Lifeline for over 20,000 jobs as Trump endorses 1-year AGOA extension

By Kwanele Dhladhla

United States President Donald Trump’s administration has endorsed a one-year extension of the African Growth and Opportunity Act (AGOA), offering a critical reprieve for sub-Saharan African economies, including Eswatini, where the trade pact supports over 20,000 jobs in the textiles and apparel sector.

Reuters on Wednesday reported that a White House official confirmed that the law, which was due to expire on Tuesday, would now remain in effect for an additional year.

First passed in 2000, AGOA provides duty-free access to the U.S. market for thousands of products from eligible African countries.

Minister of Commerce, Industry and Trade Manqoba Khumalo strongly emphasised that Eswatini would continue positioning itself to take advantage of new trade arrangements.

“As we approach the conclusion of AGOA, it is important to reflect on both the potential impacts and the unique opportunities for Eswatini. AGOA has played a significant role in supporting thousands of jobs and livelihoods, particularly within textiles, which accounted for the majority of our US$70 million (E1.2 billion) AGOA exports in 2024,” Khumalo said.

The minister acknowledged that a permanent non-renewal of AGOA would mean the loss of duty-free and quota-free access.

However, he stressed that Eswatini has negotiated a highly favorable reciprocal external tariff of just 10 per cent on exports to the United States, the lowest in the region.

“This makes Eswatini the most attractive location for U.S.-bound exports compared to our neighbors,” he explained.

“We anticipate not a net loss, but a net gain in investments and jobs as businesses seeking competitive access to the U.S. market consider relocating or expanding here.”

According to the ministry, contingency measures were already in place to ensure factory shells and industrial infrastructure remain operational in the event of a shift away from AGOA.

He pointed out that the government was also pushing for diversification in agro-processing, ICT, and renewable energy to cushion the economy from overreliance on textiles.

An economist noted that the endorsement from Washington, as reported by Reuters, brought a sigh of relief to thousands of factory workers, particularly women, whose livelihoods depend on the textiles sector.

He said it also reassures investors in the apparel value chain who had expressed concern over market uncertainties.

Eswatini sugar cushioned by WTO deal, secures new markets in U.S

Eswatini’s sugar industry is set to remain resilient despite looming changes in U.S. trade arrangements, with its exports guaranteed under World Trade Organisation (WTO) agreements.

Eswatini Sugar Chief Executive Officer Banele Nyamane welcomed President Trump’s endorsement of the one-year AGOA extension as good news but noted that the country’s sugar exports fall under WTO quotas rather than AGOA.

“The most affected products from Eswatini would have been the value-added products from sugar. Our raw sugar exports remain guaranteed, and we are further strengthening our position through new international markets,” Nyamane explained.

Nyamane recently disclosed that from September 2025, Eswatini would export 16,500 tonnes of sugar annually to the U.S. under a recently concluded deal. Nyamane confirmed that despite the imposition of 10 per cent tariffs, the U.S. market remains attractive.

“We will still get better value from the United States compared to other markets,” he said.

Eswatini Sugar has also scored a breakthrough in Angola, a market long dominated by Brazilian suppliers. Under SADC agreements, Angola has agreed to tariff-free imports from member states. “Angola was a tough market, but safeguards now allow us entry.

We already supply Namibia, so trucks can move seamlessly from Namibia into Angola,” Nyamane said when delivering financial results for the 2024/2025 financial year.

Financially, the company reported revenues rising slightly from E7.4 billion to E7.7 billion, despite falling global sugar prices.

After deducting costs, net proceeds of E7.3 billion will be distributed across the industry, with 68.1% going to cane growers and 31.9% to millers.

Nyamane described the results as a big achievement, adding that the rebrand from the Eswatini Sugar Association to Eswatini Sugar signals ambition to assert a stronger identity in regional and global markets.

“This position us to grow our footprint across Africa while securing high-value markets abroad,” he said.