In Nairobi, Kenya, the atmosphere at the Shona EPZ garment factory is thick with apprehension. The usual hum of sewing machines is now underscored by a palpable sense of unease.
Workers like 29-year-old Joan Wambui, who relies on her factory job to support her family, face an uncertain future. The African Growth and Opportunity Act (Agoa), a vital trade agreement that grants many African nations duty-free access to US markets, is set to expire. This deal has been instrumental in fostering industrial growth and creating employment across Africa for a quarter of a century.
Agoa was built on the principle of shifting from aid to trade, aiming to boost economies and alleviate poverty. For Kenya, the apparel industry has significantly benefited, with exports to the US reaching $470 million in 2024, supporting over 66,000 jobs, predominantly held by women.
Factories like Shona EPZ have become crucial employers, offering opportunities to young people struggling to find work. Many employees, including those with past challenges like drug addiction, have found stability and a path to reform through these jobs.
However, the lack of a clear extension for Agoa has already impacted production. Shona EPZ’s output has dropped significantly as buyers delay orders due to the uncertainty. Adding to the challenges, a 10% tariff imposed by the Trump administration earlier this year further affects Kenyan garment sales.
Factory director Isaac Maluki expressed his deep concern: “If the extension isn’t granted, we may have to send people home and possibly shut down.” The factory, which has invested $10 million over seven years, faces the risk of this investment going to waste.
The implications of Agoa’s potential lapse extend far beyond Kenya. Over 30 African countries benefit from the program, exporting a wide range of products to the US. Trade experts emphasize the need for African nations to strategically negotiate their trade relationships and explore new markets, including leveraging the African Continental Free Trade Area.
For workers like Ms. Wambui, the slow pace of diplomatic negotiations contrasts sharply with the immediate needs of their families. Her plea to governments is simple: create more opportunities for young people to realize their potential.