Donald Trump’s victory in the US election is causing uncertainty for trade from Africa
All those involved in trade between Africa and the US are waiting with great uncertainty to see how the Trump administration will deal with the continent in future.
Of major concern is whether the African Growth and Opportunities Act (AGOA), which is due to be renewed next year until 2042, will be affected.
One leading bank in Africa, Afreximbank, has already indicated that it is starting an intense lobbying process to ensure that the Trump administration ”listens to what Africans want: the renewal of the 24-year-old cornerstone of US economic policy on the continent”.
Most observers feel that it is perhaps time to keep a low profile, given the transition period between now and end January 2025.
For the renewal of AGOA, the transfer of power in the US is not coming at a good time.
It was hoped that the extension, which has been under discussion for some years, would have been concluded under the Biden administration.
For trade between Africa and the US and the support of exports from African countries, it is of utmost importance for the matter be concluded as soon as possible.
The extension of AGOA is extremely important for the South African fresh produce industry.
Citrus growers in the Cape region have built a very successful summer citrus business with receivers in the US over the past two decades, and the benefits of AGOA is central to this.
Other South African fresh produce sectors have also indicated that they would increase exports to the US under the Act, hoping that they can restore trade to what it was before the country introduced sanction on the previous South African regime in 1986.
While most of the messages between Africa and the new US President have been of a congratulatory nature, it is certain that Trump will be in Africa in 2025.
South Africa is hosting the G-20 Summit and it is expected that he will not want to be absent at such an important international event.
Whether there will be time for AGOA dealings before then remains to be seen.
