Several American officials, including the U.S. Deputy Trade Representative for African Affairs, have announced in recent months that the Biden administration aims to review the AGOA or replace it with a new trade agreement.
The African Union (AU) called on Thursday, November 2, for the U.S. Congress to renew the African Growth and Opportunity Act (AGOA), a trade preference program granted by the United States to Sub-Saharan African countries since 2000, for at least an additional ten years without making any changes.
"[An extension of] 10-20 years is very critical to the investment community. Anything lower than that would generate uncertainty,” said Albert Muchanga, AU Commissioner for Economic Development, Trade, Industry, and Mines during the 20th AGOA Forum held in Johannesburg. Muchanga also indicated that "if there are any enhancements to be made, those should be done after the extension”.
Launched in May 2000, the AGOA program enables eligible Sub-Saharan African countries to export over 1,700 products to the United States without paying duties. These products add to about 5,000 other items that can access the American market duty-free under the generalized system of preferences.
Each year, Washington updates the list of AGOA-eligible countries, considering their commitment to market economies, respect for the rule of law, and poverty alleviation policies. The initiative also takes into account the democratic progress or setbacks of the countries involved.
With the AGOA program set to expire in September 2025, several African nations are advocating for an early ten-year extension without changes to reassure businesses and new investors. Renewing the trade preference system is also supported by some members of the U.S. Congress, who fear that revising the program might delay or jeopardize its renewal.
In late September, U.S. Senator John Neely Kennedy introduced a bill in the upper house of Congress proposing the extension of AGOA until 2045. He mentioned that the program will greatly help Americans counter the increasing influence of China in Sub-Saharan Africa.
However, several U.S. officials, including Deputy U.S. Trade Representative for African Affairs Constance Hamilton, have advocated in recent months for the revision or replacement of AGOA with a new trade agreement.
• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...
In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...
• BOAD releases CFA10 billion ($17.8 million) to support Boungou and Wahgnion gold mines.• Burkina F...
Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...
• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société ...
• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo • License award comes on stream as part of the...
• The International Monetary Fund (IMF) has authorized a $262.3 million disbursement for Ethiopia, taking total payments under Extended Credit...
• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boosting regional trade and investment• Part of broader...
• IFAD initiates a program worth $358.26 million to bolster dairy sector in Kenya, Rwanda, Tanzania, and Uganda • The program, called DaIMA, aims...
The Gerewol tradition is a fascinating ritual celebrated by the Bororo Fulani, a nomadic community primarily located in Chad and Niger. This annual...
In northern Ethiopia, in the Tigray region, lies Axum (also spelled Aksum), an ancient city that once stood at the heart of one of Africa’s most powerful...