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AU Welcomes US Congress Move to Extend AGOA, Expanding Market Access for African MSMEs

Blessing Joseph by Blessing Joseph
January 15, 2026
in News, Trade
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AU Welcomes US Congress Move to Extend AGOA, Expanding Market Access for African MSMEs
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The African Union (AU) Commission has welcomed the bipartisan approval by the United States House of Representatives to extend the African Growth and Opportunity Act (AGOA) for another three years, describing the move as a major boost for African exports, small businesses, and industrial growth.

In a statement issued on Wednesday, AU Commission Chairperson Mahmoud Ali Youssouf praised the U.S. House for approving the extension on January 12, 2026, noting that the decision reflects strong bipartisan support for deepening U.S.–Africa trade and investment relations.

AGOA provides duty-free access to the U.S. market for more than 1,800 products from eligible African countries, covering sectors such as agriculture, apparel, manufacturing, and processed goods, areas where Micro, Small, and Medium Enterprises (MSMEs) play a critical role.

Youssouf said the program has, for over two decades, served as a pillar of economic cooperation between the United States and Africa, supporting industrialization, job creation, regional value chains, and inclusive growth across the continent.

“For over 20 years, AGOA has been a cornerstone of U.S.–Africa economic relations, strengthening trade, investment, and shared prosperity,” he said, adding that the scheme has reinforced Africa’s position as a reliable partner in global commerce.

As the bill proceeds to the United States Senate, the AU Chairperson urged lawmakers to give it favorable and timely consideration in the spirit of partnership and shared strategic interests. He reaffirmed the AU Commission’s commitment to working closely with the U.S. government, Congress, and other stakeholders to ensure AGOA continues to deliver tangible benefits for African economies.

AGOA, first enacted in 2000 and previously extended to 2025, has helped boost African exports to the United States by an estimated 150 per cent since inception, according to data from the U.S. Trade Representative. The program has also supported over 100,000 jobs across the continent, particularly in labor-intensive sectors such as apparel and agriculture.

Although the trade preference scheme officially expired in September 2025, the proposed extension would keep AGOA in force until 2028, providing renewed certainty for African exporters and investors. However, the AU noted that some countries, including Nigeria, have yet to fully maximise the opportunities offered by the program.

South Africa remains one of the largest beneficiaries of AGOA, especially in the automotive sector, exporting billions of dollars’ worth of vehicles and components to the U.S. annually, although ongoing diplomatic tensions may affect its future eligibility.

As the bill advances to the Senate, the African Union has called for swift passage, stressing that AGOA remains vital to sustaining trade partnerships, strengthening MSMEs, and promoting inclusive economic growth across the 32 eligible African countries.

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