At Shona EPZ, a garment factory in Nairobi, Kenya, a tense atmosphere engulfs the workers as uncertainty about their future looms. The African Growth and Opportunity Act (Agoa), a key trade agreement granting many African goods duty-free access to the US market for 25 years, is set to expire in just a few days. This policy has been a critical factor for many African economies and, as Joan Wambui, a 29-year-old worker, illustrates, it is vital for her family's future.
The healthy buzz of sewing machines that typically fills the factory has become a sound of anxiety as the expiration date approaches. Envoys from African countries have been actively seeking a last-minute extension, with some reports suggesting that the U.S. administration may consider a one-year extension but has yet to finalize an announcement.
Agoa was created to foster industrialization and boost employment across Africa, fundamentally aimed at substituting aid with trade. Countries like Kenya and Lesotho have benefitted significantly from this program, where the fate of workers is intricately tied to its future.
Joan Wambui, who supports her family largely on the wages earned from her six-month tenure at Shona EPZ, expresses her worries, stating, 'If Agoa expires, where shall we go?' The importance of her job extends beyond financial support; it has provided her family with dignity, access to education, and a better lifestyle.
As negotiations unfold, the stakes remain high, not just for individual factories but for entire economies across Africa. Kenya has seen substantial export benefits under Agoa, with the apparel industry relying heavily on it for jobs and economic growth. The potential expiration of this act could severely disrupt the livelihood of over 66,000 workers in the country alone.
Factory outputs have already been impacted this year, with Shona EPZ's production halving due to market hesitance amid rising tariffs. If an extension isn't granted, factory director Isaac Maluki warns of potential layoffs and even the need to cease operations entirely. The broader implications for over 30 countries currently exporting under Agoa are severe, with many depending on these agreements for their economic resilience.
As leaders across Africa call for extended negotiations, they also stress the necessity for new strategies in future trade agreements, aiming for a more reciprocal relationship with the U.S.
For Joan and her fellow workers at Shona EPZ, the urgency is palpable, as they ponder what the future holds. 'We need support to show our potential,' she reiterates, encapsulating the hopes of many young Africans yearning for opportunity.