Trade

MBABANE - Eswatini could emerge as a winner even if the United States decides against renewing the African Growth and Opportunity Act (AGOA).

This was said by Minister for Commerce, Industry and Trade, Manqoba Khumalo.

The Act, embedding in legislation a landmark trade agreement that has for 25 years given some African goods duty-free access to the US market, expired on Tuesday (September 30, 2025).

Minister Khumalo has explained that while the expiry of AGOA would mean the loss of preferential duty-free and quota-free access to the US market for all African countries, Eswatini has secured a Reciprocal External Tariff of just 10 per cent on exports to the US. This, he said, is the lowest in the region and positions the kingdom as the most competitive location for US-bound exports compared to its neighbours.

“We anticipate not a net loss, but rather a net gain in both investments and job opportunities, as businesses seeking competitive access to the US market are likely to relocate or expand their operations in Eswatini,” Khumalo said.

The Office of the United States Trade Representative, on its website, states that since its enactment in 2000, the AGOA has been at the core of US economic policy and commercial engagement with Africa.

AGOA provided eligible sub-Saharan African countries with duty-free access to the US market for over 1 800 products, in addition to the more than 5 000 products that are eligible for duty-free access under the Generalised System of Preferences programme.

The minister noted that AGOA has been central to the growth of Eswatini’s economy, particularly within the textile and apparel sector. In 2024, he stated, exports under the scheme were valued at about E1.2 billion (US$70 million), with the apparel industry accounting for the majority of that figure. These exports, according to the minister, had sustained thousands of jobs and livelihoods.

He added that the continuation of trade with the US under the new tariff regime would not only protect existing jobs, but could also create additional employment.

Khumalo further explained that his ministry had put in place contingencies to ensure that, should AGOA not be renewed, the country’s industrial infrastructure would remain in use.

The competitive tariff, he said, was expected to attract new investors and prevent factory shells from being abandoned.

In addition to securing Eswatini’s trade position with the US, Khumalo said government is actively pursuing diversification into new sectors, including agro-processing, information and communications technology (ICT) and renewable energy. He said these industries were poised to benefit from Eswatini’s existing industrial base and would broaden the range of employment opportunities.

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The minister noted that AGOA has been central to the growth of Eswatini’s economy, particularly within the textile and apparel sector. (Pic: Courtesy)

Minister Manqoba Khumalo has explained that while the expiry of AGOA would mean the loss of preferential duty-free and quota-free access to the US market for all African countries, Eswatini has secured a Reciprocal External Tariff of just 10 per cent on exports to the US. (Pic: File)