How Uganda AGOA ban impacts East Africa investments

The decision by the Biden administration to kick out Uganda from its African Growth and Opportunity Act (AGOA) programme could have far-reaching consequences on the investment climate in the East African region.

The impact could go beyond the East African region, trade experts say, and Kenya and Tanzania are poised to benefit from the “spoils” if they come up with strategies to woo US corporations moving out of Uganda as a result of Washington’s action.

There are also those of the view that should Uganda lay its strategy properly, its pharmaceutical industry, in which the US government has heavily invested, could be available to African and European investors.

The move could also affect the East African Community’s Rules of Origin as the US could block goods from the EAC partner states produced using raw materials from Uganda.

Washington officially struck out Uganda and three other African countries —Central African Republic, Gabon, and Niger — from AGOA from January 1, effectively ending Kampala’s ability to export certain commodities to the US duty-free.