MBABANE – This is excellent news!
Minister for Commerce, Industry and Trade Manqoba Khumalo said this in reaction to the news that the United States (US) House of Representatives, which on Monday passed a three-year extension of the African Growth and Opportunity Act (AGOA), offering a potential lifeline for the US’s flagship trade initiative with Eswatini and the continent.
AGOA originated from a United States (US) trade initiative signed into law by President Bill Clinton in May 2000, aiming to strengthen US economic ties with sub-Saharan Africa by offering duty-free access to the US market for thousands of products, promoting economic growth, democratic reforms and increased trade with the continent.
AGOA was built upon the existing Generalised System of Preferences (GSP) by extending even broader market access to encourage African countries to adopt free-market policies and good governance.
Meanwhile, Khumalo said: “We have been aware of the parliamentary process (Congress and Senate) in the US and we are happy it has yielded this result. It’s very good news for our private sector and I’d like to thank the US Government for this kind gesture once again.”
The minister was sought to expand on what does the proposed extension of AGOA mean for Eswatini’s trade prospects with the United States and how government is positioning local industries to maximise the benefits while meeting AGOA eligibility requirements.
Eswatini is among 32 countries that are set to benefit from this opportunity. The act, which provides Eswatini, along with other African manufacturers in eligible countries, with tariff-free access to the US market, was allowed to lapse on September 30 by the President Donald Trump Administration.
However, it was reported by African Business, an online publication, that a proposed extension until December 31, 2028, sponsored by Republican Congressman Jason Smith, will now head to the Senate for approval after the House voted 340-54 in favour.
It was reported that the vote suggests strong bipartisan support in the lower chamber for AGOA, which was first approved by Congress in 2000.
Leading to the lapse of the legislation in September 2025, 32 African countries were AGOA beneficiaries. For the eligibility of each State, they must meet governance criteria and be committed to market-based economics to benefit from the Act.
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… BE welcomes AGOA extension
MBABANE – Business Eswatini (BE) has welcomed the decision by the United States House of Representatives to pass a three-year extension of the African Growth and Opportunity Act (AGOA).
BE described this development as a positive and timely development for Eswatini’s private sector.
BE Chief Executive Officer Nathi Dlamini said the approval came as welcome news against the backdrop of an increasingly uncertain global trading environment.
“Against the backdrop of an unpredictable global trading system, especially in recent months, the success of our application for the renewal of AGOA had been very much a matter of speculation at best. As such, we are most grateful to receive the good news that it has been renewed,” said Dlamini.
He said the private sector had spent much of 2025 preparing for the possibility that the programme would not be renewed, given shifting trade policies in the United States and a growing scepticism towards international trade agreements.
“You will be interested to know that we had been working on and planning for a worst-case scenario throughout 2025, as the prospects of success for another round of renewals were discernibly dim. As you know, tariffs have become the new operative word in the US, and many countries have not been left unscathed,” Dlamini said.
He said the House vote was, therefore, a significant relief for businesses that depend on access to the US market, particularly exporters who were facing uncertainty about future costs and competitiveness.
“We are, therefore, pleased as a private sector with the positive outcome and extend our sincere thanks to the US Congress for a wise decision,” he said.
*Full article available on Pressreader*
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