The African Growth and Opportunity Act (AGOA), which provides tariff-free access to the US market, is up for renewal in 2025. However, the US State Department emphasizes that more can be done to encourage African countries to use it effectively.
AGOA, due for renewal by Congress, offers African exporters duty-free access to the US market. At the 21st AGOA Forum in Washington DC, policymakers discussed ways to make the act more inclusive. Constance Hamilton, Assistant US Trade Representative for Africa, highlighted that while a few countries fully utilize AGOA, many least developed nations are not.
President Joe Biden urged Congress to “quickly re-authorize and modernize” AGOA, citing its role in creating jobs in Africa and opening new markets for American businesses. Joy Basu, Deputy Assistant Secretary for African Affairs, mentioned initiatives like hiring 100 AGOA advisors in 30 eligible countries to assist small and medium-sized businesses.
Hamilton also stressed the importance of African governments taking responsibility for increasing AGOA’s utilization. Since its enactment in 2000, AGOA has been pivotal in US policy towards Sub-Saharan Africa, allowing eligible countries to export over 1,800 products duty-free. In 2021, South Africa was the largest exporter under AGOA, generating about $2.7 billion in revenue.
AGOA eligibility requires countries to meet specific conditions, including removing barriers to US trade, supporting political pluralism, protecting human rights, and avoiding activities that undermine US interests. As of 2024, 32 countries are eligible. Ethiopia lost its status in 2022 due to human rights violations, and South Africa’s status is under review due to its foreign policy choices.
Participants at the AGOA Forum stressed the need for certainty about the program’s renewal to attract investors. Hamilton expressed confidence that Congress would renew AGOA before its expiry, likely in early 2025. Despite AGOA’s small share in US imports, several lawmakers see it as crucial in countering China’s influence in Africa, with Senator John Kennedy proposing a 20-year extension in 2023.
