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Africa begs US as continent pins hopes on AGOA finalisation

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Staff Reporter
Staff Reporter
Authored by our expert team of writers and editors, with thorough research.

The African Union (AU)’s appeal to the United States (US) Senate to pass the African Growth and Opportunity Act (AGOA) Extension Act has revealed the continent’s continued reliance on preferential access to the US market as a pillar of trade and employment especially for export-dependent economies such as Lesotho.

This week, the US House of Representatives approved a three-year extension of AGOA, renewing hope across Africa that a programme which has anchored US–Africa trade relations for more than two decades will not be allowed to lapse.

The bill now awaits consideration by the US Senate before further consideration by the President of the US.

Welcoming the House’s decision, African Union Commission Chairperson H.E. Mahmoud Ali Youssouf said the vote reflected enduring bipartisan support in Washington for economic cooperation with Africa.

“For over two decades, AGOA has served as a cornerstone of U.S.–Africa economic relations, supporting industrialisation, job creation, regional value chains, and inclusive growth across the continent,” said Mr Youssouf.

His remarks underscore how deeply AGOA has become woven into Africa’s trade architecture. Since its enactment in 2000, the programme has granted eligible sub-Saharan African countries duty-free access to the US market for thousands of products, encouraging export-led growth in sectors ranging from apparel and footwear to agriculture and manufactured goods.

With the bill now before the Senate, the AU has openly appealed for its swift approval.

“As the bill proceeds to the United States Senate, the Chairperson appealed to the Senate to give favourable and timely consideration to the extension, in a spirit that upholds partnership, and shared strategic interests,” the AU said.

For the African Union, AGOA is more than a trade scheme, it is a diplomatic and economic bridge.

“The African Union Commission reaffirms its commitment to working closely with the Government of the United States, Congress, and all stakeholders to ensure that AGOA continues to serve as a bridge for economic cooperation and a symbol of the enduring friendship between Africa and the American people,” Mr Youssouf said.

AU’s surprising fixation on AGOA throws into doubt the continent’s true intentions about intra-African trade under the African Continental Free Trade Area (AfCFTA) and other envisaged goals.  

Displaying similar sentiments, the government of Lesotho through the Ministry of Trade, Industry and Business Development, confirmed that its Trade minister is currently in the US where he is actively lobbying for AGOA’s renewal.

The World Bank data indicates that at its height, about one third of Lesotho’s total exports were tied to AGOA, with the apparel and textile sector accounting for the bulk of these exports. The industry employed about 45,000 workers, the majority of them women, making it one of the country’s largest private-sector employers and a critical source of household income.

“The Basotho nation is informed that the Honourable Minister of Trade, Industry and Business Development is currently in the United States of America to continue engagements with key stakeholders, including members of the Senate, buyers, and other relevant stakeholders, regarding the renewal of AGOA,” the statement reads.

The government welcomed progress on the bill, describing the House vote as a positive signal for Lesotho’s export-driven economy.

“The Government of Lesotho warmly welcomes and strongly commends the decisive bipartisan move towards the passage of the African Growth and Opportunity Act (AGOA) Extension Act, H.R. 6500. As Basotho, we look forward with hope to a sustainable decision from the administration of the United States of America,” the statement said.

The AGOA Extension Act (H.R. 6500) seeks to extend trade preferences through December 31, 2028, providing continued duty-free access to the US market for most exports from eligible sub-Saharan African countries. Currently, 32 countries qualify for AGOA benefits. The bill also extends customs user fees and merchandise processing fees through December 31, 2031, ensuring continuity in the administration of US trade imports.

The bill maintains AGOA’s special provisions for apparel. These include duty-free treatment for certain clothing exports and the third-country fabric provision, which allows lesser-developed countries to use imported fabrics, while still qualifying for duty-free access to the US market.

This flexibility has been central to the survival of Lesotho’s garment factories, which largely rely on imported textiles. The bill also provides for the refund of duties on qualifying goods that entered the US after September 30, 2025, but before the bill’s enactment, offering relief to exporters caught in any interim uncertainty.

Summary

  • The African Union (AU)’s appeal to the United States (US) Senate to pass the African Growth and Opportunity Act (AGOA) Extension Act has revealed the continent’s continued reliance on preferential access to the US market as a pillar of trade and employment especially for export-dependent economies such as Lesotho.
  • “As the bill proceeds to the United States Senate, the Chairperson appealed to the Senate to give favourable and timely consideration to the extension, in a spirit that upholds partnership, and shared strategic interests,” the AU said.
  • “The African Union Commission reaffirms its commitment to working closely with the Government of the United States, Congress, and all stakeholders to ensure that AGOA continues to serve as a bridge for economic cooperation and a symbol of the enduring friendship between Africa and the American people,” Mr Youssouf said.
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