AGOA extension provides duty-free US market access through 2028

The United States has extended the African Growth and Opportunity Act (AGOA) until December 31, 2028, maintaining duty-free access to the American market for more than 30 African nations.

In Eswatini, the Ministry of Commerce, Industry and Trade expects the extension to bolster the textile, manufacturing, and agricultural sectors. Minister Manqoba Khumalo stated the move should increase production, employment, and investment opportunities, particularly for micro, small, and medium enterprises participating in export value chains.

For South Africa, the extension preserves existing trade advantages but faces ongoing economic hurdles. While the act helps mitigate some tariff risks, South African exporters continue to deal with significant Section 232 tariffs on vehicles and aluminum, as well as specific tariffs related to forced labor allegations affecting goods like wine and grapes. Analysts note that while the extension prevents further deterioration of trade conditions, it does not resolve broader structural challenges facing the South African economy.