Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, remains highly optimistic about the renewal of the Africa Growth and Opportunity Act (AGOA) despite the uncertainty surrounding the trade accord.
AGOA is a US-Africa trade accord that allows qualified African countries to export some selected goods to the United States duty-free. The act was enacted in 2000 by the Bill Clinton administration. African countries must meet certain conditions, such as political pluralism, respect for human rights, and a fight against corruption.
It is estimated that about 30 African countries have benefited from AGOA, exporting a wide range of products from clothing to automobiles to the US market under duty-free conditions.
The United States International Trade Commission (USITC) estimated that in 2023 alone, about $9.26 billion worth of goods were exported under AGOA.
Ghana is a significant beneficiary of AGOA. The Bank of Ghana estimates that between 2019 and 2024, Ghana–U.S. trade averaged $2.5 billion annually, representing about 15% of Ghana’s total exports.
In 2024, bilateral trade reached $2.48 billion, with Ghana exporting $1.60 billion and importing $874 million, resulting in a trade surplus of over $730 million. The Governor of the Bank of Ghana describes Ghana as the “top beneficiary” of AGOA.
The Fate of AGOA
The drastic change in the US trade and foreign policies under the Donald Trump administration is threatening the continuation of AGOA. Already, the US administration has announced sweeping reciprocal tariffs on all US trade partners, adding to the uncertainty over the fate of AGOA.
USAID has withdrawn services as the Trump Administration seeks to reset the philanthropy organization in the interest of America.
AGOA is set for a review in September this year. As the renewal nears, although the White House has not officially cancelled AGOA, the fate of the trade policy hangs in the balance. Director of the Africa programme at the Chatham House think tank, Alex Vines, says currently there is “no clarity” on the trade accord.
Some analysts are pessimistic about AGOA given the direction of the Trump administration’s trade policies.
“Given Trump’s scepticism of multilateral frameworks, AGOA’s continuation could be legitimately under threat,” said Ronak Gopaldas, an analyst at the Institute for Strategic Studies, Africa. An analysis by the BBC also states that the AGOA’s status is uncertain.
But the BoG Governor is Positive
Despite the uncertainties surrounding AGOA, Dr. Johnson Asiama is hopeful of a possible renewal in September. Dr. Asiama was speaking at the African Leaders & Partners Forum at the Embassy of Ghana, Washington, D.C., USA. He was speaking on the theme “Africa & the U.S.: Shaping a Trade-Driven Future.”
He further believes the renewal should be realigned to Africa’s industrialization, access, and value addition.
Without expressing any doubt about the renewal, Dr. Asiama said,” As the AGOA pact nears expiration in 2025, in its renewal, we must reshape AGOA to align with Africa’s industrial goals, ensure rules-based access, and embed incentives for value-added exports.”
The Bottomline
As the countdown to AGOA’s review nears, the stakes could not be higher for Ghana and other African economies that have long relied on the trade accord to boost exports and attract investment. While the uncertainty from shifting U.S. trade policies under the Trump administration has cast a shadow over the future of AGOA, voices like that of Dr. Johnson Asiama provide a measure of hope and direction.
Ultimately, whether AGOA is renewed or not, the moment offers Africa an opportunity to advocate for a stronger, rules-based framework that not only grants market access but also supports the continent’s broader development ambitions. With Ghana positioned as a leading beneficiary, the country must continue to engage actively with U.S. stakeholders while also exploring complementary trade strategies that safeguard its economic future.
