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.
The legislation is now set to be reviewed by the Senate.
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.
He said: “Wrong choices will leave us less competitive and, hence; we will fail to gain from the Agoa. Our advice is that we should develop an Agoa National Strategy.”
Changanya, who is National Planning Commission director general, said: “We have to ensure that we decide which niche within the window Malawi will be known for.”
One of the beneficiary companies, Illovo Sugar (Malawi) plc board chairperson Jimmy Lipunga said if Agoa continues to provide duty-free access to the US market without other administrative burdens, it will be “a most welcome development”.
He said: “Of course the devil is in the details. I would hope that the nationals from the beneficiary countries will not be subjected to recently announced visa restrictions as this would constitute a policy misalignment in view of the Agoa extension.”
Agoa was last renewed in 2015 and even with the introduction of the bipartisan measure, Agoa’s future was still uncertain due to major changes in US trade policy concerning Africa and other regions.
Since Agoa’s inception in 2000, Malawi has exported goods worth over $1.55 billion (about K2.7 trillion) to the US market duty-free.
Before the expiry of the trade pact in September 2025, Malawi exports to the US were duty-free.
