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South African President Cyril Ramaphosa spearheaded the efforts to expand the inclusion of small businesses in the African Growth and Opportunity Act (AGOA). AGOA which was launched in 2000 provides duty-free and quota-free access to the lucrative US market for exports from over 30 qualified African nations, contributing significantly to foreign direct investment through the export of nearly 2000 products from the Sub-Saharan region to the United States.
South African President Cyril Ramaphosa spearheaded the efforts to expand the inclusion of small businesses in the African Growth and Opportunity Act (AGOA). AGOA which was launched in 2000 provides duty-free and quota-free access to the lucrative US market for exports from over 30 qualified African nations, contributing significantly to foreign direct investment through the export of nearly 2000 products from the Sub-Saharan region to the United States. Addressing the AGOA Business Forum in Johannesburg, President Ramaphosa emphasized the need for US legislation to simplify procedures for small businesses. The continent sees potential to enhance AGOA with reforms that will increase the range of products and streamline access for small and medium-sized enterprises. This move is aimed at fostering economic growth, trade expansion, and foreign investments in the region, stated President Ramaphosa
The current US administration reiterated that it wants to work with Congress to improve this flagship trade program with Africa, not just renew it without changes. AGOA is due to expire in September 2025, and discussions are currently underway over what would be its third reauthorisation. African countries are pushing for an early 10-year extension without changes to reassure businesses and investors. Despite longstanding bipartisan support from U.S. lawmakers, who view AGOA as critical in countering the influence of China in Africa,
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About 35 African countries are eligible for AGOA, countries can lose and regain eligibility based on criteria including economic policies and protection of human rights. Many countries including Ghana, Kenya, Lesotho, Madagascar, and Ethiopia have successfully used AGOA to boost exports to the U.S. and create jobs, especially in textiles. One study estimated that 350,000 direct jobs were created due to AGOA from 2001 to 2011. U.S. lawmakers view AGOA as an important soft power tool, particularly as a counter to Chinese influence.
