Post-AGOA: A catalyst for Africa’s economic self-reliance and continental prosperity

The expiration of the African Growth and Opportunities Act (AGOA) on 30 September 2025 signals a pivotal moment for Africa’s economic trajectory. Since its inception in 2000, AGOA fuelled African aspirations by providing duty-free access to the lucrative US market - a beacon for growth, jobs and infrastructure development across Sub-Saharan Africa (SSA). But with its demise, the continent faces both a challenge and an unprecedented opportunity to redefine its economic destiny beyond dependency.While AGOA served as a vital bridge for SSA exports, ranging from textiles and apparel to critical minerals, it was always a transient tool rooted in geopolitical alliances. Its termination underscores a critical reality: Africa's reliance on external markets and policies makes it vulnerable to shifting foreign priorities. Yet, it also pushes the continent to look inward, accelerating efforts to harness Africa’s own resources and markets.For instance, the African continent boasts an abundance of critical minerals, such as the Democratic Republic of Congo’s cobalt and Namibia’s uranium, that are pivotal to global supply chains, especially in high-tech industries and renewable energy sectors. The potential for these minerals to enhance Africa’s position as a key player in the green economy is immense. If harnessed strategically, this could translate into millions of jobs, infrastructure growth, and continental industrialisation.The cost of losing AGOAData from Fitch Solutions reveal a stark reality: only 19 SSA countries exported mineral fuels under AGOA over its lifespan; this number had dwindled to just four by 2024, with Nigeria accounting for nearly 80% of those exports. Meanwhile, sectors such as textiles and apparel, once promising but increasingly sidelined, now contribute a marginal share of the region’s exports to the US. The risk? Africa’s markets may shrink further if the continent continues to rely on external preferences rather than building resilient intra-continental trade networks.The stark decline from US$9.3 billion in 2023 to US$8 billion in 2024 exposes the urgent need for diversification and enhanced regional integration. Relying solely on external market access can no longer serve as the growth strategy for Africa’s economies.Geopolitical realitiesThe geopolitical landscape is shifting rapidly. US protectionism, exemplified by the recent address to the United Nations, signals a retreat from open trade policies, favouring national interests over global cooperation. The implications for SSA are profound: deteriorating US relations with key partners such as South Africa, Kenya, Nigeria, Ghana, Angola and Namibia could disrupt trade flows and investment.For Namibia, for example, with less than 1% of exports directly linked to the US, the immediate tariff impact might be minimal. Yet Namibia’s wider trade landscape, dominated by OECD markets, remains vulnerable to global shifts. Meanwhile, other nations face varying degrees of risk, from political instability to commodity price fluctuations.Africa’s path forwardThe end of AGOA presents an urgent call for Africa to pivot from external dependence to proactive continental strategies. The African Continental Free Trade Area (AfCFTA), launched to eliminate tariffs and barriers within Africa, is vital in this regard. It embodies a collective push towards economic sovereignty.Strengthening digital trade platforms, industrial policies and intra-African investment flows can foster resilient economies less vulnerable to external shocks. Moreover, forging new trade partnerships within Africa and with emerging markets will be crucial. The continent must craft policies that prioritise local value addition, industrial development, and sustainable resource management. By doing so, Africa can unlock its full potential, transforming raw materials into finished goods and creating a large, integrated market that benefits all.Challenge as an opportunityThe expiration of AGOA marks neither the end of Africa’s economic prospects nor its ability to thrive independently. Instead, it heralds an era in which the continent must harness its natural resources, diversify its markets, and deepen regional integration to secure a prosperous future. If African nations approach this moment with strategic vision, investment in technology, and an commitment to continental unity, Africa can emerge as a formidable economic force: Profitable, self-reliant and truly independent. The time has come for Africa to write its own trade and development narrative - one that echoes across the continent and beyond.

Post-AGOA: A catalyst for Africa’s economic self-reliance and continental prosperity

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Republikein 2025-10-14

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Post-AGOA: A catalyst for Africa’s economic self-reliance and continental prosperity

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