The African Growth and Opportunity Act (AGOA), established in 2000, was designed to enhance trade between the United States and eligible sub-Saharan African countries by providing duty-free access to the U.S. market for over 1,800 products, including textiles and agricultural goods. As of today, this initiative aims to stimulate economic growth and development in Africa by promoting exports to the U.S.
Please note that the figures mentioned are subject to change, as AGOA is a topic of ongoing discussion and the scope of eligible products may evolve over time.
However, in April 2025, the U.S. government imposed steep tariffs on several African nations, citing the need for “reciprocal” trade measures. These tariffs effectively undermine the benefits previously afforded under AGOA, casting uncertainty over the future of U.S.-Africa trade relations.
Impact on Procurement in Textiles and Agriculture
Textiles: Lesotho and Madagascar
Lesotho, a country heavily reliant on textile exports to the U.S., faces a 50% tariff, threatening approximately 40,000 jobs in its garment industry. The U.S. administration justified this tariff by alleging that Lesotho imposes a 99% tariff on American goods, a figure disputed by the Lesotho government.
Madagascar’s textile sector, employing around 180,000 people and contributing significantly to its GDP, is at risk due to a 47% tariff. This could result in the loss of approximately 60,000 jobs, severely impacting the nation’s economy.
Agriculture: South Africa’s Citrus Industry
South Africa’s citrus industry, supporting about 35,000 jobs, is experiencing pressure from increased tariffs, leading to concerns about job losses and economic stability in the sector. The new 31% tariff will add $4.25 per carton to the cost of South African citrus in the U.S., making it less competitive compared to other exporters.
Strategies for Mitigation
To address these challenges, African nations are exploring several strategies:
- Diversification of Export Markets: Countries like South Africa are seeking to expand their trade relationships beyond the U.S., focusing on Asia, Europe, and intra-African trade to reduce dependency on a single market.
- Strengthening Regional Trade Agreements: The African Continental Free Trade Area (AfCFTA) presents an opportunity to bolster intra-African trade, providing a buffer against external trade shocks.
- Engaging in Diplomatic Negotiations: Affected countries are initiating dialogues with the U.S. to seek exemptions or revisions to the imposed tariffs, aiming to restore favorable trade terms.
- Investing in Value Addition: By focusing on processing raw materials domestically, African nations can increase the value of their exports, making them more competitive globally and less susceptible to raw commodity price fluctuations.
The imposition of U.S. tariffs poses significant challenges to African procurement, particularly in textiles and agriculture. While these developments threaten the gains achieved under AGOA, they also present an impetus for African nations to diversify their trade partnerships, strengthen regional cooperation, and invest in value-added production to build more resilient economies.
Sources:
AP News – How tiny Lesotho ended up with the highest US tariffs in the world
African Farming – Citrus growers sound alarm over US tariff on exports
Global Voices – How is Africa affected by the US-China tariff war?
AInvest – Trump’s Tariff Threat: How Lesotho’s Textile Lifeline Faces a Liquidity Meltdown
Further Africa – Trump Tariffs on African Trade: A Temporary Reprieve Amid Lingering Doubts
