The U.S. Senate has approved the extension of the African Growth and Opportunity Act (AGOA) through 2028. For Madagascar, this decision is critical: the preferential U.S. trade regime directly protects 400,000 jobs, primarily in textiles and apparel, benefiting 59 local companies currently enrolled in the scheme.
A crucial trade regime for Malagasy textiles
AGOA allows Malagasy products — fabrics, clothing, footwear — to access the U.S. market duty-free. For a country where the textile industry is one of the largest formal employers, every revision of the agreement generates collective anxiety. The extension to 2028, approved by the Senate in August 2026, provides critical visibility for operators and their international buyers.
«This progress results from advocacy conducted by the Malagasy government over several months», said the Ministry of Commerce, commending the diplomatic work carried out with U.S. authorities. AGOA covers 32 African countries in total, but Madagascar is among the continent's top exporters under the scheme.
Next step: the full U.S. Congress in September
The Senate approval does not close the file. The full U.S. Congress must still examine the extension, with a vote expected in September 2026. This timeline encourages operators to maintain their vigilance and continue diversifying their markets.
On that front, the Ministry of Commerce announced that Madagascar is actively exploring new markets: South Africa, China and Russia, while consolidating its flows with the European Union via the Economic Partnership Agreement (EPA). A long-term strategy to reduce exclusive dependence on AGOA, considered essential.
Why it matters
With 400,000 direct jobs at stake, AGOA is not just a line in a trade agreement — it is a lifeline for hundreds of thousands of Malagasy families. The extension to 2028 provides two years of visibility to invest, train and export. But the real question remains diversification: if AGOA were to disappear, the textile sector would face immediate pressure. That is the strategic challenge of the next decade for Madagascar.
Source: Newsmada, Malagasy Ministry of Commerce, August 2026.