Exploit US export window

The extension of a special American government initiative that has made a solid contribution to the growth of Kenya’s manufacturing sector is good news.

The African Growth and Opportunity Act (Agoa) has been particularly supportive of the textiles and apparel sector.

Thanks to Agoa, the Export Processing Zones Authority (EPZA) has overseen the development of the Export Processing Zones (EPZ) programme, which encourages industrial investment based purely on exports within specific zones.

This programme, which allows duty-free imports from designated Sub-Saharan African countries, has enabled Kenya’s monthly exports amounting to a whopping Sh4.5 billion.

And it could just get better as the United States Congress plans to extend the scheme and even revamp it. The Agoa Renewal and Improvement Act, 2024 will also seek to integrate it with the African Continental Free Trade Agreement (AfCTA) to support the development of intra-African supply chains.

First enacted in 2000, Agoa is set to expire next year but US President Joe Biden is keen to renew it, handing a valuable incentive to manufacturers to boost production and, of course, exports. It will be extended by 16 years to 2041 and the number of participating countries, including Kenya, increased to 54 from 32. Increased exports to the US should spur development. The new Agoa Bill will provide trade capacity building.

This programme has been at the core of US economic policy and commercial engagements with Africa. The legislation significantly enhances access to the US market.

Agoa has benefited Kenya's textile and apparel industry, in particular, boosting exports and economic development. Further reopening of this vital window into the US market for Kenyan industries is one that should be exploited and treasured.

Agricultural products, including groundnuts and leather, need to be boosted as manufacturing continues to grow. Agoa is a sure means to help the country grow its economy.