• The U.S. has extended AGOA to December 31, 2026, but Zimbabwe remains excluded due to political, governance, and human rights concerns codified under ZIDERA
• Zimbabwe’s exclusion has limited foreign direct investment, constrained SME growth, and reduced competitiveness compared to neighbouring AGOA-eligible SADC countries
• Regional trade frameworks like COMESA and AfCFTA provide partial mitigation, but preferential access to the U.S. market remains critical for industrial and export growth

 Harare - The United States has extended the African Growth and Opportunity Act (AGOA) trade preference programme to 31 December  2026, offering temporary certainty to African exporters eligible for duty-free access to the U.S. market.

The extension provides relief for several sub-Saharan economies however, Zimbabwe remains outside the benefits of AGOA, continuing a status it has held since the programme’s inception in 2000.

Zimbabwe’s exclusion from AGOA was largely predetermined by historical political events. The programme coincided with the controversial land reform programme, which began around 2000 and saw the seizure of white-owned commercial farms.

The initiative was widely condemned in the West and created an early divergence between Zimbabwe and U.S. trade policy priorities. This divergence was codified in the Zimbabwe Democracy and Economic Recovery Act (ZIDERA) of 2001, which formally restricted access to U.S. preferential trade benefits and underlined the political conditions tied to economic engagement.

Since 2000, with only a brief interruption during the Government of National Unity (2008–2013), Zimbabwe has not demonstrated the political stability or governance reforms necessary to facilitate the removal of ZIDERA and pave the way for AGOA eligibility.

Being the only country in the Southern African Development Community (SADC) excluded from AGOA has imposed a significant competitiveness disadvantage.

The United States, as the largest global economy, is a major destination for textiles, horticulture, and manufactured goods. Zimbabwe’s exclusion has likely deterred foreign investors seeking duty-free access to U.S. markets, redirecting investment toward neighbouring AGOA-eligible countries such as Kenya, South Africa, and Botswana.

Foreign direct investment (FDI) is often contingent not only on domestic business conditions but also on the ability to access major export markets.

Zimbabwe’s exclusion from AGOA has meant that billions in potential investment dollars may have bypassed the country over the last two decades, limiting industrial development, job creation, and skills transfer that could have strengthened local industries.

The small and medium enterprise (SME) sector, now a critical pillar of Zimbabwe’s economy, has been particularly disadvantaged. AGOA’s duty-free provisions would have provided SMEs with opportunities to access the U.S. market and scale operations.

Instead, Zimbabwean SMEs face high tariffs and competitive barriers, restricting growth potential and limiting access to eCommerce platforms for international sales.

Across the continent, SMEs in AGOA countries leverage the programme to expand into U.S. markets.

Kenyan SMEs, for example, receive government support to boost export capacity, including technical assistance and trade facilitation. In Zimbabwe, many SMEs lack the resources to relocate to AGOA-eligible countries, meaning that the simplest albeit regrettable  solution is to miss these opportunities entirely.

Creative industries, artisan goods, and niche agricultural products that could have found buyers in the U.S. remain largely confined to regional markets or domestic consumption.

The AGOA participation does not automatically guarantee favourable macroeconomic outcomes. Many SADC member states have historically experienced trade deficits with the U.S. under AGOA.

Countries such as South Africa, Angola, Botswana, the DRC, Malawi, Mauritius, Namibia, and Eswatini reported negative balances between 2000 and 2014, while Mozambique, Tanzania, and Zambia enjoyed net positive outcomes.

This highlights that preferential access alone is insufficient, competitiveness, production capacity, and compliance with U.S. standards are essential for translating market access into meaningful economic gains.

For Zimbabwe to engage with AGOA in the future, a strategic, multi-ministerial approach will be required. Ministries such as Industry and Commerce would need dedicated AGOA teams to align Zimbabwe’s industrial strengths with the programme’s roughly 7,000 eligible products.

Coordination with other ministries, including Health, Agriculture, and Standards, is essential to meet U.S. sanitary and phytosanitary requirements.

Meanwhile, regional trade arrangements such as COMESA and the African Continental Free Trade Area (AfCFTA) can provide partial mitigation of AGOA exclusion, offering access to regional markets, value-chain integration, and a platform to build export competitiveness.

Though these measures cannot fully replace preferential access to the U.S., where demand for high-quality horticulture, textiles, and manufactured goods remains strong.

This  illustrates a broader truth, structural governance reforms are inseparable from trade opportunities. Without demonstrable improvements in political stability, rule of law, and economic policy, Zimbabwe risks continued exclusion from high-value international markets.

 Equity Axis News