Making AGOA Work for Africa

This policy briefing by the South African Institute of International Affairs evaluates the African Growth and Opportunity Act (AGOA), arguing that while it provides duty-free access to the US market, it remains underutilised. The author proposes a four-pillar strategy for the October 2015 renewal: timely and extended renewal, addressing non-tariff barriers, improving structural competitiveness through infrastructure and finance, and aligning with global trading shifts like the TPP and TTIP.

• AGOA has failed to reach its full potential, with US imports from Africa remaining heavily dependent on energy commodities, which constitute 88% of exports from AGOA countries to the US, excluding South Africa.
• The author recommends that AGOA be renewed before its October 2015 expiration for a period of at least 10 years to provide investors with the long-term certainty needed to recoup start-up costs in African markets.
• To maintain regional value chains, the author argues that larger African economies, specifically South Africa and Nigeria, must be included in the renewal, as smaller nations rely on their industrial bases to access the US market.
• Non-tariff barriers, including complex bureaucracy and restrictive rules of origin, hinder trade. The author suggests expanding the US Trade Hubs programme and creating special exceptions for rules of origin for least-developed African countries.
• To improve structural competitiveness, the US should implement tax breaks for repatriated earnings from non-commodity investments in Africa to encourage private sector investment and support the development of African capital markets.
• The author suggests that the US and EU should create a common regulatory system under the Transatlantic Trade and Investment Partnership (TTIP) to reduce the cost for African exporters to meet dual standards.
• To ensure AGOA remains relevant against the Trans-Pacific Partnership (TPP), the author proposes allowing 'cumulation' from AGOA states, treating their inputs as if they originated within the TPP group.

APA

Wood, C. (2015). Making AGOA Work for Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2015/02/Policy-Briefing-127.pdf

Chicago

Wood, Christopher. Making AGOA Work for Africa. South African Institute of International Affairs, 2015. https://saiia.org.za/wp-content/uploads/2015/02/Policy-Briefing-127.pdf.

Wikipedia

{{cite report |last1=Wood |first1=Christopher |title=Making AGOA Work for Africa |publisher=South African Institute of International Affairs |date=February 2015 |url=https://saiia.org.za/wp-content/uploads/2015/02/Policy-Briefing-127.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wood2015making, author = {Wood, Christopher}, title = {{Making AGOA Work for Africa}}, institution = {South African Institute of International Affairs}, year = {2015}, month = feb, url = {https://saiia.org.za/wp-content/uploads/2015/02/Policy-Briefing-127.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }