From aid to trade? The US just stumbled on its own Africa strategy

Opinion: The Expiration of AGOA and the Dismantling of USAID: A Missed Opportunity for U.S. Foreign Policy in Africa

Published in Devex by Alexanderia Haidara on November 12, 2025

The Current Landscape of U.S. Foreign Policy in Africa

As I reflect on the current state of U.S. foreign policy in Africa, the expiration of the African Growth and Opportunity Act (AGOA) stands out as a significant turning point. The Trump administration's actions, including the dismantling of USAID, have effectively shut down crucial foreign policy tools. This shift not only undermines America's commitment to Africa but also cedes ground to China's zero-tariff policies.

The U.S. government remains in gridlock due to the shutdown, and the quiet expiration of AGOA raises serious questions about the future of U.S.-Africa relations. By 2050, a quarter of the world’s population will be African. Collectively, African countries could represent a $29 trillion economic bloc. Yet, American business investors find themselves in limbo, waiting for Congress to make a decision on a potential one-year extension before the year ends.

The Importance of AGOA and USAID

For over sixty years, foreign assistance has been the cornerstone of U.S.-Africa relations. The U.S. Agency for International Development (USAID) has worked tirelessly to address economic development, humanitarian assistance, and global health issues across the continent. However, by the late 1990s, American leaders recognized the urgent need to transition from aid to trade partnerships.

In 2000, President Bill Clinton signed a trade preference program into law, granting duty-free access to the U.S. market for over 5,000 products from more than 30 eligible African countries. USAID played a crucial role in implementing this program, providing technical and policy assistance to help these countries maximize its benefits.

The Success of AGOA

Since its inception in 2002, AGOA has generated over $1.2 trillion in two-way trade between the United States and Africa. This initiative has opened doors for U.S. companies to enter African markets, diversify their supply chains, and create American jobs. Major retailers like Target, Victoria's Secret, and Walmart have sourced apparel from countries such as Kenya, Lesotho, and Madagascar through AGOA. Over the past 20 years, this program has created over 500,000 U.S. jobs and 1 million African jobs.

Does Washington Value African Partnerships?

The fall of AGOA coincides with the Trump administration’s shuttering of USAID, which previously funded crucial trade and investment programs like Prosper Africa and Power Africa. While the Millennium Challenge Corporation has survived, many of its programs have faced cuts. The message from the Trump administration is clear: dismantling the agency that facilitated trade with Africa signals a lack of respect for African countries as equal trading partners.

Despite Secretary of State Marco Rubio dismissing reports about the closing of the African Affairs Bureau as “fake news,” the political fallout has been significant. African leaders are increasingly viewing the U.S. as an unreliable partner.

The Trump administration has yet to announce a plan to help American investors recover from the business and job losses resulting from AGOA's expiration. The possibility of a one-year extension reveals a troubling lack of long-term vision for strengthening commercial ties with Africa.

The Future of U.S. Investment in Africa

With USAID dismantled, the U.S. International Development Finance Corporation is poised to take on a larger role in deepening U.S. investment in Africa. However, its limited presence on the ground and reliance on USAID staff for project implementation raises concerns. U.S. State Department diplomats, now the primary government staff tasked with carrying out foreign policies, often lack the expertise needed to assist American businesses in entering new markets.

Meanwhile in China…

As the Trump administration called back USAID diplomats by July 1, China’s President Xi Jinping announced zero-tariff policies for nearly all African countries. This development is particularly concerning given the vast business opportunities available in the African market. While the U.S. focuses on critical minerals, China dominates this supply chain, controlling nearly 60% of the market.

In 2023, the U.S. invested $7.4 billion in Africa, but only $300 million—just 4%—was allocated to critical minerals. American investors will require more government support to navigate this politically risky landscape and effectively counter Chinese investment.

Just before Trump’s second-term inauguration, Chinese Foreign Minister Wang Yi began visiting African countries to discuss critical minerals. Historically, U.S. presidents have not prioritized Africa in their foreign policy agendas, often neglecting to make official visits during their terms. Trump has yet to commit to visiting any African countries this year.

Looking Ahead: The Need for a Strategic Approach

With USAID dismantled and AGOA expired, Washington is effectively closing off the foreign policy tools that have fostered deep diplomatic and commercial ties over the past 60 years. AGOA was more than just a trade deal; it was a pathway for future U.S. government-private sector engagement in Africa.

Many U.S. businesses have already lost hope for renewal, and African exports to the U.S. have significantly declined. As potential U.S. military action looms in Nigeria over its alleged neglect of attacks on Nigerian Christians, the prospects for deepening trade ties with Africa look increasingly bleak. The closure of USAID represents a significant loss of institutional knowledge and expertise that will be challenging to replace.

In the long run, Washington must rebuild its infrastructure across the government, academia, media, think tanks, and the business community to support African countries in their transition from aid dependency to trade partnerships.

Without a robust diplomatic core and local experts at U.S. embassies, American investors will be left in the dark. If Washington aims to remain a serious player in Africa, it must transcend partisan politics and develop a credible trade policy that empowers African industries and enhances U.S. global competitiveness.

In conclusion, the current trajectory of U.S. foreign policy in Africa is concerning. The expiration of AGOA and the dismantling of USAID signal a retreat from meaningful engagement. If we are to foster a mutually beneficial relationship with African nations, we must act decisively and thoughtfully. The future of U.S.-Africa relations depends on it.