The end of the African Growth and Opportunity Act (AGOA) is no longer a distant concern. It is fast becoming a lived reality for countries like Ethiopia and Lesotho, where shifting U.S. trade policies are already taking a toll. Ethiopia was suspended from AGOA in 2022 due to political concerns. Lesotho, once a model beneficiary of AGOA’s apparel preferences, is now confronting devastating 50% tariffs under newly imposed U.S. “reciprocal trade measures.”
These changes are more than symbolic. In 2024, Lesotho exported approximately $237 million worth of goods to the U.S., about 20% of its GDP, with over 75% of its garment production destined for U.S. retailers like Levi’s and Walmart. More than 30,000 workers, most of them women, are directly employed in Lesotho’s textile industry. With orders shrinking and factories closing, the country now finds itself scrambling for alternatives—highlighting the urgent need for African fashion and textile industries to diversify their export markets.
AGOA once served as a vital lifeline for African manufacturers in countries such as Kenya, Lesotho, Madagascar, Mauritius, South Africa, Swaziland, Botswana, and to a lesser extent Ghana, Ethiopia, Malawi, Tanzania, Uganda and Cape Verde. For example, U.S. imports of textiles and fabrics from Africa totalled $355 million in 2001 when AGOA had not yet taken effect and rapidly grew to reach $1.6 billion in 2004. By 2023, Africa’s textile and apparel exports to the U.S. reached $2.86 billion although they experienced rather volatile growth and still make up a fraction of U.S. textile and apparel imports – 4% compared to the Asia-Pacific region’s 70% and Central-South America’s 13%.
The sudden imposition of tariffs and AGOA suspensions have exposed the risks of unpredictable trade partners. For African nations like Ethiopia and Lesotho, the imperative now is clear: reimagine trade beyond AGOA, and pivot to markets with more stable and scalable demand, including locally.
Why Fashion Matters Now More Than Ever
The fashion industry stands at the intersection of economic transformation and cultural expression. Globally valued at over $1.7 trillion, it offers a unique blend of economic potential and soft power. Yet Africa accounts for less than 1% of that market—a staggering underrepresentation, especially considering the continent’s deep well of raw materials, heritage textiles, and creative talent.
For decades, African countries have mostly played a back-end role in the fashion value chain—exporting cotton, hides, and raw fibres while importing second-hand clothes and finished garments. That is beginning to change. Across the continent, designers are producing garments and accessories that combine African storytelling with global fashion sensibilities. Countries like Kenya, Ghana, South Africa, and Senegal are witnessing a rise in fashion entrepreneurship that deserves more investment and market access.
Fashion, if intentionally supported, can drive industrialisation, youth employment, SME growth, and stronger creative ecosystems. It links agriculture to manufacturing, and design to digital innovation. And it can be a source of both export revenue and cultural diplomacy.
China: A Strategic Trade and Creative Partner
In the face of declining U.S. demand, China, as well as Asia more broadly, presents a powerful and more predictable alternative. China has been Africa’s largest trading since 2009, with bilateral trade reaching $282 billion in 2023. It is also the world’s second largest consumer market worth $7 trillion in 2023 compared to the USA’s $19 trillion although it is set to be the world’s largest within just four and a half years.
For African countries, this is not just a market of scale—it is a market of opportunity. China’s rising middle class is showing increasing appetite for sustainable, heritage-based, and unique fashion narratives—precisely what many African brands offer.
Moreover, under the Forum on China-Africa Cooperation (FOCAC), China has pledged multiple trade policies that align with Africa’s trade and development goals to boost and diversify Africa to China trade. For example, in June 2025, China expanded its existing duty-free policy for 100% of products for LDC African countries to include all African countries (bar eSwatini that has chosen to maintain diplomatic relations with Taiwan). This is the only trade policy created by Africa’s trade partners that fully aligns with African Union’s African Continental Free Trade Area (AfCFTA) and ambitions to create regional manufacturing hubs given the policy eases African countries’ ability to source raw or semi-processed materials from different countries and manufacture into finished products, including apparenl, in countries with developed manufacturing capacity. This policy, alongside the China-Africa Economic and Trade Expo (CAETE), a biennial expo in Hunan province, China, is designed to enhance trade and economic cooperation and provide a platform for African business to find Chinese business partners to expand in China, has clearly positioned China as a strategic export region for African exports and value-added exports.
Importantly, cultural affinity plays a role. Both African and Chinese consumers value craftsmanship, traditional textiles, and design rooted in identity. This creates a natural bridge for African fashion brands to connect with Chinese consumers on shared values, not just price points.
The Shanghai Launchpad: Fashion as Diplomacy
At Shanghai Fashion Week 2025, the potential of African fashion in China came into sharp focus. With support from our firm, Development Reimagined, and Afreximbank – Africa’s largest trade financier – and other partners, 22 African brands made their mark—from Rich Mnisi and David Tlale in South Africa to KikoRomeo from Kenya, Taibo Bacar from Mozambique, and Awa Meité from Mali. These designers brought avant-garde silhouettes, reimagined traditional textiles, and sustainable practices to a discerning Chinese audience.
The showcase was more than a runway—it was a launchpad. Designers engaged with buyers, stylists, and digital influencers, and participated in site visits with Chinese fashion tech companies like Style3D, Alibaba, and Wansli Sci-tech. These engagements introduced them to livestreaming strategies, digital sampling, and e-commerce tactics tailored to the Chinese market.
The event also opened doors to deeper collaboration, new distribution channels, and potential brand partnerships. In short, Shanghai Fashion Week demonstrated what is possible when trade policy, cultural exchange, and entrepreneurship converge with purpose.
From Showcase to Strategy
For Africa to seize this moment, intentional action is needed at both policy and business levels:
- National export strategies should prioritize creative industries like fashion and provide targeted incentives for fashion SMEs.
- Trade and investment promotion agencies must expand their focus to include markets like China and build capacity in digital trade readiness.
- Textile and garment hubs must be revitalized with infrastructure investments that support sustainability and innovation.
- Trade agreements like FOCAC should be more actively leveraged to reduce barriers and increase exports.
- Digital commerce ecosystems should be built to help African brands reach Chinese consumers through mobile, social, and livestream platforms.
Redefining Africa’s Trade Story
The decline of AGOA and Trump’s new tariffs, while very problematic, should not spell despair. For Lesotho, Ethiopia, and others, this is a pivotal moment to reset our strategy — toward agency.
The fashion sector offers a clear path forward: one that prioritizes value addition, cultural storytelling, and export diversification. The success of African brands at Shanghai Fashion Week is not just symbolic—it is strategic. With the right investments and partnerships, “Made in Africa” products can transition from the margins of global trade to the centre stage, whether or not the U.S. is with us.
