The US Congress has approved a three-year extension of the African Growth and Opportunity Act (Agoa), a development government and industry players say provides reassurance for local exporters who faced possible loss of duty-free access to the US market. The trade pact, which provides Malawi and other sub-Saharan African countries with duty-free access to the US market, lapsed last October after a brief expiration, prompting concerns that the delay could disrupt African exports, harm businesses and weaken trade relations between the continent and the US. On Monday, the US House of Representatives voted decisively in favour of the extension.
In a statement after passing the Agoa Extension Bill into law, US House of Representatives Ways and Means Committee chairperson Jason Smith said with the vote, the programme continues its history of bipartisan support as it is key for countering the threats to America’s strategic and economic security. He said: “A swift reauthorisation will ensure the United States can support reliable trading partners and deny nations that seek to exploit resources and spread harmful influence around the world more room to advance their interests.” “I’m excited to have another Ways and Means Bill go to President Trump’s desk for his signature to become law.” In an interview on Tuesday, Ministry of Industrialisation, Business, Trade and Tourism spokesperson Patrick Botha said the extension is important given that Malawian exports were subjected to a 15 percent US tariff in 2025. He said: “For over 25 years, Agoa has supported Malawi’s exports of products such as tobacco, sugar, macadamia nuts, textiles and apparel, helping generate foreign exchange and maintain competitiveness in the US market.
“At the same time, Malawi will continue to pursue market diversification, including through the African Continental Free Trade Area [AfCFTA], to strengthen resilience and expand export opportunities.” In 2023, Malawi joined other African countries to push for an early 10-year extension of Agoa trade window beyond 2025 Agoa extension offers much-needed certainty to African businesses and US importers, but its future was uncertain due to major changes in US trade policy concerning Africa and other regions. Following the trade policy shift, the US announced a 15 percent tariff for Malawi in April 2025, an indication that companies take goods into the US will have to pay the taxes regardless of the existing trade deal, which includes Agoa. In an interview on Tuesday, National Working Group on Trade and Policy chairperson Frederick Changaya observed that whether Malawi exploits the market or not and to what extent depends on the policy choices and what the private sector players choose to do about it.
