Trade experts have expressed mixed reactions to the expiry of 25-year-old African Growth and Opportunity Act (Agoa), with some saying it is a blow to the viability of light manufacturing while others argue it is an opportunity to refocus.
Agoa, a US Government trade window which opened in 2000 and expired on September 30 2025, deepened trade ties with Africa to develop their economies by providing duty-free access to the US market.
In an interview on Sunday, trade economist Paul Kwengwere said although Malawi’s total export volumes under Agoa were modest, the trade pact provided some strategic path for industrialisation and diversification, as such, its impact is inevitable.
He said: “In essence, the little that we are getting into the US market would immediately face US tariffs, making our products less competitive.
“This does not only cover textile and apparel which we really underutilised, but would also include the growing export market of processed products such as macadamia nuts, dried fruits, or specialty coffees which will also lose their tariff-free status.”
Kwengwere, who is also former Malawi Investment and Trade Centre CEO, said these high-value niche products are precisely what Malawi needs to promote diversification and the tariff cost could make them prohibitively expensive for US buyers.
“Malawi has access to regional markets such as Southern African Development Community [Sadc] and the Common Market for Eastern and Southern Africa [Comesa] and the burgeoning African Continental Free Trade Area [AfCFTA].
In a separate interview Comesa Business Council president James Chimwaza said although the development will affect US exporters, it should strengthen cooperation of member States to improve regional integration and boost trade within the region.
“Agoa expiration will affect some businesses that were utilising the opportunity, especially in textile and agriculture. But I must also say that this gives an opportunity for regional integration and also the AfCFTA.
“Currently, as a continent we are still importing more from other continents which means there is an opportunity to export within Comesa, Sadic and more importantly to utilise the AfCFTA,” he said.
Meanwhile, Ministry of Trade and Industry spokesperson Patrick Botha said government will capitalise on continental integration while pursuing avenues to negotiate more favourable trade terms that can preserve and expand bilateral trade relations to ensure that Malawi is less vulnerable to the policy shifts of any one market.
“The ministry acknowledges the important role that Agoa has played in shaping trade relations with the US and generation of export proceeds through its duty-free access for a wide range of exports from Malawi,” he said.
Botha, however, said Malawi Government’s strategy is to leverage on regional and continental integration, particularly through the AfCFTA, a market of 1.2 billion people with a combined gross domestic product of $3 trillion, which offers an expanded and more predictable market.
Agoa was last renewed in 2015 and even with the introduction of the bipartisan measure, Agoa’s future is still uncertain due to major changes in US trade policy concerning Africa and other regions.
Following the trade policy shift, US announced a 15 percent tariff for Malawi.
Under the 17 percent proposed tariff, the United Nations data showed that Malawi could be remitting $7 million (about K12.3 billion) to the US in potential custom duties annually
Since Agoa’s inception in 2000, Malawi has exported goods worth over $1.55 billion (about K2.7 trillion) to the US market
