AGOA’s renewal is America’s strategic advantage

By Pankaj Bedi

Trade, like a tango, is a dance of rhythm and precision. For more than two decades, the African Growth and Opportunity Act (AGOA) has been the music that allowed Africa and the United States to take those steps together, building a framework that has not only facilitated commerce, but also redefined relationships across the Atlantic. This has led to the symbiotic relationship between Africa and USA with the two countries enjoying a flourishing commercial partnership. AGOA also has some conditions aligned to it including good governance and this has led to social and political reforms in Sub-Saharan Africa. Now, as renewal approaches in 2025, the question is whether the music continues, or whether the floor grows silent.

When AGOA enters debate, attention often turns to what Africa must do: strengthen governance, improve compliance, attract investment, and boost competitiveness. These responsibilities are real. Yet America must also look inward. What does it gain if AGOA is renewed with certainty? And what does it lose if it lapses or is extended only in short increments? The answer is not only about Africa. It is about America’s own economic resilience, its leverage in global trade, and the stability of supply chains that keep U.S. households supplied with everyday essentials.

AGOA has always been about building a commercial bridge. For two decades, that bridge has brought tangible benefits to American families: affordable clothing stocked on shelves at Walmart, Costco, and Ross. These are not luxuries but necessities. If AGOA expires, production will not return to U.S. factories. Instead, retailers will lean even more heavily on suppliers in Asia, where Washington already faces challenges to negotiate favourable terms.

This is why AGOA’s renewal is a strategic move. It diversifies sourcing, stabilizes costs for American households, and reduces vulnerability in turbulent times. Or as one might put it: AGOA is not a program to be granted but a strategic alliance to be secured.

America’s leverage with Asia depends on options. Today, the U.S. relies heavily on Asian suppliers for consumer products, from toys and apparel to sportswear and household goods. That

dependency comes at a price: when Washington raises concerns on trade imbalances, intellectual property, or geopolitical tensions: what options does the US have? AGOA comes in strongly as a source of manufactured, agricultural and resource-based products; thus the need to focus on ensuring that a sustainable framework to support market access exists. America needs to anchor its presence in Africa now, transforming the continent to its counterbalance 3rd party country’s aggression, a partner that ensures America’s future negotiations with 3rd parties are conducted on America’s terms owing it its diversified supply chain.

But herein lies the opportunity: Africa can become the parallel hub. By cultivating African economies as a complementary sourcing base, America not only diversifies supply chains but also strengthens its negotiating hand. With another competitive platform for manufacturing and consumer goods, U.S. trade envoys can engage Asia from a position of strength, not dependence. The pathway is clear, Africa offers untapped capacity in textiles, apparel, toys, and sportswear, and with the right investment and trade partnerships, it can reduce global overconcentration in Asia while creating sustainable growth at home.

The opportunity also extends to Africa’s own consumer base. By 2050, more than two and a half billion people will live in the continent, many entering the middle class. The African Continental Free Trade Area (AfCFTA) is creating one of the world’s largest integrated markets. This is not only about apparel. While clothing exports have been the visible success story, Africa’s potential stretches far wider. Whereas agro-processing can position the continent as a reliable supplier of foods and beverages, shoes and leather goods are natural next steps, as well as toys, sportswear, and light manufacturing, which can scale with Africa’s young workforce. With training and investment, even consumer electronics assembly could gradually find a base. For American companies producing in Africa today, this means not only serving immediate U.S. consumers but also aligning with Africa’s expanding appetite for these same goods. That is foresight; an investment that grows alongside Africa’s transformation.

Beneath the trade figures lies a human story. Since inception, AGOA has supported millions of jobs, especially for women, who form the backbone of Africa’s apparel sector. Their wages provide food, school fees, and healthcare for families. These are not mere benefits, but livelihoods built on dignity and productivity. For America, too, there is dignity in knowing that supply chains are anchored in transparency and aligned with U.S. standards.

The path forward is clear. Congress ought to renew AGOA decisively, well before its expiration on 30th September 2025, because last-minute uncertainty destabilizes factories long before the trade agreement actually lapses. A long-term extension, ideally through 2045, would give investors and buyers the predictability to commit serious capital. It is paramount that key provisions such as the rules of origin remain intact, since altering them now would undo two decades of progress. Above all, Washington should think alliance, not program. Continuity must

come first; once that foundation is secured, complementary measures from skills training and infrastructure to buyer incentives, can follow and magnify AGOA’s impact.

At this moment, America and Africa stand at a crossroads. AGOA can be treated as a temporary concession, or it can be embraced as the cornerstone of a lasting alliance, one that secures affordability for U.S. families, expands America’s global options, and positions U.S. businesses at the centre of Africa’s future consumer landscape.

Like the tango dance, this partnership requires rhythm, balance, and intent. The choice before Washington is not about generosity but foresight. Extending AGOA is the step that ensures both partners continue the dance, stronger together, and prepared for the future.

The writer is the Apparels Manufacturers and Exporters (EPZ) Sector Chair and a Board Member of Kenya Association of Manufacturers and can be reached at info@kam.co.ke.