Ethiopia’s Export Under AGOA Shows Dramatic Increase

Ethiopia’s exports to the United States under the African Growth and Opportunity Act (AGOA) have risen by 62 percent in just one year. If this trend continues, Ethiopia is poised to be the second or third largest exporter in East Africa under AGOA, according to the US Agency for International Development (USAID).

Under AGOA, exports from Ethiopia, Rwanda, Uganda, Madagascar, Kenya, Tanzania, Mauritius and Burundi, the eight countries which benefit from the act, rose by 17 percent during the period October 2017 to September 2018, compared to the same period in the previous year.

In total, the eight countries exported $1 billion worth of products to the United States between October 2017 and September 2018. Kenya, the largest exporter of the eight, accounted for $454 million while Ethiopia’s exports amounted to $137 million. 84.4 percent of AGOA exports are made of apparel.

To date, USAID Hub trade and investment support have contributed to $4.07 billion in AGOA exports from the region, with $491.5 million from USAID Hub-supported firms.

AGOA is a United States Trade Act, enacted on 18 May 2000, which significantly enhances market access to the US for qualifying Sub-Saharan African countries. While it was initially intended for a period of eight years, subsequent renewals have ensured its existence until at least the year 2025.