Eswatini has retained its eligibility for the U.S. African Growth and Opportunity Act (AGOA), allowing 39 companies, including some of the country’s major brands, to continue benefiting from duty-free access to U.S. markets. The announcement was confirmed in late December by U.S. Trade Representative spokesman Sam Michel following an annual eligibility review.
AGOA, which promotes trade and economic ties between the United States and Africa, has been instrumental in Eswatini’s export industry. In 2022, the country exported goods worth $23.5 million under the program. Eswatini joins over 30 African nations, including South Africa, Namibia, and Mozambique, that benefit from the initiative.
Swazi businesswoman Sonia Paiva highlighted the importance of such trade agreements in fostering economic growth. She emphasized the adverse effects of exclusion, citing Eswatini’s high unemployment rate, which disproportionately affects youth. “We encourage the government to establish effective policies to safeguard export businesses, ensuring compliance and implementation of trade agreements,” she stated.
Eswatini’s participation in AGOA has faced challenges in the past. The country was suspended in 2015 for failing to meet democratization and human rights benchmarks, leading to significant job losses. However, its reinstatement in 2017 revitalized economic prospects and restored access to U.S. markets.
Criticism Over AGOA Renewal
The renewal of AGOA benefits has drawn criticism from opposition leaders and analysts. Wandile Dludlu, deputy president of the People’s United Democratic Movement (PUDEMO), expressed disappointment, accusing the Eswatini government of suppressing political dissent and obstructing investigations into human rights abuses.
“We have political activists in jail and a government that refuses international investigations into the assassination of human rights activist Thulani Maseko,” Dludlu said. He called the U.S. decision inconsistent, given the current political climate in Eswatini.
Political analyst Sibusiso Nhlabatsi echoed these concerns, criticizing the U.S. for overlooking Eswatini’s unmet commitments, including promises of a national dialogue to address political unrest. “The renewal of AGOA benefits is beneficial for businesses, but the political situation remains unstable. The lack of a promised dialogue undermines progress,” Nhlabatsi argued.
Government Response
Eswatini government spokesperson Alpheous Nxumalo reaffirmed the country’s commitment to meeting AGOA requirements and strengthening ties with the U.S. Despite criticism, the renewal of AGOA benefits provides a lifeline to Eswatini’s economy and a platform for continued engagement with international partners.
As Eswatini navigates its political and economic challenges, the renewal of AGOA benefits underscores the balance between fostering trade relationships and addressing governance issues.