Impending Expiration of US-Africa Trade Deal Puts Thousands of Jobs in Jeopardy

Fri Oct 03 2025 02:49:21 GMT+0300 (Eastern European Summer Time)

As the African Growth and Opportunity Act approaches expiration, workers in African garment factories fear for their jobs and livelihoods. The potential loss of this key trade agreement raises concerns about economic stability across the continent.

Tension mounts in Nairobi’s Shona EPZ garment factory as the African Growth and Opportunity Act, a trade agreement that grants duty-free access to the US market, is set to expire. With over 66,000 jobs at stake, the future of hundreds of factories hangs in the balance. Workers like Joan Wambui express deep concerns about the potential loss of income and stability that the expiration would bring. While some US officials support a one-year extension, negotiations remain uncertain, highlighting a broader need for strategic changes in trade relations between Africa and the US.

Impending Expiration of US-Africa Trade Deal Puts Thousands of Jobs in Jeopardy

At Shona EPZ, a garment factory in Kenya's capital, Nairobi, the tension is inescapable.

The industrious thrum of the heavy-duty sewing machines, combined with the workers' chatter, normally fills the plant with a reassuring rhythm. However, today every sound is tinged with uncertainty due to the potential end of a key piece of US trade law.

The African Growth and Opportunity Act (Agoa), which has allowed certain African goods to enter the US market duty-free for 25 years, is set to expire on Tuesday.

Though the policy has facilitated economic growth in countries like Kenya and Lesotho, it clashes with the current US administration's tariff policies. Envoys from various African nations are in the US negotiating an extension, while a White House official indicated support for a one-year extension, although no official announcement has been made.

Agoa aims to help industrialize African economies, create jobs, and alleviate poverty, standing as a significant factor in US-Africa economic relations.

The expiration of this deal could threaten the livelihoods of many, including Joan Wambui, a 29-year-old worker at Shona EPZ. Wambui's salary supports her four-year-old daughter and her two sisters in college.

“If Agoa expires, where shall we go?” she wonders with anxiety, stressing that the loss of a job equates to the end of her family's stability.

Kenya's apparel industry has flourished under Agoa, with exports reaching $470 million in 2024 alone and over 66,000 jobs tied to this sector. Many workers, particularly women, depend on this industry, which not only provides income but also contributes to reforming lives after past struggles.

However, uncertainty over Agoa has already impacted production at Shona EPZ. Factory output has dropped to about one-third of normal levels as buyers withhold long-term orders out of fear regarding future tariffs.

"If the extension isn't granted, we may have to send people home and possibly shut down," explains factory director Isaac Maluki, whose firm has invested significantly in its operations over the past years.

The implications extend beyond Kenya, with over 30 African countries exporting 6,000 products to the US under Agoa. The program has been vital for job creation and industry growth across the continent.

Trade policy experts indicate that African nations need to redefine their approach to US negotiations, balancing their needs with what they can offer in return for continued market access.

While some are calling for a short-term extension of Agoa, others, including Kenya's Trade Minister, are pushing forward with plans for bilateral deals to create more opportunities. Yet, the urgency for domestic job security weighs heavily on workers like Wambui, who plead for more support to help them meet their potential amidst economic uncertainty.