AAFA urges long-term AGOA renewal to boost US-Africa trade

Speaking at the annual review hearing (Docket Number USTR-2025-0012), Hughes stated that AGOA plays a pivotal role in driving US private-sector investment and employment across Africa and the United States. She shared testimonials from AAFA member companies, underscoring the impact of AGOA on business expansion and job creation.

Hughes said that one member company recently inaugurated a new garment factory in Togo, employing over 250 local workers trained over the past eight months. The company plans to expand the workforce to 500, with finished goods shipped to a US-based warehouse that employs more than 100 Americans.

She further noted that another US apparel company is preparing to construct a facility in Madagascar to relocate nearly 50 per cent of its production from China, Vietnam, and Indonesia. However, Hughes warned that this investment is entirely dependent on AGOA’s renewal, as losing duty-free access would render the project unviable.

In Ghana, a US company taking advantage of AGOA has become the country’s largest private employer, with over 6,000 workers and plans to double that number by year-end. Much of the company’s production has shifted from Asia to Ghana due to the cost competitiveness enabled by AGOA.

Hughes also mentioned a long-standing AAFA member, founded in 1987, that has fully transitioned production from China to Madagascar and Tanzania since 2007. The company now employs over 10,000 workers—mostly women—and supplies 50 million garments annually to over 60,000 US small businesses, supporting around 3 million American jobs.

She emphasised that AGOA’s third-country fabric rule is vital, as it allows apparel manufacturers in lesser developed AGOA countries to source inputs from outside the continent while textile infrastructure in Africa is still being developed. At present, African suppliers provide only about 10 per cent of the cotton yarn and fabric used by local apparel manufacturers.

To enhance AGOA’s effectiveness and utilisation, Hughes said AAFA supports several targeted improvements. These include converting the annual eligibility review to a triennial cycle, allowing cumulation from African Union countries that have ratified the African Continental Free Trade Area (AfCFTA), and replacing outdated textile visa requirements with modern customs cooperation. She also recommended adjusting apparel quotas and revising the graduation criteria for AGOA beneficiaries.

Calling AGOA a ‘success story,’ Hughes urged Congress and the Administration to renew the programme before the September 30 deadline and for the longest possible duration to provide certainty and encourage long-term investment.

“The time to act is now,” she said. “AGOA has helped build a strong foundation for economic partnership, industrial growth, and mutual prosperity between the US and Africa. Let’s not allow that progress to stall.”

ALCHEMPro News Desk (SG)