Prof HAKIZIMANA Maurice
The United States has announced its intention to suspend Rwanda and South Africa from the AGOA programme (African Growth and Opportunity Act), a scheme that allows eligible African countries to export their goods to the American market duty-free.
The announcement was made on November 2, 2026, by Mr. Jamieson Greer, the United States Trade Representative, as part of the trade policy pursued by President Donald Trump’s administration.
What does this decision mean for Rwanda? That is what I invite you to discover.
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The announcement was made by Mr. Jamieson Greer, the United States Trade Representative.
(1) What Is AGOA?
AGOA stands for African Growth and Opportunity Act.It is a U.S. law establishing a preferential trade programme, enacted in 2000, which grants certain sub-Saharan African countries the right to export their products to the American market without paying customs duties (duty-free), provided they meet the eligibility requirements established under the programme.
(2) What Benefits Has AGOA Brought to Rwanda?
Established in 2000, the AGOA programme has represented an important economic and international trade opportunity for Rwanda.
1. Exporting Goods to the United States Without Paying Customs Duties (DUTY-FREE)
AGOA has enabled Rwanda to export a wide range of products to the American market (more than 1,800 product categories), including agricultural products such as coffee and tea, as well as handicrafts and decorative items, without American importers having to pay the customs duties normally applicable to these goods upon entering the United States.
Also read: The Rwandan Franc Has Lost Significant Value This Year: What Are the Causes of This Depreciation?
2. Supporting Manufacturers and Investors
The programme has enabled Rwandan entrepreneurs, as well as owners of large and small manufacturing and processing businesses, to gain access to the vast American market.This trade opening has helped strengthen their ability to compete internationally and expand their business activities.
3. AGOA Has Contributed to Creating Numerous Jobs for Rwandans
The development of trade between Rwanda and the United States has helped create employment opportunities for many Rwandans.
The main sectors concerned include agriculture, food processing, construction, manufacturing, textile production and handicrafts.
Manufacturers of traditional Rwandan baskets and other decorative items, which are particularly popular on the American market, have also benefited from this trade openness.
The increase in demand in this market has enabled many workers and small-scale producers to earn a living and, in some cases, secure relatively stable employment.
(3) What Economic Losses Could Rwanda Suffer Following Its Permanent Exclusion from AGOA?
In 2018, the United States had already suspended Rwanda’s AGOA trade benefits for clothing and footwear exports to the American market.
This decision followed an initiative by Rwanda and some members of the East African Community (EAC), which had decided to increase customs duties on second-hand clothing and footwear imported from the United States.
The stated objective was to protect and promote local textile industries, particularly through Rwanda’s Made in Rwanda policy.
In international trade, this situation also raised the issue of trade reciprocity, namely the principle that trading partners should benefit from fair and mutually advantageous trading conditions.
As a result of that decision, Rwanda lost its preferential AGOA benefits for clothing and footwear exports to the United States.
However, the consequences remained relatively limited, since the country continued to export other categories of products covered by the programme.
The United States, under President Donald Trump, has now announced its intention to permanently remove Rwanda from the AGOA programme as of January 1, 2027.
According to U.S. authorities, this decision is motivated by several factors, including concerns over human rights violations in Rwanda, its domestic policies, and actions that allegedly undermine American interests in the Great Lakes region. Washington has also raised concerns relating to security and American trade interests in the region.
This means that, starting January 1, 2027, Rwandan products will no longer benefit from preferential access to the United States market under AGOA.
Rwandan goods that continue to be exported to the United States will henceforth be subject to the applicable customs duties, reducing their competitiveness and the trade advantages previously enjoyed by Rwandan exporters.
This decision could have several consequences for Rwanda’s economy, including:
- A decline in export revenues, due to the loss of preferential tariff benefits and the risk of reduced sales on the American market.
- Additional pressure on the Rwandan franc, which could lose further value against the U.S. dollar.
- A reduction in foreign currency inflows, particularly U.S. dollars, into the Rwandan economy.
- Job losses, affecting many Rwandans who depend directly or indirectly on exports to the American market.
Rwandan manufacturing companies producing goods for export to the United States could therefore lose a significant share of their commercial outlets.
This would represent a potential loss of revenue for the country, but also a serious setback for business owners and small-scale producers who partly depend on manufacturing and selling handicrafts destined for the American market.
This latest decision also comes shortly after sanctions imposed by the United States on Rwanda’s Ministry of Defence (MINADEF) and the Rwandan military bank Zigama CSS, accused of supporting the M23, now known as the FRN.
It also follows U.S. sanctions targeting the Rwanda Defence Force (RDF) and several of its senior officers, including Stanislas Gashugi, Ruki Karusisi, General Mubarakh Muganga and Vincent Nyakarundi.
About the Author
Mwalimu Hakizimana Maurice is a teacher, interpreter-translator and writer based in Paris, France. He is the founder and owner of the information and educational platform Eurêka Academy Studio, also available on YouTube under the name Eurêka Studio TV.
Professor Hakizimana Maurice is the author of the book “UTABA AMATEKA NTABONA ITAKA” (Editions Scribes).
Don’t miss any of the latest publications and updates from Eurêka Academy Studio, available here on our website and on YouTube through Eurêka Studio TV.
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