US-Africa Trade Deal: Thousands of Jobs at Risk as Agoa Faces Uncertain Future

In Nairobi, Kenya, the atmosphere at the Shona EPZ garment factory is thick with palpable tension. The usual industrious hum of sewing machines and lively chatter among workers is now tinged with uncertainty as the future of a crucial US trade deal, the African Growth and Opportunity Act (Agoa), remains undecided. This landmark agreement, which has granted many African nations duty-free access to the US market for 25 years, is set to expire soon. Its potential lapse casts a shadow over thousands of jobs, including those of factory director Isaac Maluki and workers like Joan Wambui, a 29-year-old mother of one.

Agoa, designed to foster industrial growth, create employment, and alleviate poverty across Africa, has been a cornerstone of US-Africa economic relations. It was built on the principle of shifting from aid to trade. For countries like Kenya and Lesotho, the benefits have been substantial. In 2024 alone, Kenya exported $470 million worth of clothing to the US, directly supporting over 66,000 jobs, predominantly held by women. Factories like Shona EPZ have become vital employment hubs, offering stability and hope, particularly for young people struggling to find work in a challenging economy. Many employees at Shona EPZ were previously unemployed or even faced addiction, finding rehabilitation and purpose through the factory’s commitment to training.

However, the uncertainty surrounding Agoa’s renewal has already impacted the factory’s operations. Output has significantly decreased, with buyers hesitant to place long-term orders. Adding to the pressure, recent US tariffs have further strained the apparel sector. Factory director Isaac Maluki expressed his deep concern, stating, “If the extension isn’t granted, we may have to send people home and possibly shut down.” He highlighted the significant $10 million investment made in the firm over the past seven years, which could be lost if Agoa is not renewed.

The implications of Agoa’s expiration extend far beyond Kenya. Over 30 African nations currently utilize the act to export more than 6,000 products to the US. Trade policy experts, like Teniola Tayo, emphasize the need for African countries to strategically negotiate what they offer in exchange for market access. While African leaders are actively engaging with Washington and exploring new markets, including leveraging the African free-trade area, these processes take time. For workers like Joan Wambui, the immediate urgency of providing for their families remains paramount. She voiced a simple plea: for governments to create more opportunities for young people to showcase their potential.