In a recent analysis, Professor Jeremy Ghez emphasizes the necessity for African nations to adapt to the U.S. 'America First' policy, which prioritizes domestic economic benefits over traditional diplomatic relationships. Ghez argues that this shift marks a move away from compromise-driven diplomacy towards a more transactional negotiation model, reminiscent of Donald Trump's approach as outlined in 'The Art of the Deal' [2df1b63e]. He advises African leaders to unify in their negotiations to identify and leverage shared interests, particularly as the expiration of the African Growth and Opportunity Act (AGOA) approaches in 2025 [2df1b63e].
The significance of AGOA cannot be overstated, as it has facilitated 152 deals worth $86 billion in exports to Africa since its inception. However, concerns are mounting regarding its renewal, especially in light of the U.S. administration's focus on domestic economic interests [2df1b63e]. Margaret Olele, a trade expert, has voiced her apprehensions about the potential for higher tariffs under the 'America First' policy, particularly for Nigeria, which heavily relies on AGOA for trade with the U.S. [2df1b63e].
In parallel, Johann Rupert, chairperson of Richemont and South Africa's wealthiest individual, has also highlighted the critical need for the extension of AGOA. He recently facilitated a dialogue between U.S. President-elect Donald Trump and South African President Cyril Ramaphosa, stressing that losing AGOA would severely impact South Africa's economy, particularly in sectors like automobiles and agriculture [fa7cba5b].
As the AGOA Renewal and Improvement Act is debated in Congress, the future of this vital trade program remains uncertain, with both South Africa and Nigeria facing significant economic implications if AGOA is not renewed [41ae0887][fa7cba5b].