Regional Economic Integration: African Growth and Opportunities Act (AGOA) in Focus

Abstract

This paper examines the African Growth and Opportunity Act (AGOA) within the context of Africa’s regional integration efforts, particularly its interaction with the African Continental Free Trade Area (AfCFTA). Regional economic integration has emerged as a strategic pathway for African countries to overcome structural limitations and strengthen participation in the global economy. The study contributes to knowledge by situating AGOA within Balassa’s stages of economic integration and presenting practical policy reforms for both Africa and the United States. The study utilizes a qualitative policy analysis of trade data, institutional reports and comparative case studies (Kenya, Lesotho, Ethiopia, and Nigeria) to assess AGOA’s impact on Africa’s trade performance, industrialization, and regional cohesion. Findings reveal that while AGOA has enhanced market access and export diversification in select countries, its overall contribution to regional integration remains limited due to factors such as, but not limited to its unilateral and temporary design, as well as its dependence on extractive sectors. The study concludes that aligning AGOA with Africa’s integration agenda requires industrial capacitybuilding and the transformation of AGOA into a more reciprocal, long-term partnership framework.