The United States is preparing to extend the African Growth and Opportunity Act (AGOA) by one year, a move that could bring relief to several African economies that rely heavily on the trade arrangement. Lesotho’s Trade Minister, Mokhethi Shelile, disclosed the plan after leading a delegation to Washington between September 15 and 19, where meetings were held with the U.S. House Ways and Means Committee and the Senate Finance Committee. He explained that officials had assured him the extension would be confirmed by November or December of this year, as reported by Reuters.
The AGOA framework allows eligible African countries duty-free access to U.S. markets, a policy that has long supported industries such as textiles, agriculture, and manufacturing across the continent. Lesotho has been particularly dependent on the agreement, with thousands of jobs in its textile sector tied directly to U.S. export demand. Tariff adjustments earlier this year placed pressure on the economy, as highlighted by trade analysts, after U.S. duties were raised to 50 percent before being reduced to 15 percent in August.
Shelile stressed that delays in finalising the extension could result in widespread job losses, especially for women who make up the majority of the workforce in Lesotho’s factories. He described the commitment from U.S. lawmakers as encouraging but warned that “implementation by year-end is essential to prevent further shocks to the economy.” His remarks were carried by Reuters in its coverage of the talks.
Despite Shelile’s assurances, no formal statement has been issued by the White House. Reports also stated that some Senate Democrats had not been briefed on the proposed extension, leaving room for uncertainty over the timeline. This underscores the political balancing act facing U.S. policymakers as they weigh trade benefits against domestic pressures.
AGOA, first enacted in 2000, is currently set to expire in September 2025. Figures from the Office of the U.S. Trade Representative show that AGOA has supported over $10 billion worth of African exports annually, making the decision on its future critical for countries like Lesotho, Kenya, Ethiopia, and South Africa. Analysts suggest that even a temporary one-year extension could provide breathing space for African economies while discussions on a longer renewal continue.
