Ghana has welcomed a major development in its trade relations with the United States after the US House of Representatives voted overwhelmingly to extend the African Growth and Opportunity Act (AGOA) for three more years.
The extension, approved by a 340‑to‑54 vote, now moves to the Senate for final approval before being sent to the President for signature. AGOA, first enacted in 2000, allows eligible sub‑Saharan African countries preferential, duty-free access to the US market, creating opportunities for local businesses to grow exports and generate employment. The programme had lapsed at the end of September 2025 amid prolonged debate in Congress over its renewal.
Following a bilateral meeting in Accra with acting US Ambassador to Ghana Rolf Olson, Ghana’s Minister of Foreign Affairs, Samuel Okudzeto Ablakwa, described the extension as “great news” for Ghana, particularly for its garment and textile sector.
“AGOA provides duty-free access to the US market for eligible Sub‑Saharan countries and products. We expect a final endorsement by the Senate shortly. This positive development will boost local garment production and create more jobs,” Ablakwa said.
The meeting also reviewed progress in trade and economic cooperation between the two countries over 2025. Ghana welcomed the removal of a 15% tariff imposed under the Trump administration on a wide range of unprocessed and semi-processed agricultural products, including cocoa derivatives, processed fruits, and other key exports. Officials expressed satisfaction with the implementation of the tariff relief and its positive impact on Ghanaian trade flows.
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AGOA has been a lifeline for Ghanaian businesses for more than two decades, providing a source of foreign exchange and acting as a catalyst for industrialisation. The duty-free access has allowed Ghana’s cocoa products, processed fruits, apparel, and other goods to gain a competitive footing in the United States, helping to expand the country’s export base and support local employment.
The lapse of AGOA in September 2025 had created uncertainty for exporters, as businesses faced the possibility of higher tariffs and reduced access to the US market. Analysts warned that a prolonged absence of the programme could slow industrial growth and disrupt trade flows in key sectors.
The three-year extension is expected to provide much-needed certainty for Ghanaian exporters and help stabilise trade, while giving businesses time to plan investments and expand production. Experts said the move could encourage further diversification of Ghana’s export portfolio and strengthen the country’s industrial base.
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In addition to export opportunities, AGOA also offers a platform for technology transfer and capacity-building, enabling Ghanaian firms to upgrade production methods, meet international standards, and enhance competitiveness. Governments on both sides indicated their commitment to deepening economic engagement beyond trade preferences, including through initiatives aimed at promoting investment, skills development, and industrialisation.
Ghanaian officials also noted that the extension comes at a time when the country is actively pursuing domestic reforms to enhance industrial competitiveness and boost job creation. “The renewed access to the US market will complement government efforts to stimulate industrial activity and support private-sector growth,” Ablakwa said.
The three-year AGOA extension offers a temporary reprieve but will still require vigilance. Economists said Ghana will need to continue improving production efficiency, diversify export products, and ensure consistent supply to take full advantage of the preferential trade regime.
For now, the decision is being celebrated by exporters and industry associations, who see it as a stabilising factor for Ghana-US trade, providing confidence to investors and firms relying on the US market. With Senate approval expected in the coming weeks, Ghanaian businesses are preparing to expand production, hire more workers, and increase exports, signalling optimism for the country’s industrial and trade outlook.
