MBABANE-The extension of the African Growth and Opportunity Act (AGOA) to December 2028 has been described as one that marks a positive development for Southern Africa, providing continued access to the United States market and creating renewed opportunities for trade, investment and economic growth across the region.
On the SADC Facebook page, the decision has been described as one that delivers greater certainty for exporters, investors and workers who rely on trade with the United States, while providing member countries with additional time to strengthen productive capacity, expand value-added exports and advance regional industrialisation objectives.
Since its inception in 2000, AGOA has served as an important catalyst for economic development across eligible Sub-Saharan African countries.
“By granting duty-free access to the United States market for more than 7 000 products, the programme has enabled businesses to reach new customers, attract investment and create employment opportunities in key sectors such as textiles, apparel, agriculture, minerals, and automotive manufacturing,” it was mentioned on the SADC page.
It was highlighted that for many SADC Member States, AGOA has contributed to export growth, enhanced competitiveness, and increased participation in regional and global value chains. The programme has also encouraged business expansion and supported the development of manufacturing industries that generate income and employment.
The experience of countries such as Lesotho demonstrates the transformative potential of preferential market access when combined with strategic investment and supportive policies. Through AGOA, Lesotho successfully expanded its apparel industry, attracted foreign direct investment, and created thousands of jobs, particularly for women.
“Beyond employment creation, the growth of export-oriented industries has contributed to skills development, increased industrial capacity, and strengthened regional supply chains. These achievements illustrate how market access can support broader socio-economic development and help countries move towards higher-value production,” it was highlighted.
Also, it was said that with continued access to the United States market, businesses are better positioned to plan production, maintain export relationships, and explore new investment opportunities. The extension also creates space for governments and the private sector to focus on enhancing productivity, promoting value addition, and expanding manufacturing capabilities.
“Importantly, the extension can support efforts to deepen local and regional value chains, enabling businesses to source more inputs within the region and increase the economic benefits generated from exports. The extension of AGOA to December 2028 is a welcome development that reinforces the strong trade relationship between the United States and Sub-Saharan Africa”.
Sourced from SADC Facebook page.
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