Skip to content

SME Guide

US Aims to Boost AGOA Impact Across Africa, Modernising Trade Program

The United States is intensifying efforts to expand the reach of the African Growth and Opportunity Act (AGOA) in underserved African nations while working to modernise this pivotal trade and investment program.

During a recent digital press briefing on the AGOA 2024 Forum, key US officials outlined strategies to enhance the program’s effectiveness and incorporate feedback from participating countries. Constance Hamilton, Assistant US Trade Representative for Africa, and Joy Basu, Deputy Assistant Secretary for African Affairs at the U.S. Department of State, led the discussion.

Hamilton revealed that the US Congress is actively working on modernising AGOA, with a focus on improving utilisation in African countries that have yet to fully benefit from the program. This initiative aligns with resolutions from the 2024 U.S.-Sub-Saharan Africa Trade and Economic Cooperation AGOA Forum, held from July 24 to 26, which aimed to strengthen economic partnerships and address challenges within the program.

The forum, themed “Beyond 2025: Reimagining AGOA for an Inclusive, Sustainable, and Prosperous Tomorrow,” brought together senior government officials, representatives from regional economic organisations, labour groups, civil society, and the private sector.

Key points discussed at the forum included:

  1. Increasing program utilisation
  2. Promoting worker-centric trade policies
  3. Strengthening partnerships for mutual economic benefits
  4. Addressing barriers faced by women, youth, and MSMEs in accessing trade opportunities
  5. Leveraging the multilateral trading system to benefit underserved communities

Hamilton also addressed specific issues with certain African countries, including updates on South Africa’s citrus product requirements and factors leading to the loss of AGOA status for some nations.

Joy Basu emphasised the Biden administration’s commitment to reauthorising AGOA and expanding free trade between the US and African countries. She noted ongoing reviews of eligibility for countries that have lost AGOA status.

Importantly, Hamilton clarified that AGOA is not in opposition to the African Continental Free Trade Agreement (AfCFTA) but rather supports it, with plans to align AGOA policies with AfCFTA objectives.

A significant development at the forum was Nigeria’s signing of a Memorandum of Understanding on Commercial and Investment Partnerships with the United States. Dr. Doris Uzoka-Anite, Nigeria’s Minister of Industry, Trade, and Investment, stated that this bilateral agreement focuses on key areas including infrastructure, agriculture, the digital economy, investment promotion, and regulatory reforms.

As AGOA evolves, its role in fostering US-Africa trade relations and supporting economic growth across the continent remains crucial. The program’s modernisation efforts and expanded reach signal a renewed commitment to mutually beneficial economic partnerships between the United States and African nations.

Leave a Reply

Your email address will not be published. Required fields are marked *