NAIROBI, Kenya- Kenya has secured its position as the sixth leading exporter to the United States under the African Growth and Opportunity Act (AGOA), trailing only behind South Africa and Nigeria.
The AGOA pact, in place since 2000, has been instrumental in enhancing trade between the US and sub-Saharan African countries, and is set to conclude in September next year.
The 2024 biannual AGOA report reveals that Kenya exported goods worth $510 million (Sh67.8 billion) to the US in 2023, primarily in apparel.
This achievement positions Kenya as the second largest exporter of non-oil products under AGOA, only behind South Africa.
According to the report, South Africa leads the pack with exports worth $14 billion, followed by Nigeria at $5.7 billion, Ghana at $1.7 billion, Angola at $1.2 billion, and Côte d’Ivoire at $948 million.
Total two-way goods trade with sub-Saharan Africa reached $47.5 billion in 2023, marking a 6.2 percent increase from $44.7 billion in 2021.
U.S. goods exports were up by 10.4 percent, totaling $18.2 billion, driven by increased exports of aircraft and petroleum products. Conversely, U.S. goods imports stood at $29.3 billion, a 3.8 percent rise, mainly due to higher imports of petroleum and silverware.
Top U.S. imports from sub-Saharan Africa in 2023 included crude petroleum ($7.3 billion), precious metals ($4.7 billion), gemstones ($2.2 billion), silverware and related articles ($1.8 billion), motor vehicles ($1.7 billion), and apparel ($1.4 billion).
On the export side, the U.S. sent aircraft ($1.8 billion), petroleum products ($1.3 billion), motor vehicles ($1.2 billion), natural gas and components ($1.2 billion), and certain motor vehicle parts ($861 million) to sub-Saharan Africa.
The Future of AGOA and US-Africa Trade
Since its inception, AGOA has provided duty-free access to over 1,800 products for eligible sub-Saharan African countries, in addition to the more than 5,100 products covered under the Generalized System of Preferences (GSP) program.
Despite the expiration of legal authorization for GSP benefits on December 31, 2020, AGOA beneficiaries have continued to enjoy these tariff lines.
Currently, 32 countries benefit from AGOA. In a November 2023 statement, President Biden emphasized the importance of AGOA, calling it a “landmark, bipartisan law that has formed a bedrock for U.S. trade with sub-Saharan Africa for more than two decades.”
As the pact approaches its end, discussions on its reauthorization and future frameworks for US-Africa trade relations are gaining momentum.
