The African Growth and Opportunity Act (AGOA) has long been a vital lifeline for sub-Saharan African countries, providing duty-free access to the U.S. market for over 6,000 products. For Uganda, this program not only boosted exports but also supported countless small-scale entrepreneurs, particularly within the diaspora. However, Uganda's removal from AGOA in January 2024, alongside Niger, Gabon, and the Central African Republic, has left businesses in a precarious position, threatening livelihoods and stifling trade opportunities.

At the TUKOLE Foundation Business Network, we recognize the urgency of restoring Uganda’s AGOA eligibility and addressing the broader implications of this suspension. In this blog, we’ll explore the challenges, lessons from Mauritania’s successful reinstatement, and actionable strategies to reunite Uganda and other affected countries with AGOA’s trade benefits.

President Biden's administration supported the African Growth and Opportunity Act (AGOA) until the removal of Uganda, Niger, Gabon, and the Central African Republic over governance and political aspects in late 2023.
Many nations, including Ethiopia, have faced eligibility challenges due to concerns over governance, human rights, and conflict situations. Mauritania, while having initially benefited from AGOA, also encountered issues related to human rights that have brought its status into question.

The Impact of AGOA Suspension on the Diaspora

Uganda’s exclusion from AGOA has had ripple effects both locally and internationally:

Economic Losses for Small Businesses:
- Many small-scale entrepreneurs in the U.S., especially those in African markets, rely on Ugandan products such as textiles, crafts, and agricultural goods. Disrupted supply chains have led to closures and financial losses.
Diaspora Economic Strain:
- The diaspora economy, which bridges cultural and trade ties, has weakened. With limited opportunities for Ugandan exports, entrepreneurs are losing hope, and the broader community risks losing its economic influence.
Missed Trade Opportunities:
- Uganda’s export revenues from AGOA rose significantly from 2019 to 2022, reaching $39 billion annually. The suspension now jeopardizes these gains, risking long-term trade partnerships.

Lessons from Mauritania’s AGOA Reinstatement

Mauritania provides a blueprint for regaining AGOA eligibility. Suspended in 2019 due to labor rights concerns, the country successfully demonstrated measurable progress, including:

Addressing Human Rights Issues: Mauritania focused on eradicating forced labor and hereditary slavery.
Partnerships with Civil Society: Collaboration with labor and human rights organizations showcased transparency and commitment to change.
Engaging Diplomatically: Mauritania maintained consistent communication with U.S. trade officials, presenting action plans and progress reports.

These efforts culminated in Mauritania’s reinstatement in 2023, proving that a collaborative and targeted approach can yield results.

Vision for Restoring AGOA

The TUKOLE Foundation Business Network is deeply committed to leading meaningful efforts aimed at restoring Niger, Gabon, and the Central African Republic, Uganda’s eligibility under the African Growth and Opportunity Act (AGOA), while also advocating for other nations to be more proactive about engaging with diaspora business through AGOA. This strengthens the diaspora and the home country economic and cultural ties.

By joining us in this important mission, you not only support our efforts to enhance trade opportunities, but you also help foster sustainable economic growth and empower communities across these diverse nations. Together, with our collective efforts and determination, we can make a significant and lasting impact on the economic landscape of these regions.

Here’s how we plan to achieve this:

1. Mobilizing the Diaspora

The diaspora is a powerful force for change. By uniting enterprising diaspora businesses in every U.S. state, we aim to:

Advocate for AGOA reinstatement through coordinated outreach to policymakers and trade officials.
Support diaspora businesses affected by AGOA’s suspension by connecting them with alternative trade opportunities.

2. Partnering for Policy Reforms

We urge the Government of Uganda to take measurable steps toward addressing U.S. concerns:

Strengthening human rights protections while framing reforms in a culturally respectful manner.
Collaborating with civil society and international organizations to develop actionable benchmarks.

3. Leveraging Political Alignments

With bipartisan support for AGOA in the U.S., we see an opportunity to engage sympathetic policymakers, particularly those who prioritize trade-based diplomacy. By highlighting the mutual benefits of trade partnerships, we can foster constructive dialogue.

4. Learning from Success Stories

Drawing on Mauritania’s experience, we propose:

Developing transparent action plans to address AGOA’s eligibility criteria.
Demonstrating Uganda’s commitment to worker rights and governance improvements.

5. Strengthening Business Networks

TUKOLE is committed to creating platforms for collaboration between Ugandan businesses, the diaspora, and U.S. stakeholders. By streamlining communication and building trade capacity, we can enhance Uganda’s economic resilience.

A Call to Action

Restoring AGOA eligibility is more than a trade matter—it is an opportunity to rebuild trust, foster sustainable growth, and empower communities. We call upon the Embassy of Uganda, Uganda’s UN Mission, and national associations to join us in this critical endeavor. Together, we can:

Advocate for Uganda’s reinstatement into AGOA through unified diaspora efforts.
Facilitate policy reforms and partnerships to address U.S. concerns.
Reinvigorate the trade opportunities that sustain our businesses and communities.

At TUKOLE, we believe that trade is a powerful tool for diplomacy and development. The suspension of AGOA benefits should not be the end of Uganda’s journey but a stepping stone toward greater collaboration and progress. With lessons from Mauritania as our guide, we stand ready to lead and support efforts to restore AGOA eligibility for Uganda and other affected nations.

If you share our vision, join us in advocating for change. Let’s work together to ensure Uganda’s rightful place in the global economy.

#ReinstateAGOA: A Call to Action from the the Diaspora