The African Growth and Opportunity Act (Agoa) needs major revisions. This came into force in 2000. It offers almost 6,500 African products duty-free access to US markets.
Many of these exporters are small and medium enterprises that can grow by leveraging Agoa to their benefit. The act expires in 2025, having been extended four times before. Initially, it was meant to last until 2007 but was amended to clarify on preferential treatment of African goods and other standards required of goods. African countries may need more trade privileges with the US.
As of December 31, 2022, only 36 sub-Saharan Africa countries are eligible for the Agoa. Plans by the United States to renew Agoa should include proposals on how to include agricultural products which is the mainstay of the African economy.In terms of product coverage, the three African countries that have benefited the most from the Agoa are Ethiopia, Kenya and Lesotho because they export apparel. The product coverage excludes agricultural products. For a continent like Africa, excluding agriculture is excluding the main product. So African countries want Agoa to be renewed to cover more products. Agoa also excludes processed products as Africa is allowed to export iron and ore but not steel products. So it has to be expanded in terms of product coverage.












