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The legislation that allows Sub-Saharan African countries, including SA, preferential access to US markets could be extended by 20 years beyond 2025 if the US Congress approves a bill introduced by Louisiana senator John Kennedy. Kennedy wants the legislation extended to 2045 because it would help deter “China’s growing influence throughout the region. This extension would allow the US to keep working closely with African nations to grow our economies, reduce poverty and ensure that US values prevail in the region,” according to a...

It is almost certain that South Africa’s Agoa status will be renewed despite it and the US often being on opposite sides over geopolitical crises in the past year. The eligibility of countries for the US’s African Growth and Opportunity Act (Agoa) has been under review during the past few months, and it is becoming clearer that South Africa is one of the countries that will continue being a part of the trade programme. A strong indication of this is that the annual AGOA Forum will take place in Johannesburg between 1-4...

The Africa Growth and Opportunity Act (AGOA) is unilateral and non-reciprocal US legislation that aims to promote trans-border trade between the US and African nations. It enables the US to give preferential trade benefits to African countries that satisfy eligibility requirements: these include social, political and economic governance targets. In 2019, however, the emergence of the African Continental Free Trade Area (AfCFTA) created uncertainties over the renewal of AGOA, which expires in 2025. Some observers suggested that instead...

Trade negotiations between Kenya and the United States entered the third round last week, with four items listed for negotiations. The Kenya-US Strategic Trade and Investment Partnership (STIP) negotiations, held from October 4-7 in Washington DC, covered agriculture and sanitary and phytosanitary measures, services, domestic regulations, anti-corruption; and women, youth among others. The Kenyan trade team also held discussions with staff from the US Congress and Senate, a significant step in seeking approval from both Houses should...

It was a drive to explore international trade that saw entrepreneurial sisters, Michelle and Mo Mokone, grabbing an opportunity to venture into the United States of America market. The pair are the co-owners of Mo’s Crib, a company that produces a range of handmade home décor products.  Their product range includes handwoven baskets, planters, trays, wall art and home outdoor items. It was in 2021 that the pair decided to take advantage of the African Growth and Opportunity Act (AGOA), a United States Trade Act, which was enacted...

Sen. John Kennedy (R-La.) today introduced the AGOA Extension Act of 2023, a bill that would extend the African Growth and Opportunity Act (AGOA) through September 2045. The AGOA has been key in helping the United States work with sub-Saharan Africa to facilitate trade, reduce poverty, promote democracy and counter China’s growing influence in the region. “The African Growth and Opportunity Act has been the cornerstone of economic ties between the United States and Africa. Over the next two decades, the AGOA will play a pivotal role in...

By serendipity I found myself attending a hearing in the US Capitol last week on the US-SA bilateral relationship. Such hearings are easy for members of the public to access and, given an afternoon free in Washington between other meetings, I attended. The most striking feature of the hearings was the common refrain that the ANC was failing. It was taken as a given that the ANC is delivering poor governance. US support was framed as needing to support the people and institutions of democracy, largely against the ineffective governance...

SA is to argue strongly that its participation in the Africa Growth and Opportunities Act (Agoa) benefits neighbouring countries through shared value chains, said trade, industry and competition minister Ebrahim Patel on Tuesday. The argument will be made in November when the Agoa forum meets in Johannesburg that neighbouring countries will suffer significant losses if SA is excluded from the scheme, which provides preferential access to certain products from Africa to the US market. The forum will bring together the governments of the US...

The World Economic Forum in Davos this year acknowledged a world grappling with multiple crises characterised by Covid-19, conflicts, soaring living costs, and climate change. Amid these challenges, Africa's economic potential is garnering global recognition. Its emerging role in markets and geopolitics is set to expand, driven by its natural resources and promising economic prospects. This reality underscores the urgency for Africa to confront its trade-related hurdles, including convoluted regulations, restricted market access, and...

The  South African Department of Trade, Industry and Competition (the dtic) will be co-hosting the United States of America’s African Growth and Opportunity Act (AGOA) Forum for 2023. The summit takes place on 2– 4 November 2023 in Johannesburg. Members of the media who wish to cover the event are requested to fill in the  accreditation form and send it back to Charles Mnisi on This email address is being protected from spambots. You need JavaScript enabled to view it.(link sends e-mail) to comply with state security requirements. The deadline for submission of the forms is 8 October...

