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The temporary extension of the Africa Growth and Opportunity Act (AGOA) to 31 December 2026 provides short-term relief for African exporters but highlights significant long-term uncertainty. As a unilateral trade preference programme, AGOA remains vulnerable to political and regulatory changes, including sudden withdrawal of benefits or shifts in country eligibility.
25 March 26
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While the agreement continues to support key sectors such as textiles, agriculture, and manufacturing, its short extension limits long-term investment planning and exposes businesses to potential tariff risks. Companies are therefore encouraged to proactively assess their reliance on AGOA by auditing revenue exposure, reviewing supply chains for rules-of-origin compliance, and stress-testing contracts against possible policy changes.
The article emphasises the need for businesses to strengthen risk management strategies, engage with government stakeholders, and explore alternative export markets to reduce dependency on AGOA. Ultimately, the extension should be treated as a window for preparation rather than certainty, with legal and commercial teams urged to plan now for a post-2026 landscape.
Should you have any questions about this article, do not hesitate to contact Chris Green.
This article was first published by Lexology.