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AGOA's Strategic Impact on US Economic Leadership: Assessing Trade Relations and Regional Stability in Sub-Saharan Africa
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AGOA's Strategic Impact on US Economic Leadership: Assessing Trade Relations and Regional Stability in Sub-Saharan Africa
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Journal Article
AGOA's Strategic Impact on US Economic Leadership: Assessing Trade Relations and Regional Stability in Sub-Saharan Africa
2025
Overview
The paper examines the impact of the African Growth and Opportunity Act (AGOA) on US-African trade relations, economic development, and regional stability in sub- Saharan Africa between 2000 and 2023. Through a comprehensive analysis of trade data, economic indicators, and diplomatic records from five case study nations- South Africa, Nigeria, Kenya, Ethiopia, and Lesotho-the study reveals significant but uneven progress in AGOA utilization. The findings demonstrate an average impact achievement of 50.5% across key metrics, with projected growth potential reaching 75.0% by 2030. While AGOA has successfully increased US textile and apparel exports, fostered export diversification, and stimulated economic growth through job creation and foreign direct investment, technical capacity gaps affect 60% of participating countries and infrastructure adequacy remains at 50% of required capacity. The study highlights the need for strategic policy adjustments, including reviewing rules of origin and expanding product coverage, alongside complementary initiatives in infrastructure development and skills training. The study concludes that realizing AGOA's full potential requires targeted interventions, sustained commitment to policy implementation, and enhanced cooperation between the US and African nations.
