By Carlos Kpodiefin
The U.S. House of Representatives has approved the AGOA Extension Act (H.R. 6500), providing for a three-year extension of the African Growth and Opportunity Act. The decision reinforces a central pillar of economic relations between Washington and sub-Saharan Africa, with far-reaching implications for African trade, logistics and supply chains, at a time of heightened geopolitical competition.
AGOA, the cornerstone of US–Africa trade relations
Adopted in 2000, the African Growth and Opportunity Act (AGOA) remains the main preferential trade framework governing African access to the US market. The program allows eligible sub-Saharan African countries to export thousands of products to the United States duty-free, notably in textiles and apparel, agro-processing, manufactured goods, and selected strategic raw materials.
For many African economies, AGOA has played a structuring role in their integration into global supply chains, supporting industrial development, export diversification and value-added production.
Strict governance and security eligibility requirements
AGOA stands out for having some of the most stringent eligibility criteria of any US trade preference program. Beneficiary countries must demonstrate clear commitments to:
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the rule of law and political pluralism,
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anti-corruption measures,
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respect for human rights,
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protection of intellectual property rights,
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market openness and fair competition.
The framework also requires that participating countries do not undermine US national security or foreign policy interests, giving AGOA a strong economic, political and strategic dimension.
Avoiding a strategic vacuum in Africa
Supporters of the H.R. 6500 bill argue that a prolonged lapse of AGOA would create a strategic vacuum that other global powers—particularly China and Russia—would seek to fill.
Africa is home to approximately 30% of the world’s critical mineral resources, which are essential for technology, energy transition and defense industries. China has already invested between US$8 billion and US$10 billion across the continent in an effort to secure and dominate these strategic supply chains.
In this context, extending AGOA is widely viewed as a geo-economic counterbalance, aimed at preserving US influence in African trade, logistics infrastructure and supply chain development.
AGOA’s impact on logistics and African supply chains
Operationally, AGOA has contributed to the development of African logistics corridors, expanded maritime trade routes between Africa and the United States, and strengthened air cargo capacity for high-value exports.
In countries such as Kenya, Ethiopia, Lesotho and Ghana, the program has supported the emergence of industrial and logistics hubs linked to the US market, driving investment in ports, special economic zones, and supply chain management systems across Africa.
A three-year extension to secure investment and continuity
The House-approved bill renews AGOA for three additional years, providing short-term but critical visibility for African exporters, international investors and stakeholders in transport and logistics across Africa.
This transitional window is seen as essential to:
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secure existing supply chains,
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attract new industrial investments,
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encourage export diversification beyond raw materials,
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deepen Africa’s integration into global trade flows.
A strong signal with limited long-term certainty
The extension of AGOA sends a strong political and economic signal to sub-Saharan African countries and to actors involved in African logistics and supply chains. It reaffirms the continent’s strategic importance in global trade and in critical value chains.
However, the limited duration of the extension also underscores the urgency for African economies to diversify export markets, strengthen logistics and transport infrastructure, and build more resilient supply chains capable of adapting to a rapidly evolving geopolitical environment.
