AGOA Extension Opens Doors for Small-Scale Food Enterprises on Both Sides of the Atlantic

2 hours ago
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The recent one-year extension of the African Growth and Opportunity Act (AGOA) through 2028 creates a timely opportunity for small and medium-sized food and agriculture businesses in both the United States and Africa. Signed into law on February 3, 2026, after the agreement expired on September 30, 2025, this extension, while shorter than the proposed 16-year renewal, provides a near-term opportunity for enterprises seeking to build or expand trans-Atlantic trade relationships.

The Agricultural Trade Opportunity

AGOA's impact on agricultural trade has been substantial. Since the program's inception, agricultural exports from AGOA beneficiaries to the U.S. have grown from $750 million in 2000 to $2.9 billion in 2022. Leading exporters include South Africa ($446 million in agricultural exports in 2023), Côte d'Ivoire ($127 million), Ghana ($86 million), Kenya ($78 million), and Senegal ($70 million).

The products succeeding under AGOA reflect clear areas of growth, including citrus fruits, grapes, macadamia nuts, fresh vegetables, cassava, peppers, coffee, and value-added agricultural products. Kenya’s macadamia exports, for example, grew from $72,000 in 2000 to $52 million, demonstrating the impact of preferential market access.

The Small Business Challenge

While these figures show progress, they represent only part of the potential. Small and medium-sized enterprises make up 95 percent of Africa’s business ecosystem, yet many struggle to take full advantage of AGOA. A primary barrier is the complexity of meeting U.S. market entry requirements, particularly food safety standards.

Agricultural products are among the most promising categories for AGOA trade, but U.S. sanitary and phytosanitary requirements can be difficult to navigate. For small businesses with limited capital and technical capacity, meeting FDA requirements, achieving certification, and maintaining proper documentation can be challenging.

Unlike large companies with dedicated compliance teams, small food enterprises often lack the resources to manage these processes efficiently. As a result, many viable products do not reach U.S. markets, and opportunities for diversification remain underutilized.

Two-Way Trade Benefits

The opportunity is not one-directional. AGOA has supported increased African exports to the U.S. while also strengthening trade relationships that enable American businesses to engage with African markets. With Africa importing approximately $78 billion in food annually, U.S. food businesses have growing opportunities to source ingredients and expand into new markets.

African suppliers offer access to specialty products, evolving value-added goods, and new sourcing partnerships. At the same time, Africa’s urban growth and expanding middle class are increasing demand for processed foods, ingredients, and food safety technologies from U.S. companies.

Support Infrastructure Exists

The U.S. government supports trade through regional hubs located in Accra, Ghana; Gaborone, Botswana; and Nairobi, Kenya. These hubs provide technical assistance to export-ready businesses. The West Africa Trade and Investment Hub, for example, offers co-investments ranging from $250,000 to $2 million to support SMEs and agribusinesses.

Despite these resources, a clear gap remains in the specialized support needed to help small food businesses meet U.S. food safety requirements and become audit and certification ready.

Food Enterprise Solutions' Role in Bridging the Gap

This is where Food Enterprise Solutions (FES) plays an important role. As a B Corp-certified organization focused on food safety, technical assistance, and market access, FES works to address the barriers that prevent small food businesses from fully utilizing AGOA.

FES’s food safety training programs focus on the compliance challenges that affect smaller enterprises. Its accelerator services provide enterprise consulting, technical training in food safety and nutrition, market entry strategy, and investment readiness support. These services align with the needs of businesses working to meet international trade requirements.

FES is also working with the FDA to support African food exporters in becoming audit and certification ready. This helps make AGOA a more practical market access pathway for businesses that may not otherwise have the resources to meet regulatory expectations.

FES supports both sides of the trade relationship. For African exporters, it provides the technical foundation needed to meet U.S. standards. For U.S. businesses, it offers market intelligence, supply chain strategy, and partnership support to reduce risk and improve market entry outcomes.

Looking Ahead

The extension of AGOA through 2028 increases the need for timely action. While a longer extension would provide greater planning certainty, the current timeline means small businesses must focus on building the capabilities, relationships, and compliance systems needed to participate in duty-free trade.

For small-scale food and agriculture enterprises on both continents, the combination of AGOA’s preferential access and targeted technical assistance in food safety compliance creates a meaningful opportunity. Businesses that invest in becoming audit-ready and building trade relationships will be better positioned to participate in current and future market opportunities.

Food Enterprise Solutions supports safe, nutritious, and sustainable food systems globally through business-driven solutions. Learn more about our accelerator services and food safety programs at www.foodsolutions.global or contact us at info@foodsolutions.global