By Toma Imirhe
Ghana’s non-traditional exporters have welcomed the U.S. Congress’s decision to extend the African Growth and Opportunity Act (AGOA) for an additional three years, calling the move a timely reprieve after months of tariff uncertainty that had disrupted access to American markets.
The House of Representatives overwhelmingly approved the extension by 340 votes to 54 last week, sending the bill to the Senate and, ultimately, to the U.S. President for signature.
The three-year extension will maintain duty-free access to U.S. markets for eligible Ghanaian products through 2029, offering exporters critical predictability after AGOA’s lapse on September 30, 2025 had left businesses scrambling under Most Favoured Nation (MFN) tariffs of around 15%.
“This is great news,” said Samuel Okudzeto Ablakwa, Ghana’s Minister for Foreign Affairs, adding that the extension would support local garment manufacturing and job creation. “AGOA provides duty-free access to the U.S. market for eligible products. This positive development will boost local garment production and create more jobs,” he enthused upon receiving news of the extension.
Despite the positive outcome, many Ghanaian exporters said the extension was not fully expected, particularly given the stalemate over US President Donald Trump’s hardline stance on tariffs and political volatility around AGOA’s renewal in Washington. In 2025, U.S. tariff measures had undercut the duty-free margins long enjoyed under the programme, forcing exporters of textiles, agro-processors, and other non-traditional products to absorb higher costs while awaiting congressional action.
Samson Asaki Awingobit, Executive Secretary of the Importers and Exporters Association of Ghana, had earlier warned that tariff uncertainty was undermining competitiveness. “Every month that passes without AGOA renewal means lost business opportunities, lost jobs and lost foreign exchange,” he had lamented to the local media.
With the extension now secured, exporters are pivoting to strategic repositioning. The Chamber of Agribusiness Ghana has urged firms to enhance compliance standards and invest in value addition, particularly in horticulture and shea butter, to maximise the renewed preferences.
Under AGOA, Ghana’s exports to the United States have been significant but volatile. According to the U.S. Trade Representative’s 2024 report, Ghana’s AGOA-eligible exports were approximately US $340 million, including cocoa derivatives, textiles, and processed goods. Early 2025 figures signalled a 45% year-to-date decline compared to 2024.
Non-traditional exports broadly remain a cornerstone of Ghana’s trade diversification strategy, generally ranging between US $3.5 billion, and US$4.5 billion annually led by iron and steel products, cocoa paste, cashew nuts, and shea oil.
With AGOA’s restored duty-free access, garments, processed foods, and cocoa derivatives stand to benefit most in absolute value. Analysts project that reinvigorated American demand, combined with increased compliance and quality enhancement, could boost these sectors’ contribution to U.S. exports by 10–20% annually through 2029, assuming global demand stabilises and supply chain constraints ease although comprehensive industry forecasts are still pending.. The garment and textiles sector in particular could regain competitiveness against East Asian suppliers if paired with enhanced export finSance and certification support.
The extension reflects a broader U.S. policy rationale to strengthen trade ties with sub-Saharan Africa, promote economic growth through market access, and counter strategic competition from other global powers particularly China – by maintaining preferential access for African manufacturers. AGOA was originally enacted in 2000 to reduce poverty through export-led growth and deepen U.S. Africa economic relations.
U.S. lawmakers have emphasised that continued access for African exporters benefits both sides supporting job creation and diversifying supply chains while helping American businesses source competitive inputs.
For Ghanaian exporters battered by tariff uncertainty, the extension not only restores market predictability but also rekindles hopes of reclaiming lost market share provided local firms can capitalise on the window ahead.
