The United States House of Representatives has passed a bill extending the African Growth and Opportunity Act (AGOA). This bill provides renewed trade certainty for African countries that rely on preferential access to the U.S. market.
The legislation, approved on Wednesday, seeks to extend AGOA beyond its current expiration date, easing concerns among African governments, exporters and investors who have warned that uncertainty over the programme’s future could disrupt trade flows and investment planning across the continent.
AGOA, first enacted in 2000, allows eligible sub-Saharan African countries to export thousands of products to the United States duty-free. As a result, the programme has been a cornerstone of U.S.–Africa trade relations. It supports exports in sectors such as textiles and apparel, agriculture, automotive components and light manufacturing.
What This Means For Africa
Trade certainty for African exporters
For African economies, the House vote signals continued access to the world’s largest consumer market. This is especially important at a time when many countries are seeking to diversify exports, boost non-oil revenues and create jobs. Apparel-producing countries such as Kenya, Ethiopia, Lesotho and Madagascar have been among the biggest beneficiaries. AGOA helps sustain hundreds of thousands of manufacturing jobs.
Trade analysts say the extension will also help African exporters maintain long-term supply contracts with U.S. buyers, who typically require regulatory certainty before committing to multi-year sourcing agreements.
Investment implications
Beyond trade, AGOA has played a key role in attracting foreign direct investment into export-oriented industries. Investors have often cited AGOA eligibility as a decisive factor when locating factories in Africa rather than Asia or Latin America.
The House decision is therefore expected to support continued investment in manufacturing, agro-processing and value-added production across eligible countries. However, analysts caution that delays or uncertainty in final approval could still affect investor confidence.
Governance and eligibility considerations
AGOA eligibility is reviewed annually and is tied to governance, human rights, rule of law and market-based economic reforms. In recent years, several African countries have been suspended over coups, democratic backsliding or trade-related concerns.
As a result, experts note that while the extension offers continent-wide benefits, individual countries must continue to meet eligibility requirements to fully leverage the programme.
The bill will now move to the U.S. Senate for consideration. If approved and signed into law by the President, it would formally extend AGOA. This would provide long-term clarity for U.S.–Africa trade relations.
African policymakers and business groups have welcomed the House vote, urging swift passage in the Senate to avoid last-minute uncertainty and to allow countries align AGOA with broader continental initiatives such as the African Continental Free Trade Area (AfCFTA).
