Tanzania shifts focus to regional markets as AGOA elapses

DAR ES SALAAM: TANZANIAN exporters to the United States have been advised to explore growing opportunities within Africa’s regional markets, following the expiry of the African Growth and Opportunity Act (AGOA), even as hopes remain high that the trade pact will eventually be renewed.

Permanent Secretary in the Ministry of Industry and Trade, Dr Hashil Abdallah, told the `Daily News’ recently that while African nations continue negotiating with the United States to renew AGOA, exporters should now turn their attention to regional markets such as the African Continental Free Trade Area (AfCFTA), the African Union (AU), the Common Market for Eastern and Southern Africa (COMESA), the Southern African Development Community (SADC), and the East African Community (EAC).

“Yes, we have been in talks with US legislators, and some members of Congress have shown support for tabling the Act’s renewal in the Senate,” said Dr Abdallah.

“But as the process takes its course, our focus must shift.” Like in many African countries, Tanzania’s nascent industrial sector now faces an immediate pricing shock following the expiry of AGOA on September 30th this year, which ended more than two decades of duty-free access to US markets.

The lapse of the preferential trade arrangement means Tanzania’s key export industries will now face standard US. Most-Favoured-Nation (MFN) tariffs.

The steepest increases are expected to hit apparel and textile manufacturers, a development likely to trigger factory closures and job losses.

However, analysts suggest that AGOA’s expiry could, paradoxically, serve as a powerful catalyst for export diversification and a major boost to intra-African trade, generating positive ripple effects across the continent.

“We are not standing still. We still have access to powerful regional and continental markets– AfCFTA, AU, EAC and others. These platforms are not just alternatives; they are our future,” Dr Abdallah emphasised.

With AGOA no longer in force, Tanzanian exporters are being urged to look inward to Africa’s rapidly expanding regional markets under AfCFTA.

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The continental pact offers lower tariffs, shorter supply chains, and rising demand from Africa’s growing middle class, advantages that could cushion exporters from the shock of losing duty-free access to the United States.

However, fully realising AfCFTA’s potential will require stronger regional logistics, harmonised standards and greater investment in cross-border value chains.

While the US market remains lucrative for highvalue products such as coffee, fish and spices, the lapse of AGOA and the return of MFN tariffs have eroded Tanzania’s competitiveness, particularly in labor-intensive sectors like apparel and textiles.

Analysts say AfCFTA now presents a more predictable platform for diversification and value addition, positioning Tanzania to trade more with its neighbours and build resilience against external policy shifts.

Dr Abdallah noted that businesses which previously relied heavily on AGOA must now redirect their efforts toward these dynamic and expanding trade areas.

The government had already anticipated such shifts through policies allowing producers to export up to 80 per cent of their goods, while reserving at least 20 per cent for the domestic market to support both export competitiveness and local demand.

He urged businesses not to rely on a single market, stressing: “One of the biggest lessons here is that no trade act or agreement should be seen as permanent. Traders must stay alert to opportunities wherever they arise, locally, regionally and globally.”

The Permanent Secretary added that Tanzania, together with the broader African continent, has the potential to strengthen economic selfreliance and deepen intraAfrican trade while maintaining constructive engagement with international partners.

In Washington, there is bipartisan support for a renewal of AGOA, which for the past 25 years waived US. duties on thousands of goods from sub-Saharan Africa.

However, companies that invested in factories and farms to take advantage of duty-free access warn that even a temporary lapse could harm operations built over many years, especially amid additional tariffs imposed in August.

Since the start of the Trump administration, African governments, private sector players and US stakeholders have been pushing for AGOA’s reauthorization before its expiration this year