African manufacturers warned on Wednesday that a one-year extension of a US duty-free trade deal offers relief, but threatens long-term investment certainty.
President Donald Trump renewed the African Growth and Opportunity Act, known as AGOA, until the end of 2026.
For 25 years, AGOA has underpinned US-Africa trade, allowing billions of dollars in duty-free exports from selected African nations.
The deal expired in September amid Washington’s scepticism towards free trade, returning only with new demands and limited duration.
US Trade Representative Jamieson Greer said AGOA must now deliver greater access for American businesses, farmers and ranchers.
In Kenya, garment exporters welcomed the move, but warned the short extension undermines confidence among buyers and investors.
Pankaj Bedi, chief executive of United Aryan in Nairobi, said the renewal offers breathing space, but no long-term security.
His factory narrowly survived higher tariffs last year, keeping US clients while 10,000 workers faced potential collapse.
AGOA covers 32 African countries, supporting tens of thousands of jobs across manufacturing, agriculture and energy sectors.
Exports under the programme totalled $8.23 billion in 2024, led by South Africa and Nigeria, according to US data.
Lesotho, heavily reliant on textile exports, saw protests after tariffs triggered factory cuts and rising worker anxiety.
African governments and unions now urge a longer agreement, warning that uncertainty could quietly drain factories and future investment.
