Thousands of workers in limbo as US-Africa trade deal set to expire

September 30, 2025

The African Growth and Opportunity Act (Agoa), a critical U.S. trade law that has granted duty-free access for African goods to U.S. markets for 25 years, is set to expire on Tuesday, creating uncertainty for thousands of workers and businesses across Africa. At Shona EPZ, a garment factory in Nairobi that employs 700 people and produces sportswear for the American market, production has already slumped to about one-third of normal capacity as buyers hesitate on long-term orders. Kenya alone exported $470 million worth of clothing to the U.S. in 2024, supporting over 66,000 direct jobs, with three-quarters held by women.

Who is affected

66,000 direct workers in Kenya's apparel industry (75% women)
700 employees at Shona EPZ garment factory in Nairobi
Workers like Joan Wambui who support extended families with their wages
Former drug addicts and street youth who found employment and rehabilitation at factories like Shona EPZ
Over 30 African countries that currently export more than 6,000 products to the U.S. under Agoa
Businesses that have made significant investments, like Shona EPZ's $10 million investment

What action is being taken

African envoys are currently negotiating with the U.S. for an extension of Agoa
Kenya is simultaneously pursuing its own bilateral trade deal with the U.S.
African leaders are actively lobbying Washington, including at the recent UN General Assembly
African countries are seeking new markets to reduce their overreliance on the U.S.
Factories like Shona EPZ are continuing operations despite reduced output due to uncertainty

Why it matters

Agoa has been the cornerstone of U.S.-Africa economic relations for 25 years
The program has helped industrialize parts of Africa, created employment, and worked to lift countries out of poverty
Kenya exported $470 million worth of clothing to the U.S. in 2024 alone
For individual workers like Joan Wambui, these jobs provide dignity and financial stability
Without renewal, companies like Shona EPZ may have to shut down, losing their $10 million investment
The program has given African economies a stronger foothold in global trade
The factories provide rehabilitation opportunities for vulnerable populations

What's next

The White House has indicated support for a one-year extension, though this has not been officially announced
Kenya's President William Ruto expects to sign a trade deal with the U.S. by the end of the year
Kenya and other African countries are looking to establish transition mechanisms if Agoa is extended
African countries are exploring opportunities within the African free-trade area as an alternative market

Read full article from source: BBC