Kenya has achieved a notable milestone in its trade relations with the United States, ranking second among sub-Saharan African countries in the exportation of non-oil products under the African Growth and Opportunity Act (AGOA). This development is highlighted in the 2024 biannual AGOA report by the US government, which provides a comprehensive overview of trade between the US and sub-Saharan Africa.
In 2023, Kenya exported goods valued at $510 million (approximately Sh67.8 billion) to the US, predominantly consisting of apparel. This impressive figure places Kenya just behind South Africa, which remains the leading exporter of non-oil products under AGOA. South Africa’s dominance in this sector is underscored by its $3.6 billion worth of non-crude oil exports, which include a wide range of products such as passenger vehicles, yachts, precious jewelry, chemicals, and citrus fruits. Kenya’s strong performance reflects its growing significance in the trade landscape of sub-Saharan Africa, particularly in the textile and garment sector.
The overall trade between the US and sub-Saharan Africa saw a substantial increase in 2023, reaching a total of $47.5 billion. This represents a 6.2% rise from $44.7 billion in 2021, highlighting a positive trend in economic engagement between the two regions. US exports to sub-Saharan Africa amounted to $18.2 billion in 2023, marking a 10.4% increase from $16.5 billion in 2021. This growth is primarily attributed to heightened exports of aircraft and petroleum products, which are key components of the bilateral trade.
Conversely, U.S. imports from sub-Saharan Africa totaled $29.3 billion in 2023, up 3.8% from $28.2 billion in 2021. The major imports included crude petroleum, which accounted for $7.3 billion, precious metals at $4.7 billion, gemstones at $2.2 billion, silverware and related articles at $1.8 billion, motor vehicles at $1.7 billion, and apparel at $1.4 billion. This diversified import portfolio reflects the region’s rich natural resources and growing industrial capabilities.
The top export markets for the US in sub-Saharan Africa in 2023 included South Africa with $7.2 billion, Nigeria with $2.6 billion, Ethiopia with $1.2 billion, Ghana with $850 million, and Angola with $595 million. U.S. exports to these markets were dominated by aircraft ($1.8 billion), petroleum products ($1.3 billion), motor vehicles ($1.2 billion), natural gas and components ($1.2 billion), and certain motor vehicle parts ($861 million). These figures underscore the strong trade ties and economic interdependence between the US and key African economies.
The services sector has also seen significant growth in the US-Africa trade relationship. Exports of services to Africa increased to $14.4 billion in 2023, up from $11.1 billion in 2020. Key service exports included travel services at $3.6 billion, financial services at $2.4 billion, business and management consulting services at $1.6 billion, and air transport at $1.0 billion. On the flip side, U.S. imports of services from Africa rose to $10.4 billion in 2022, up from $5.4 billion in 2020, with leading sectors being travel, personal and cultural services, business consulting, and air transport.
AGOA, which has been a cornerstone of U.S. trade policy with sub-Saharan Africa since its enactment in 2000, continues to provide eligible countries with duty-free access to over 1,800 products. The act has played a crucial role in boosting trade and investment opportunities for African nations. Currently, 32 countries benefit from AGOA, and President Biden has expressed support for its reauthorization, describing it as a “landmark, bipartisan law” that has been vital for U.S.-Africa trade relations for over two decades.
Kenya’s achievement in the AGOA framework not only highlights its growing trade capabilities but also demonstrates the positive impact of trade agreements in fostering economic growth and diversification within sub-Saharan Africa.
