Sunday, July 26, 2026

AGOA expiry impact on African export diversification

Unless the African Growth and Opportunity Act (AGOA) is renewed, African exporters of agricultural products and light manufactures could face shrinking market access to the United States, undermining prospects for diversification.
Since its launch in May 2000, AGOA has supported sub-Saharan African exports to the US through preferential access. However, the recent expiry of the scheme would threaten export diversification and industrialization across the continentIn a country like Lesotho, for instance, approximately one third of exports are tied to AGOA, predominantly in the apparel sector, which employs between 30,000 and 40,000 workers, primarily women. African and non-African exporters are already facing increased trade barriers in the US market.  Country- and sector-specific tariffs that have been introduced by the US since April 2025 have increased tariffs for the average AGOA country from below 0.5% to 10%. For key exports, such as agriculture and food products, metals, machinery and transportation, textiles and apparel, they have already triggered a double-digit increase in duties.

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