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African manufacturers on Wednesday welcomed US lawmakers’ approval to revive duty-free access to the American market under the African Growth and Opportunity Act (AGOA).
For 25 years, AGOA has been central to US-Africa trade relations, allowing the United States to import billions of dollars’ worth of duty-free goods, including vehicles, apparel and other products, from eligible African countries.
The agreement, which covers 32 African nations, expired last September, placing thousands of jobs at risk and forcing exporters to shoulder steep tariff costs.
On Tuesday, the US House of Representatives passed legislation to renew AGOA for at least three years, though the bill still requires Senate approval.
Pankaj Bedi, Chief Executive of United Aryan factory in Kenya, described the House vote as a positive development but said continued pressure was needed to secure final approval. He said the sector was under severe strain as slowing demand, cash flow challenges and rising costs continued to weigh on exporters.
Bedi added that his company, which exports Wrangler and Levi’s jeans and employs about 10,000 people, had been absorbing higher import duties since AGOA’s expiration to retain customers.
He noted that tariffs on Kenyan exports had risen by 33 per cent, a situation he said was unsustainable.
Kenya’s Trade Minister, Lee Kinyanjui, also welcomed the House approval, describing it as a critical milestone for US-Africa trade ties. He said the uncertainty that had gripped the sector was likely to give way to renewed confidence and expansion.
South Africa likewise welcomed the development despite recent tensions with Washington. Trade Minister Parks Tau said the country valued its long-standing trade and investment relationship with the United States.
The push to revive AGOA comes amid a broader shift in US trade policy under President Donald Trump, who has criticised free trade agreements and imposed sweeping tariffs on several countries.
Before the deal lapsed, South Africa was the largest beneficiary of AGOA, with the automotive sector accounting for 64 per cent of AGOA trade, worth $1.6 billion in 2024, and is now among the industries most affected by the new tariffs.
