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Since returning to office, U.S. President Donald Trump has cut key aid to Africa and imposed new tariffs on exports, raising fears of another setback with the expiration of the African Growth and Opportunity Act (AGOA).
In 2000, former President Bill Clinton established AGOA to promote economic development in sub-Saharan Africa. AGOA granted duty-free access to the U.S. market for thousands of African products, including motor vehicles and parts, textiles and clothing, minerals and metals, agricultural products and chemicals exported by eligible African countries. It has been renewed twice and is due to expire on September 30, 2025.
More than 30 African countries are eligible for AGOA. South Africa, Lesotho, Botswana, Mauritius, Malawi, and Chad stood among the hardest hit, with rural jobs and industries already suffering from tariffs.
With the US threatening to sever vital trade ties, South African businesses are on edge. Should Africa’s most industrialized economy prepare for a major economic and trade shake-up?
The 21st forum of the African Growth and Opportunity Act, a U.S program for sub-Saharan nations to have duty-free access to American markets, has ended with a call for the “modernization” and renewal of the legislation which was enacted in 2000. Participants at this year’s gathering, held under the theme, “Beyond 2025: Re-imagining AGOA for an Inclusive, Sustainable and Prosperous Tomorrow”, included senior government officials from across the U.S. Government and
President Donald Trump characterised the tariffs the U.S is imposing on countries across the globe – including dozens in Africa – as “reciprocal” as well as generous to the countries he has targeted – claiming that duties imposed on U.S. imports from each country amount to half those levied by those nations on American exports
Some analysts have, however, pointed out that instead of
Textiles including manufactured and assembled apparel have been a leading category of goods imported duty-free into the United States from sub-Saharan African countries under the African Growth and Opportunity Act (AGOA).