As the dust settles from the recent U.S foreign trade policy shifts, including steep tariffs and AGOA suspensions, African businesses must rethink their approach to international trade. While the African Growth and Opportunity Act (AGOA) has been crucial in granting preferential access to the U.S markets, its future remains uncertain. The African Continental Free Trade Area (AfCFTA) presents an opportunity for businesses to quickly adapt to this changing environment and seize opportunities for growth.  

AfCFTA: The Intra-African Trade Lifeline 

AfCFTA, now operational, aims to connect 55 African countries into a single market of about 1.3 billion people with a combined GDP of approximately US$ 3.4 trillion. This presents a golden opportunity for manufacturers, exporters, and supply chain professionals to pivot toward regional trade. 

Benefits include: 

• Tariff reductions and eventual elimination across member states 

• Streamlined customs procedures and cross-border logistics 

• Encouragement of local sourcing, manufacturing, and value addition 

For businesses long reliant on U.S. markets, AfCFTA offers a strategic buffer and a chance to tap into growing consumer demand within the continent. 

Diversifying Trade Partnerships Beyond the U.S. 

While AfCFTA is a major step forward, it’s not the only route. African exporters should also explore other international markets: 

• European Union (EU): Under Economic Partnership Agreements (EPAs), many African countries enjoy preferential treatment. 

• BRICS Nations: Brazil, Russia, India, China, and South Africa offer alternative markets and partnerships. 

• Middle East and Asia: These regions are increasingly sourcing agricultural and manufactured goods from Africa. 

For instance: Kenya recently signed a comprehensive economic partnership agreement with the UAE, opening a new gateway for investment and market access​ (Africa Legal Network, 2025)​.   

Repositioning Supply Chains for Resilience 

To thrive in this evolving landscape, African businesses must build more resilient supply chains: 

• Localize and regionalize sourcing to reduce exposure to geopolitical risks 

• Invest in digital platforms to manage cross-border logistics and compliance 

• Adopt scenario planning to prepare for market volatility and trade policy changes 

Supply chain professionals have a vital role to play in building these capabilities and guiding their organizations through strategic transitions. 

Policy Alignment and Institutional Support 

Governments must act decisively to support exporters and attract foreign investment: 

• Implement AfCFTA protocols effectively at borders 

• Invest in trade infrastructure: ports, roads, customs systems 

• Provide incentives for local manufacturers and exporters 

Public-private partnerships will be key to unlocking AfCFTA’s full potential. 

Conclusion: Seizing the Moment 

The uncertainty surrounding AGOA underscores the need for African countries to reduce over-dependence on single markets. AfCFTA is not just a fallback; it’s a catalyst for a more inclusive, self-reliant African trade ecosystem. 

As an experienced supply chain professional, I believe the future belongs to businesses that diversify smartly, invest in resilience, and embrace regional integration. The shift from AGOA to AfCFTA is not just necessary, it’s an opportunity and now is the time to act. 

​​References 

​​Africa Legal Network. (2025, February 3). Kenya-United Arab Emirates Comprehensive Economic Partnership Agreement. From ALN: https://aln.africa/insight/kenya-united-arab-emirates-comprehensive-economic-partnership-agreement/ 

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