US lawmakers have introduced legislation to extend the African Growth and Opportunity Act (AGOA) until 2028 but rising tensions over South Africa’s foreign policy are casting fresh doubt on the continent’s most industrialised economy’s continued participation.
The AGOA Extension Act, sponsored by Republican representatives Jason Smith and Adrian Smith, seeks to renew Washington’s flagship trade programme with sub-Saharan Africa after it expired on 30 September this year.
The bill, passed by the House Ways and Means Committee this week, would provide duty-free access to the US market for thousands of African products until 31 December 2028, offering African and US exporters greater certainty.
Enacted in 2000, AGOA has been credited with expanding trade and investment between the US and Africa, granting eligible countries duty-free access for more than 1,800 products in addition to those covered under the Generalised System of Preferences.
Eligibility is subject to annual reviews covering governance, human rights, market access and alignment with US foreign policy interests.
South Africa, the programme’s largest beneficiary, accounted for nearly half of AGOA imports in 2024, valued at $3.76 billion.
Yet lawmakers argue Pretoria’s foreign policy choices – including joint military exercises with Russia and China and closer ties with Iran, Hamas and Hezbollah – undermine US interests.
Concerns over corruption and human rights abuses have further fuelled calls to reassess its status.
At a Senate Appropriations subcommittee hearing this week, US Trade Representative Jamieson Greer faced questions from Senator John Kennedy who challenged South Africa’s inclusion, arguing that it “is not America’s friend.”
Supporters of the extension warn that uncertainty threatens US economic and strategic interests in Africa, which holds an estimated 30 percent of the world’s critical mineral reserves.
Lawmakers note that China has already invested billions to secure influence over these supply chains, intensifying pressure on Washington to maintain a stable trade framework.
JN/APA