AGOA, which grants duty-free access to more than 1,800 product lines from eligible sub-Saharan African countries, expired in September 2025 after a ten-year extension from 2015. While the programme has underpinned billions of dollars in trade, Botswana’s participation, primarily through apparel exports, steadily declined. Data from the U.S. International Trade Commission shows that Botswana’s AGOA utilisation fell from full usage in 2014 to zero by 2021.
The bill’s passage in the House now sends it to the Senate. Approval would see it presented to the President for assent into law. Yet uncertainty remains over how AGOA will interact with broader tariffs introduced under the Trump administration, including the blanket 15 percent tariff imposed on Botswana.
Banusi Mbaakanyi, President of the Botswana Textiles and Clothing Association (BTCA), acknowledged that the proposed three-year renewal to 2028 is too short to unlock meaningful industrial transformation, especially given Botswana’s struggles even during AGOA’s longer lifespan.
“Botswana still failed to take full advantage of the opportunity due to structural challenges that remain unresolved,” Mbaakanyi told The Business Weekly & Review.
U.S. buyers demand strict timelines, high-quality standards, and large-volume orders — requirements that only globally competitive firms can meet. One core constraint, she said, is the absence of backward linkages in the textile value chain.
“Botswana does not manufacture its own textiles or fabric. We do not have a clothing mill, which makes our apparel products structurally uncompetitive,” she explained. Heavy reliance on imported raw materials undermines cost competitiveness and limits the industry’s ability to scale.
Design quality has also been a longstanding weakness. The absence of Computer-Aided Design (CAD) solutions has forced many local producers to rely on manual processes, limiting precision, consistency, and innovation, which undermines both export competitiveness and domestic retail penetration.
However, Mbaakanyi believes a turnaround is possible. The Japan International Cooperation Agency (JICA) plans to support the sector through the Botswana Development Corporation (BDC) by establishing an integrated warehousing model to supply fabric and accessories at scale. The model is expected to address the industry’s CAD gap and identify an anchor Cut-Make-Trim (CMT) factory to support the entire industry, including SMEs.
Under the proposed model, a seasoned CMT anchor would hold large fabric stocks and distribute materials across manufacturers. Pooling demand and holding fabric in bulk could reduce unit costs, shorten lead times, and help the industry meet AGOA buyers’ volume requirements. Japanese technical experts are also expected to assist with standards and quality control, ensuring compliance across manufacturers. The warehousing model could first stabilise supply to local retailers before expanding to the AGOA market.
Skills erosion remains another major constraint. Many experienced workers have left the sector over the years, draining technical expertise. Mbaakanyi said the Human Resource Development Council (HRDC) has committed to revamping training programmes to rebuild skillsets.
Regional collaboration could also help Botswana meet AGOA’s scale requirements. Mbaakanyi highlighted partnerships with Angola under the SADC framework, allowing pooled production and aligning AGOA utilisation with regional integration objectives.
At its peak, Botswana’s textile and clothing industry employed nearly 10,000 people, mostly women. Mbaakanyi believes AGOA, if strategically leveraged, could once again drive job creation, skills development, and economic diversification. Longer-term opportunities exist to establish a spinning plant in Botswana, stimulating local cotton production and supplying yarn to established garment manufacturers.
Across Africa, the House vote has been met with cautious optimism. Yet policy analysts warn against over-reliance on AGOA. A recent assessment by the Carnegie Endowment for International Peace noted that even if renewed, the short-term extension is only a stopgap.
“AGOA should not trigger false nostalgia for the continent,” the Washington-based think tank said. “Africa largely failed to maximize its trade preferences the first time. Countries should diversify export destinations, deepen engagement with the EU, China, and other partners, and accelerate intra-African trade under the African Continental Free Trade Area.”
“If passed, the extension offers an opportunity to adapt to the U.S.’s new trade policy, but it is not a durable solution. The continent should use this moment to recalibrate and plan for the future,” Carnegie concluded.
