The country’s export sector has received a major boost with the signing into law of the renewed Africa Growth and Opportunity Act (AGOA) by President Donald Trump of the United States (US) of America. 

The move secures vital non-reciprocal duty and quota-free access to the American market for the nation’s products.

The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, in an interview with the Daily Graphic, hailed the move as a critical win for Ghana, as it would preserve thousands of jobs and safeguard the emerging textiles and garment industry.

AGOA, first signed in 2000, had expired in September last year, creating significant uncertainty for African exporters as it provided eligible sub-Saharan African countries, including Ghana, with duty-free access to the US market for over 6,500 products, without the US necessarily asking those countries to reciprocate the trade gesture as required under the World Trade Organisation (WTO) Rules.

Campaign

Mrs Ofosu-Adjare detailed a concerted diplomatic campaign led by Ghana, in collaboration with other West African nations, to ensure its extension.

“Before it would expire, it became difficult for the export community,” the Trade Minister told the Daily Graphic.

“President John Dramani Mahama, through the Trade Ministry, held a stakeholder meeting to assure exporters that government will take all steps to ensure that trade between Ghana and the United States is not destabilised,” she said.

According to the Trade Minister, the assurance by the President triggered a series of high-level engagements.

“We had a series of meetings with the US Trade Office.

We engaged the US Embassy in Ghana, led two delegations to the US Trade Representative in Washington, and I also met them in Angola,” she recounted.

The effort was regional, with the entire Economic Community of West African States (ECOWAS) presenting a joint communiqué to the US government.

Mrs Ofosu-Adjare said President John Dramani Mahama also added his voice through diplomatic channels.

“All put together, we also realised that extending it was important for America because it’s a win-win,” the Trade Minister stated, applauding the non-partisan consensus in the US Congress that led to the renewal.

Lifeline for jobs

Mrs Ofosu-Adjare emphasised the direct impact of the extension on Ghanaian livelihoods.

“This is very important for us as Ghanaians because it has saved thousands of jobs.

There are a lot of people who produce specifically for the American market,” she explained. 

The Trade, Agribusiness and Industry Minister highlighted the particular threat to Ghana’s promising textiles and garment sector, which relied heavily on the US market.

“Our new emerging textiles and garment market was also going to be hit because the bulk of our exports go to America,” she said.

With ambitious plans to scale up the industry, Mrs Ofosu-Adjare stated that the renewal was timely.

“In 2026, we are helping the private sector to set up three big garment factories.

We hope that it will be able to employ 27,000 people,” she said, adding that “all the companies are going to take advantage of the opportunities under AGOA.” 

Maximise benefits

The Trade Minister outlined a structured approach to capitalise on AGOA, with the Accelerated Export Development Advisory Board, chaired by President Mahama himself, poised to expedite export-related issues.

Additionally, Mrs Ofosu-Adjare said a ministerial-level committee ensured that challenges were swiftly escalated to the Presidency.

“We must be intentional about taking this opportunity,” she said, adding that “we think that we have positioned ourselves by creating also the enabling environment for other private businesses to take advantage of the export market, especially AGOA.”

While textiles and garments are major beneficiaries, Mrs Ofosu-Adjare clarified that the AGOA covered a broad range of value-added agro-products.

“Everything agro-processing, anything apart from cocoa. You can think of anything agriculture that you add value to,” the Trade Minister explained.

She specifically cited the tuna industry as a key existing beneficiary.

On the financial reprieve, Mrs Ofosu-Adjare explained that without AGOA, Ghanaian exports would have faced significant tariffs.

“It will be 15 per cent of all the exports to the US, apart from the three exemptions they gave us relative to agro-produce such as cocoa and tuna,” she said.

Mrs Ofosu-Adjare pointed out that the renewal, set to last until the next review on December 31 this year, provided a stable platform for Ghana to expand its export footprint in the world’s largest economy and accelerate industrialisation efforts.