African manufacturers have described a one-year extension of the US-Africa trade preference program, the African Growth and Opportunity Act (AGOA), as a temporary measure that fails to provide the certainty required for long-term investment. The renewal, signed by President Donald Trump on Tuesday, extends the duty-free access until the end of 2026 but falls short of the multi-year commitment sought by African businesses.
AGOA, a cornerstone of US-Africa trade relations for 25 years, permits eligible African nations to export thousands of products to the United States without duties. In 2024, trade under the initiative totaled $8.23 billion, with South Africa and Nigeria as the largest beneficiaries. The program lapsed for several months last year after expiring on September 30, amid a US administration broadly skeptical of long-term trade pacts. The new extension includes fresh demands for greater market access for American goods, as stated by US Trade Representative Jamieson Greer, who emphasized that a modernised AGOA must “yield more market access for US businesses, farmers, and ranchers.”
For many African exporters, the brief extension offers little reassurance. Pankaj Bedi, CEO of United Aryan, a Nairobi-based jeans manufacturer supplying US brands like Wrangler and Levi’s, said the company had absorbed costly tariffs during the lapse to retain clients, pushing its 10,000-strong workforce to the brink. “The extension gives us a breather, which is critical. But it won’t help with the long-term orders and investments to sustain us,” Bedi noted, adding that seasonal planning remains insecure.
The truncated timeline has sparked particular alarm in Lesotho, a major apparel exporter to the US. Hundreds of workers protested in October after US tariffs disrupted orders. Tsepang Makakole, a union leader, explained that initial negotiations aimed for a ten-year renewal, which was reduced to three years and now one. “Investors could say, ‘By this time next year, we should be out of Lesotho,’” he warned, citing eroding confidence in the US market.
South Africa’s government also expressed concern over the short duration, calling for a deal that provides predictability for investment decisions. With AGOA supporting tens of thousands of jobs across 32 African countries, stakeholders argue that annual renewals deter the capital expansion needed for industrial growth. The one-year window now pressures African governments and businesses to negotiate a more durable framework while managing immediate operational disruptions.
Analysts note that the extension averts immediate supply chain shocks but does little to reverse a trend of waning US commitment to continent-wide trade preferences. Without a long-term horizon, manufacturers may defer or cancel expansion plans, potentially shifting production to regions with more stable trade terms. The coming year will likely see intensified diplomacy as African nations seek to lock in a renewed, multiannual AGOA before the current reprieve expires.