President Joe Biden’s agenda is chock-full with many competing and challenging issues. Nevertheless, at the U.S.-Africa Leaders Summit last December, the president said that he would visit Africa in 2023. No details have been made public, but hopefully planning is well underway for what would be the first visit to the continent by a U.S. president since President Obama went to Kenya and Ethiopia in 2015. While the administration will inevitably have its own objectives for the visit, here we share ours and a recommended...

South Africa is set to host the African Growth and Opportunity Act (AGOA) Summit later this year, despite recent diplomatic tensions between the country and the United States (US). In June this year, US legislators called for the relocation of the summit due to controversy surrounding alleged arms shipments to Russia by South Africa. Cleared of any wrongdoing by an internal judicial panel, the US has reaffirmed its commitment to shared growth with South Africa. “The AGOA Forum is an opportunity for the United States to build upon the...

United States Trade Representative Katherine Tai and South African Minister of Trade, Industry and Competition Ebrahim Patel today announced that the Government of South Africa will host the 20th US-sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum) in Johannesburg, from November 2-4, 2023. The Forum will bring together the governments of the United States and AGOA-eligible countries, as well as representatives from key regional economic organizations, the private sector, civil society, and labor. Over the course of the...

President Cyril Ramaphosa has told American business representatives that Africa is ready for new investment and strong partnerships. The President was delivering remarks at the US - South Africa Trade and Investment Business Roundtable Dialogue in New York on Monday.  “Africa is ready for new investment and strong partnerships. South Africa is well positioned as the continent’s industrial centre, with deep capital markets, the rule of law, protection of property rights and a dynamic and youthful population.  “The...

The U.S. Chamber of Commerce is organizing a record number of meetings and events on the sidelines of the 78th session of the UN General Assembly (UNGA) to help foster public-private collaboration and underscore the indispensable role of the private sector in realizing the UN’s global targets. As part of this effort, the U.S. Chamber’s U.S.-Africa Business Center (USAfBC) today hosted the U.S.-South Africa Trade and Investment Executive Dialogue with the President of the Republic of South Africa Cyril Ramaphosa. President Ramaphosa...

Nigerian-born United States Deputy Secretary of the Treasury, Wally Adeyemo, will be in Lagos, Nigeria between September 17 – 19, 2023, for a number of diplomatic engagements including a meeting with entrepreneurs and start-ups to discuss how they can sell their products by exploring “duty-free access” to the US market. Duty-free access is the permission given by a host country for another country to export goods into their country without having to pay tax or import duty. A statement published by the US Embassy and Consulate in...

In an effort to extend South Africa’s preferential trade agreement with the US, trade, industry & competition minister Ebrahim Patel is holding high-level meetings with US legislators ahead of the UN General Assembly this week.  President Cyril Ramaphosa is understood to have attended some of the meetings, including with senator Gregory Meeks, the foreign affairs committee chair who called on the US to strip SA of the right to host the 2023 Agoa forum, accusing Pretoria of supporting Russia in its war in Ukraine. SA has...

Kenya's President William Ruto will address leading US technology companies and investors on Friday at the US-Kenya Business Roadshow in San Francisco organised by the American government’s Prosper Africa initiative. The roadshow - also co-organised by the US Embassy in Nairobi - highlights the business and investment potential in Kenya’s booming tech sector, a statement from the US Embassy in Kenya said. The event is part of a three-city US-Kenya Roadshow tour showcasing opportunities for companies exploring doing business and...

The coming AGOA forum, intended to map the way forward for US-SA trade relations, presents an opportunity for SA and the US to move on from the diplomatic storm stemming from perceptions that Pretoria sides with Russia in its war on Ukraine, says a top Washington official.  SA-US tension escalated in May after US ambassador to Pretoria Reuben Brigety accused SA of providing arms to Russia in December 2022. The presidency released a report in September on a finding that there was no evidence that SA supplied arms to Russia or that...

On Wednesday, the Ways and Means Trade Subcommittee examined the Generalized System of Preferences (GSP) trade program and what possible reforms could help align the program better with America’s strategic trade goals. Witnesses emphasized the importance of the United States using trade policy to benefit American workers, farmers, and small businesses while combatting China’s unfair trade practices and coercive economic model. GSP Can Be Reformed to Benefit American Workers and Producers and Help Move Supply Chains from...

