Reported by Nqobile Dludla and Nellie Peyton in Johannesburg, President Donald Trump has taken steps to implement extensive tariffs on most imports to the United States, including those from African nations benefiting from the African Growth and Opportunity Act (AGOA). Experts indicate that the imposition of the new tariffs likely makes the renewal of AGOA highly improbable.
AGOA, established in 2000 during Bill Clinton's presidency, is a U.S. trade initiative designed to enhance trade relations with Sub-Saharan Africa and support economic development in African countries. It affords duty-free entry to the U.S. market for various products like vehicles, textiles, minerals, agricultural goods, and chemicals, exported by qualifying African nations. The program, renewed twice, is set to expire in September 2025.
Around 35 African countries currently meet the eligibility requirements for AGOA, with eligibility subject to economic policies and human rights protection measures. Numerous nations, such as South Africa, Nigeria, Ghana, and Kenya, among others, have effectively utilized AGOA to increase exports to the U.S., stimulate industrial growth, and generate employment opportunities, notably in the textile, automotive, and mineral sectors like crude oil.
AGOA benefits the U.S. by advancing its interests in Africa, facilitating access to crucial minerals and investment prospects. Countries that jeopardize U.S. national security or foreign policy objectives are ineligible for AGOA. U.S. lawmakers perceive the initiative as a significant soft power tool, especially in countering Chinese influence.
Entities like South Africa's automotive industry and the clothing sectors of Kenya and Lesotho would face significant repercussions in the event of abrupt tariff increases or AGOA non-renewal.
Critics observe that AGOA is not fully maximized, with only a fraction of eligible countries devising national AGOA utilization strategies, and the majority of exports stemming from a select few nations. While the apparel and automotive sectors have thrived under the program, other industries have struggled. U.S. imports from AGOA participants peaked in 2008 at $82 billion and declined to $29.1 billion in 2024, as per AGOA's records.
Some analysts acknowledge AGOA's positive effects but advocate for updates and enhancements to encompass emerging sectors like technology and digital services.