
Why it matters
For African economies like Kenya, Ghana and Ethiopia, AGOA has been pivotal in expanding non-traditional exports and attracting investment into manufacturing. Its renewal would provide predictability for industries employing millions, especially in textiles, automotive assembly, and agriculture.
Experts say the Trump administration’s willingness to renew AGOA signals a pragmatic shift towards partnership rather than protectionism. The US sees Africa’s market potential as critical to countering global economic competitors.
Outlook
Congress has until December 2025 to act. While political gridlock in Washington remains a risk, diplomatic momentum — reinforced by Boulos’s comments — suggests a bipartisan consensus could soon emerge.
African governments and business leaders are watching closely. The outcome will not only determine trade flows but also shape how the US repositions its economic strategy on the continent.
