The African Growth and Opportunity Act (AGOA), established by the United States in 2000, grants sub-Saharan African countries preferential access to the U.S. market. Over 6,700 products benefit from duty-free entry, including those covered by the Generalized System of Preferences (GSP). For more than two decades, this initiative has boosted exports to the world’s largest economy while stimulating investment and job creation across the continent.
AGOA program : Tool for development and growth
AGOA is not limited to promoting exports; it also aims to drive economic reforms within Africa. Each year, the United States reevaluates country eligibility based on strict criteria, such as:
- commitment to a market-based economy,
- adherence to the rule of law,
- poverty reduction,
- democratic progress.
These criteria ensure that AGOA beneficiaries pursue development-friendly policies that reinforce their economic resilience.
AGOA enables several African economies to diversify their exports. For instance, Kenya’s textile and apparel sector has experienced significant growth thanks to preferential access to the U.S. market, creating jobs and improving local incomes. Similarly, South Africa has broadened its export range from manufactured goods to agricultural products, reducing its reliance on raw materials.
Analyzing trade flows between the United States and Africa
Total bilateral trade between the United States and sub-Saharan Africa reached 47.5 billion USD in 2023, marking a 6.2 % increase from 44.7 billion USD in 2021. This growth comprises U.S. exports valued at 18.2 billion USD and imports from sub-Saharan Africa amounting to 29.3 billion USD. Rising U.S. exports are primarily driven by increased sales of aircraft and petroleum products.
Sector breakdown of African exports
In 2023, U.S. imports from AGOA-eligible countries reached 9.7 billion USD, a 5 % decrease from the previous year’s 10.2 billion USD. This decline is partially due to reduced crude oil imports, which nonetheless remain the dominant product in U.S.-sub-Saharan Africa trade, valued at 4.2 billion USD. Other sectors also benefit from AGOA, notably textiles and apparel, generating 1.1 billion USD, followed by agricultural products exceeding 900 million USD.
Structure of bilateral trade : Trends and dynamics
Nigeria is the top beneficiary of the AGOA program in 2023, with exports to the United States totaling 3.8 billion USD, primarily supported by crude oil. South Africa, the second-largest trade partner under AGOA, achieves exports valued at 3.6 billion USD, spanning diverse sectors. Other exporters in the region include Kenya, Ghana, Madagascar, and Angola, with respective volumes ranging from 510 million USD to 260 million USD.
Toward a program extension : Challenges and prospects
The expiration of the AGOA program, scheduled for September 2025, raises concerns among African beneficiary countries. Many advocate for a ten-year extension without amendments, aiming to provide stability to local businesses and investors. Such a measure also avoids the uncertainty that could arise from a late renewal. Several U.S. Congress members share this view, fearing that potential modifications could hinder the program’s renewal.
In April 2023, a bipartisan group of U.S. senators introduced a bill to extend AGOA until 2041. However, Constance Hamilton, Deputy Assistant U.S. Trade Representative for African Affairs, and some U.S. officials believe a program revision could better address current needs. A transformation of AGOA or its replacement by a new trade agreement should align both parties’ interests and consider evolving global economic relations.