There was more good news for the successful implementation of the African Continental Free Trade Area (AfCFTA) agreement in December 2022, when a Memorandum of Understanding (MoU) was signed between the United States (US) Trade Representative and the AfCFTA Secretariat at the US-Africa Leaders’ Summit (Summit) in Washington DC. The MoU covers expanded engagement between the two regions and intends to “promote equitable, sustainable, and inclusive trade; boost competitiveness; and attract investment to the continent.” It was also...

Loss of access to US trade benefits through the African Growth and Opportunity Act (Agoa) would hurt not only the SA motor industry but also many more across Africa that depend on it for their future growth, says a new report.  Attempts to create a pan-African motor industry and quintuple the size of the continent’s new-vehicle market could be undermined if the SA industry, the strategy’s main driver, is weakened, the report by motor industry association Naamsa says.  The SA government’s flirtations with Russia, most...

About 26 535 tonnes of sugar is shipped yearly to the Unites States of America through the African Growth and Opportunity Act (AGOA). Eswatini Sugar Association (ESA) Logistics Manager, Sibusiso Hlandze said the local sugar was exported  to a terminal in Maputo, Mozambique. He said the terminal,called the Sociedade Terminal De Acucar De Maputo (STAM), played a significant role in the country's sugar industry. It is owned by four sugar companies in four countries namely Eswatini, South Africa, Zimbabwe and Mozambique. According to...

On the eve of the 15th BRICS summit, both SA and US diplomatic sources say they believe that relations between the two countries have improved, with the US adding that there has been more engagement in the past six months than in the past decade. The BRICS summit, which starts in Sandton on Wednesday afternoon, will highlight SA's relationship with two of the US's global opponents: Russia, with which it is indirectly at war, and China, with which it is engaged in a growing contest for geopolitical influence.  In an address to the...

On Friday, the Standing Committee on Finance, Economic Opportunities and Tourism met with key stakeholders in the citrus industry at Market Demand Fruits, Stellenbosch. The meeting focussed on the detrimental impact on citrus exports to the United States should South Africa not be included in the reauthorisation of the African Growth and Opportunity Act (AGOA). These stakeholders included representatives from Summer Citrus South Africa, Seatrade, Good Hope Fruit, Cape Fruit Coolers, Cedar Citrus, Maersk and MSC; and was followed by an...

The US and Kenya announced a trade and investment partnership in July 2022. Talks have been progressing on the way forward in nine areas, including agriculture, anti-corruption, digital trade, environment and climate change action, and workers’ rights and protections. The Strategic Trade and Investment Partnership (STIP) will be the first significant trade partnership between the US and a country in sub-Saharan Africa. Countries in the region currently rely on the African Growth and Opportunity Act (AGOA), which offers duty- and...

Mr. Kobina Tahir Hammond, Minister of Trade and Industry, says Ghana desires to increase its exports to the United States (US) market, arguably the most lucrative consumer market globally. He indicated that the Government had stepped up support for the private sector, both domestic and foreign, to enhance production and export capacity, particularly in the manufacturing sector, with notable opportunities for export into the U.S. market. The Minister made the remarks at the 2023 Ghana-US Business Expo which was held on the theme,...

The United States govern­ment has expressed its willingness to create jobs through increased trade and investment in sectors such as agriculture, technology and infrastructure, as well as boost innovation and elevate the living standards of mil­lions of Africans. The U.S. Consul General, Will Stevens, disclosed this at the Africa Social Impact Summit 2023, themed: “Global Vision, Local Action: Reposi­tioning the African Develop­ment Ecosystem for Sustain­able Outcomes,” which was held in Victoria Island, Lagos, on...

The African Growth and Opportunity Act (AGOA) has benefitted Kenya’s textile and apparel sector, leading to monthly exports to the tune of Sh4.5 billion, or Sh150 million per day, last year, according to a study by London-based Institute of Economic Affairs (IEA). The programme has had a positive impact on the country’s export-processing zones (EPZs), especially in the textile and garment sector. Kenya is the second-largest exporter of textile and apparel products to the Unitd States among AGOA beneficiaries. The sector has...

US fashion companies are calling for the early renewal of the African Growth and Opportunity Act (AGOA), a trade program that allows thousands of African products to enter the United States duty-free. They argue that a longer-term arrangement would not only benefit African economies but also boost investment in the region. The AGOA was first enacted in 2000 and is currently set to expire in 2025. However, US officials have indicated that the qualifying criteria for beneficiaries could be revised or the program replaced altogether. This...

