By MOSES MUGADZA
Africa-Press – Ethiopia. Chairperson of the SADC Parliamentary Forum’s Trade, Industry, Finance and Investment (TIFI) Committee, Ruth Mendes, has warned that the non-renewal of the African Growth and Opportunity Act (AGOA) by the United States represents one of the greatest shocks to African economies since the COVID-19 pandemic, potentially reversing years of trade gains and industrial growth.
Speaking in an exclusive interview, Mendes described the situation as “a major setback” that could severely disrupt exports, employment and economic stability across the Southern African region.
“This has been one of the greatest shocks to our economies since COVID-19,” she said.
She added, “With the non-renewal of AGOA, we must confront the reality of 1,800 products that will no longer enjoy duty-free access to the U.S. market. The consequences are less revenue for African countries, reduced agricultural production and reversal of the development already achieved.”
AGOA, enacted by the US Congress in 2000, had allowed eligible Sub-Saharan African countries to export over 6,000 products duty-free to the American market. In 2023 alone, Africa exported goods worth US$9.7 billion to the United States under the Act, with sectors such as textiles and agriculture thriving.
Mendes noted that the programme had been pivotal in job creation across the continent.
“At least five countries (Lesotho, Kenya, Namibia, Eswatini and Uganda) recorded 200,000 jobs as a direct result of AGOA’s enabling framework. Without it, we risk widespread job losses, industry closures, and losing the grip we thought we had on global trade,” she explained.
According to Mendes, smaller exporters of apparel and agricultural goods that include Lesotho, Madagascar, and Tanzania, will be among the worst affected. These countries face average tariff rates that could double, effectively eroding their competitive advantage in the U.S. market.
“South Africa, the largest African exporter to the U.S., stands to lose more than 35,000 jobs in the citrus fruit sector alone,” she said adding that Madagascar could face a 47% tariff on vanilla and textile exports, while Lesotho’s textile industry, which employs between 30,000 and 40,000 workers, may collapse.
She stressed that such losses would not only devastate local economies but also undermine regional industrialisation and economic stability.
Nevertheless, Mendes said the crisis offers an opportunity for Sub-Saharan Africa to strengthen its internal trade networks and resilience.
“We must view this as a moment for Sub-Saharan Africa to turn around and make a comeback. We can sustain or even increase production by exporting to other markets, in line with regional trade laws. It is time to prioritise intra-SADC trade and stand together,” she stated.
Mendes emphasised that national parliaments have a critical role in advocating for AGOA’s extension and safeguarding regional economic interests. She pointed to ongoing diplomatic engagements by South Africa’s Trade minister, Parks Tau, who has been in talks with the U.S. Trade Representative Jamieson Greer to protect trade relations.
“With South Africa assuming the G20 presidency, this platform provides a strategic opportunity to leverage global leadership in advancing regional trade interests,” she said. “Missing this moment would have serious consequences not only for South Africa but for the wider SADC region,” she said.
She added that SADC parliaments should “stand in solidarity with South Africa” and mobilise support for fair trade arrangements that protect developing economies.
“Our countries require trade concessions like AGOA rather than reciprocal bilateral agreements that often disadvantage developing economies,” Mendes stressed.
She urged governments to explore alternative trade partnerships and maintain agricultural output to cushion citizens, particularly youth, from potential job losses.
“We must not wait for disaster. Parliaments must lead in urging our governments to act swiftly, secure markets, and safeguard livelihoods across the region,” she stated.
In a separate interview, Memory Kadau, a decolonial feminist researcher, strategist, programme manager and organiser said the end of AGOA has exposed structural weaknesses in the region’s trade model and should serve as a wake-up call for SADC governments.
“The end of AGOA has negatively affected many SADC economies that depended on duty-free access to the US market,” Kadau said.
She added, “Exports from countries like South Africa, Lesotho, Eswatini, Mozambique, and Madagascar now face higher tariffs. This makes their goods less competitive and is already leading to more factory closures and job losses.”
Although the US Congress is debating a short-term AGOA renewal, Ms. Kadau believes it will offer little relief.
“Even if it returns, it won’t fix the long-term issue,” she warned adding, “SADC countries must strengthen regional trade and value addition rather than rely too much on external markets, which have always replicated extractive and exploitative hierarchies.”
Kadau said the economic fallout is hitting women disproportionately.
“Women are the hardest hit by the expiry of AGOA, especially in the textile and agro-processing sectors,” she stressed.
“The situation has deepened inequality because women in these sectors have limited savings or alternative opportunities,” Ms. Kadau noted.
Despite the shock, she argued that AGOA’s expiry could spark a shift toward regional self-reliance.
“The end of AGOA could actually push SADC countries to trade more with each other,” she said and pointed to practical value-chain opportunities.
“Cotton grown in Tanzania and Zimbabwe can be processed into fabric in Eswatini and turned into clothing in Lesotho or Madagascar, then sold across Africa under AfCFTA,” she stated.
She, however, said this requires political will and action and she urged governments to fix border delays, harmonise trade standards, and invest in transport corridors to unlock regional markets.
Kadau stressed that trade must be gender inclusive. She outlined actions to support women traders, entrepreneurs, and manufacturers. They include simplified cross-border permits for women small-scale traders; mobile-first customs systems and small-parcel trade corridors; safe trading infrastructure like storage, lighting, and child-care at border markets; collateral-free financing and certification support for women exporters; public procurement quotas for women-led businesses; protection from harassment and corruption at borders; and gender impact assessments for regional value chain projects
“The SADC Parliamentary Forum must push for harmonised gender-responsive trade policies. Otherwise, women will continue to be locked out of economic participation,” Kadau said.
She warned that agriculture (another major employer of women) will also feel the squeeze. Exports such as tobacco, citrus, sugar, wine, and canned fruit now face higher tariffs. She called on national parliaments to support farmers through subsidies and logistics and align agricultural policies with AfCFTA to protect livelihoods.
“These shocks may push people, especially young women, to migrate in search of work. Without coordinated regional action, this will deepen urban poverty and instability,” she warned.
She urged diversification of trade markets to reduce reliance on the US and other external markets; protection of women workers to provide emergency support and retraining; financing of industry reorientation to support firms to upgrade and access new markets; and collection of gender data to track real impacts and guide policy.
“The fundamental building block is political will. If everyone plays their part (governments, parliament, private sector, development banks, and civil society) this crisis can become a moment of self-reliance and regional solidarity,” she opined.
Kadau called on the SADC Parliamentary Forum to lead legislative action that enables inclusive regional trade. She said laws must remove barriers for women and small traders, embed gender targets in industrial policy, and align national laws with AfCFTA provisions.
“This is not just an economic issue. It is a socio-political moment,” she stated.
She urged the SADC region to choose between dependency and dignity.
“The future lies in building African value chains that work for African people, especially African women.”
Source: NewsDay
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