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By Merit Ibe
The African Growth and Opportunity Act (AGOA) is in its twilight judging by the United States tariffs recently imposed on Nigeria and other African countries.
Rather than sulk, analysts say it is time for the continent to adapt to a new era of global trade and position itself to convert uncertainties into opportunities using the African Continental Free Trade Area (AfCFTA) as the fulcrum.
AGOA, a key component of the US-Africa trade relations since 2000, which has played a key role in shaping Africa’s export industries, is set to end on September 30, 2025.
Since its inception, the AGOA has granted eligible African countries duty-free access for eligible products to the USA; significant competitive tariff advantages over non-AGOA countries; encouragement of regional integration and production sharing among beneficiary countries.
According to a report by BACITI Economic Insight, Africa is not the target of the US tariffs, but it is caught in the crossfire.
“From loss of trade preferences to commodity risks, Africa faces both a challenge and a wake-up call to strengthen regional integration via African Continental Free Trade Area (AfCFTA), diversify exports, and compete globally without reliance on preferential access.
“Many African countries rely on preferential access to the US market under AGOA, which granted duty-free treatment to thousands of African exports.
“African manufacturers who invested with AGOA preferences in mind are now at risk.”
However, to navigate a post-AGOA world, experts have advised that African governments, businesses and regional institutions can focus on strategies to strengthen Africa’s trade backbone through the AfCFTA, which is the world’s largest free trade area by number of participating countries.
If fully implemented, experts believe the AfCFTA could transform Africa’s economic landscape by reducing dependence on external partners, fostering regional value chains, and promoting local manufacturing.
Developing and executing AfCFTA strategies aligned with each country’s trade priorities is essential.
Many African countries, including Nigeria have underutilised the benefits of AGOA since it started, but with the legislation coming to an end, Africa should shift from reliance on trade preferences toward building resilient, self-sustaining economic systems.
The AfCFTA can support this transition by harmonizing financial regulations, promoting regional investment and fostering deeper capital markets.
Experts believe that AGOA’s sunset is not an end but a strategic inflection point.
The Director, Centre for Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said the Donald Trump administration has practically brought closure to the AGOA trade window.
Expressing uncertainty surrounding AGOA’s future, Yusuf highlighted that AGOA has helped Nigerian industries, especially in textiles, diversify exports and attract investment.
However, the Nigerian economy may be affected indirectly in some other ways.
“But there are also opportunities for new trade partners globally. Many countries that are victims of the current trade war would seek new bilateral trade relationships, which may create opportunities for Nigerian investors. It is time to leverage the AfCFTA for a better future.
“Rather than waiting for an unlikely official decision on AGOA’s renewal, African governments have the chance to proactively shape a trade strategy.”
President, Organisation of Women in International Trade (OWIT), Blessing Irabor-Oza, emphasised the need for African countries to work together to implement the AfCFTA to shape a trade strategy that is regionally integrated, digitally enabled and geopolitically informed.
“Africa can build a future-ready trade system by accelerating AfCFTA, deepening financial markets and championing digital innovation.
“While trade between African countries has increased in some sectors, AfCFTA’s full benefit is yet to be realised. Logistic costs are still very high when trading within Africa than when trading with Western countries and there are several factors that have contributed to this. It boils down to infrastructure; many African countries lack well-maintained roads, railway lines, some don’t even have a real railway line.
“We lack efficient ports. Customs and their bureaucracies, border delays and complex trade regulations, at the end of the day add to the price of goods and make trading difficult. We have limited shipping routes, very few direct flights and shipping routes across Africa. All these are the challenges that we must fix to accelerate intra-African trade.”
To accelerate implementation, she said governments must move from broad commitments to targeted national actions.
“To be self-reliant, deeper capital markets and harmonised financial regulations are a must. We must shift from reliance on trade preferences toward building resilient, self-sustaining economic systems. AfCFTA can support this transition by harmonising financial regulations, promoting regional investment and fostering deeper capital markets.”