In a span of two weeks, US President Joe Biden has dispatched two senior members of his administration to Nairobi with a firm message to President William Ruto on good governance, human rights and a subtle push on the geopolitics surrounding the Russian invasion of Ukraine. And Kenya, a longtime Western ally, is under pressure to maintain trading ties with the US. The timing of the visit was significant as Russia hosted over 17 African leaders out of the expected 43 on Thursday and Friday, with promises of free Russian grain “to...

Beginning in August, China will levy export controls on two critical minerals: gallium and geranium. These metals are essential to semiconductor technology and restricting access to them marks Beijing’s latest volley in its strategic power competition with Washington and will significantly disrupt U.S. and Taiwanese chip manufacturers. The global mineral supply chain is already narrow and China has an overwhelming lead with respect to rare earth metal extraction and processing. This market dominance enables Beijing to manipulate...

The South African government sent a senior ministerial delegation to the US to make its case for keeping South Africa as a beneficiary of its trade preferences under the African Growth and Opportunity Act (AGOA). Most commentators focus on the benefits of Agoa to South Africa, but there are good reasons that it is very much in America’s interests to keep South Africa as a trading partner and within its sphere of influence through Agoa membership. Agoa is not a bilateral trade agreement – it is a piece of US legislation in terms of...

South Africa has asked the US to consider an early extension to the African Growth and Opportunity Act (Agoa), saying this would provide certainty for investors and encourage them to commit additional investment on the continent. Trade, industry & competition minister Ebrahim Patel said the expeditious renewal trade agreement, which gives SA and other sub-Saharan African countries preferential access to US markets, would be beneficial not only for SA, but also Africa’s industrialisation. “We identified improvements that can be made...

US Senator Jim Risch has tabled legislation in Congress aimed at shifting this year’s AGOA forum from South Africa to another country because of Pretoria’s perceived closeness to Russia. It’s yet another sign that the US may pare back SA’s AGOA and Pepfar benefits. Powerful US Senator Jim Risch – South Africa’s chief foe in Congress – has tabled legislation which says the US administration should shift this year’s forum of the Africa Growth and Opportunity Act (Agoa) from South Africa to another country. Risch, the senior...

The Trade and Investment Framework Agreement (Tifa) between the US and the East African Community has begun taking shape, with a section of the bloc’s members keen on it and others still biding their time. This week, US officials were in Nairobi to conduct part of the negotiations on the US-Kenya Strategic Trade and Investment Partnership and to meet Trade ministers from the region. On July 18, Trade ministers from Tanzania, Uganda, Rwanda, DR Congo, Burundi and South Sudan met with US Trade Representative Katherine Tai. Kenya was...

The US says it may consider proposing to its lawmakers an extension of duty- and quota-free access to its market for sub-Saharan countries when the current deal expires in May 2025. [AGOA.info note: AGOA removes standard import tariffs, but not quotas).  United States Trade Representative Katherine Tai, said another renewal of the preferential trade programme depends on the US Congress, but her office could facilitate it. “We are working on facilitating pathways to having the conversations and consultations …to enable the...

A recent report has shown that the United States is unsure when discussions for a free trade agreement with Kenya would be completed, notwithstanding the fact that Nairobi previously stated that the talks would be completed by December. The United States Trade Representative Katherine Tai, who wrapped up a three-day visit in Nairobi on Wednesday, stated that the US negotiators do not have a timetable for ending discussions or signing the planned US-Kenya Strategic Trade and Investment Partnership (STIP). “In terms of signature and when...

Kenyan President William Ruto has today held talks with US Trade Representative, Ambassador Katherine Tai. The discussions were based on US trade policy. Ruto said that the country is ready to strengthen the already existing relations between the two nations. "We will stretch our ties beyond the African Growth and Opportunity Act (AGOA) in the wake of advanced technology and climate change, for the full exploitation of our trade potential," he said. The President said trade between the two countries is key and has been...

The Economic Community of West African States (ECOWAS), in collaboration with the United States Agency for International Development (USAID), commenced a two-day sensitization workshop for economic operators on the African Growth and Opportunity Act (AGOA) and Food Safety Act in Monrovia. However, the African Growth and Opportunity Act (AGOA) is a U.S. unilateral trade preference program that allows eligible countries in sub-Saharan Africa to export to the United States up to 6,900 products duty-free, increasing trade and...

