AGOA: What’s Next for U.S.–Africa Trade Relations?
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GUEST – Donald MacKay, CEO of XA Global Trade Advisors
The African Growth and Opportunity Act (AGOA) officially expired on 30 September 2025, ending more than two decades of duty-free access for African exports to the U.S. market. The lapse has sent shockwaves through key industries from South Africa’s automotive and citrus exporters to Kenya and Lesotho’s textile manufacturers, all of which built their competitiveness around the trade preferences AGOA offered.
With the agreement now lapsed, many African exporters are confronting steep tariff increases some as high as 30 and an immediate hit to orders, pricing, and margins. South African vehicle exports to the U.S. have already fallen sharply this year, while agriculture producers warn that higher costs could squeeze out smaller farmers and threaten thousands of jobs across the citrus value chain. Across the continent, apparel factories are reporting cancelled contracts and looming layoffs.
Although there is bipartisan support in Washington for a short-term renewal, no firm agreement has been reached. In the meantime, African exporters are in limbo facing rising costs, cautious buyers, and fading competitiveness. In this interview, we look at how businesses are coping in the post-AGOA environment, what the expiry means for trade, jobs, and investment, and how the region might reposition itself in a world where preferential access to the U.S. is no longer guaranteed.
The African Growth and Opportunity Act (AGOA) officially expired on 30 September 2025, ending more than two decades of duty-free access for African exports to the U.S. market. The lapse has sent shockwaves through key industries from South Africa’s automotive and citrus exporters to Kenya and Lesotho’s textile manufacturers, all of which built their competitiveness around the trade preferences AGOA offered.
With the agreement now lapsed, many African exporters are confronting steep tariff increases some as high as 30 and an immediate hit to orders, pricing, and margins. South African vehicle exports to the U.S. have already fallen sharply this year, while agriculture producers warn that higher costs could squeeze out smaller farmers and threaten thousands of jobs across the citrus value chain. Across the continent, apparel factories are reporting cancelled contracts and looming layoffs.
Although there is bipartisan support in Washington for a short-term renewal, no firm agreement has been reached. In the meantime, African exporters are in limbo facing rising costs, cautious buyers, and fading competitiveness. In this interview, we look at how businesses are coping in the post-AGOA environment, what the expiry means for trade, jobs, and investment, and how the region might reposition itself in a world where preferential access to the U.S. is no longer guaranteed.
