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President William Ruto on Thursday urged the United States to expedite the renewal of the African Growth and Opportunity Act (AGOA) to provide new markets and sustain Kenya’s economic growth. He made this remark during a meeting with President Joe Biden at the White House.
Enacted in May 2000, AGOA is the cornerstone of U.S. economic engagement with sub-Saharan Africa. The act has broad bipartisan support in the United States and represents a long-term commitment to the region.
In June 2015, the U.S. Congress overwhelmingly approved legislation to re-authorize AGOA for an additional ten years. This renewal signaled to investors the confidence and stability in investing in Africa.
Since its inception, total African exports under AGOA have more than quadrupled. By June 2015, AGOA-eligible countries had exported nearly $480 billion worth of goods to the United States under AGOA and the U.S. Generalized System of Preferences. The program has succeeded in helping eligible nations grow, diversify their exports to the U.S., and create employment and inclusive economic growth. AGOA provides duty-free access to the U.S. market, enabling eligible countries to export a wide range of products, including value-added manufactured items such as textiles.
AGOA has been pivotal in promoting economic growth and development in Africa. It offers the most liberal access to U.S. markets for eligible sub-Saharan African countries, apart from regions with a Free Trade Agreement with the U.S. This preferential trade agreement has facilitated investment, created business linkages, and unlocked opportunities for entrepreneurship in the region.
By urging the renewal of AGOA, President Ruto aims to ensure that Kenya and other eligible African nations continue to benefit from this crucial trade program, fostering economic stability and growth across the continent.