The US trade representative is in Nairobi to co-lead a meeting that seeks Kenya's partnership in a fresh trade deal. The Trade and Investment Framework Agreement (TIFA Council) is pursuing various agreements even as regional peers express concern over Kenya's solo approach.  Yesterday, Trade Representative, Katherine Tai met patron circle members of the American Chamber of Commerce-Kenya (AmCham Kenya) ahead of today's meeting.  "The meeting marks the fifteen-year anniversary of the US–EAC TIFA and comes as the Biden-Harris...

With over 1300 delegates at the US-African  Business Summit held mid-July in Gaborone, Botswana, the main focus was on mapping out strategies to strengthen trade and economic relations between the United States and Africa. Majority of the speakers emphasized reviewing and widening collaboration between governments, while others underlined the importance of the private sector as the key driver in achieving  robust economic growth in African countries. African leaders together with corporate business executives and majority of the...

The country’s performance in AGOA was highlighted by Tammy Dlamini, who is the Senior Country Representative (Eswatini and Angola) for the USAID Africa Trade and Investment Southern Africa Buy-in Activity.  In his presentation it was noted that the country’s exports to the United States (US) in 2022 was over E1.4 billion, while in 2021 it was E669 164 496 and E387 702 611.40 in 2021. Dlamini said the US was a big market worth taking advantage of. He said Eswatini was the United States’ 163rd largest supplier of goods...

With over 1300 delegates at the US-African Business Summit held mid-July in Gaborone, Botswana, the main focus was on mapping out strategies to strengthen trade and economic relations between the United States and Africa. The majority of the speakers emphasized reviewing and widening collaboration between governments, while others underlined the importance of the private sector as the key driver in achieving  robust economic growth in African countries. African leaders together with corporate business executives and majority of...

Minister of Finance Enoch Godongwana, his counterpart at Trade and Industry Ebrahim Patel and Minister in the Presidency Khumbudzo Ntshavheni have held discussions with senior officials in the US over the extension of the preferential trade agreement and investments. The ministers were in Washington this week where they met with US Trade Representative Katherine Tai to strengthen bilateral ties with Washington and push for the renewal of the African Growth and Opportunity Act (AGOA). On Friday the ministers met with business executives in...

Leaders at the U.S.-Africa Business Summit in Botswana have urged renewal of the long-standing Africa Growth Opportunities Act (AGOA). The trade deal gives some African countries preferential or even tax-free access for their exports to the U.S. market. The agreement is due to expire in 2025, and African delegates at the summit want the deal renewed. Botswana President Mokgweetsi Masisi, addressing delegates gathered in Gaborone for the summit, led the pleas to Washington to renew the arrangement. Since it was put into place in 2000, AGOA...

Has the African Growth and Opportunity Act (AGOA) achieved its goal of improving trade and investment between the U.S. and Africa? Created in 2000 and renewed in 2015, AGOA is a U.S. government trade program that gives countries in sub-Saharan Africa preferential access to U.S. markets, allowing them to export products to the United States tariff-free. AGOA has certainly helped boost African exports to the United States, but the trade data raise questions about why some countries are better able to capitalize on the...

South Africa’s place in the African Growth and Opportunity Act (AGOA) could be under threat due to SA's relationship with Russia. Motheo Khaoripe is joined by John Hudson, head of agriculture at Nedbank, to discuss the impact of South Africa's potential removal from AGOA. Listen to the interview here.  We export more than 50% of what we produce, so a market like the United States is really important, says John Hudson, Head of Agriculture - Nedbank. It's around 5% of our total exports, and last year our total exports were...

The American Apparel & Footwear Association (AAFA) recently urged the office of the US trade representative (USTR) to renew the African Growth Opportunity Act (AGOA) this year for at least another 10 years—or maybe longer—so that US companies will have the necessary certainty and timeframe they need to grow a vertical, responsible and competitive industry in Africa up to and beyond 2025. AAFA vice president for trade and customs policy Beth Hughes, in a letter to USTR’s trade policy staff committee chair William Shpiece, said the...

The DA has urged US legislators to keep SA as a member of a trade pact that gives African countries preferential access to US markets, saying its removal will have unintended consequences for both countries. This comes ahead of the US government’s virtual hearings, starting on July 24, when 35 sub-Saharan countries, including SA, are expected to make oral representations in a bid to retain trade benefits under the African Growth and Opportunity Act (Agoa). Written submissions were due on July 7. The DA submission to US trade...