Ghana’s Minister for Foreign Affairs, Samuel Okudzeto Ablakwa, has expressed optimism over the imminent extension of the African Growth and Opportunity Act (AGOA), following its overwhelming approval by the United States House of Representatives and pending endorsement by the U.S. Senate.
AGOA, a flagship U.S.–Africa trade framework established in 2000 under President Bill Clinton, provides eligible Sub-Saharan African countries with duty-free and quota-free access to the U.S. market for selected products, particularly in agriculture, textiles, and manufacturing.
The future of the trade instrument had remained uncertain after its expiration in 2025, amid policy shifts under the Trump administration, including the imposition of average tariffs of about 15 per cent on African exports undermining the duty-free benefits previously enjoyed by beneficiary countries.
However, on Monday, the U.S. House of Representatives passed a three-year extension of AGOA by a decisive 340–54 vote, extending the programme until 31 December 2028. The bill, sponsored by Republican Congressman Jason Smith, now awaits final approval by the U.S. Senate.
Reacting to the development during the high-level visit, Mr. Ablakwa highlighted AGOA’s potential to significantly boost Ghana’s textile and apparel industry, noting its strong link to job creation and local value addition.
“The U.S. conveyed another great piece of news, specifically relating to the African Growth and Opportunity Act (AGOA). The House of Representatives voted massively on Monday by 340 to 54 to extend AGOA by three years.
We expect final endorsement by the Senate shortly. This positive development will boost local garment production and create more jobs,” the Foreign Minister stated.
Ghana’s textile and apparel exports to the U.S. under AGOA reached approximately US$9.5 million in 2020, reflecting growth potential that government-led industrial initiatives are expected to further unlock.
Beyond textiles, the extension is expected to benefit Ghana’s oil and gas sector, which remains the country’s largest U.S.-bound export category, as well as the agricultural sector, where cocoa exports to the U.S. stood at US$196 million in 2020.
The renewed AGOA framework also reinforces Ghana–U.S. trade relations, which have expanded significantly, from US$206 million in 2000 to nearly US$4 billion, according to briefings by U.S. Embassy officials in Ghana last year.
In 2022 alone, Ghana’s exports to the U.S. reached US$2.76 billion, although only 26 per cent of that trade was conducted under AGOA.
According to projections by the International Trade Centre, failure to extend AGOA could have resulted in export losses of up to US$189 million by 2029 yo African beneficiaries The extension offers critical relief for African economies, including Ghana, as the country continues efforts to stabilise and strengthen its economy following the challenges of 2024.
By Richmond Fordjour Ampofo
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