President Cyril Ramaphosa has urged South Africans to prepare for the possibility of losing preferential access to the United States market under the African Growth and Opportunity Act (AGOA), warning that a post-AGOA economic landscape could have devastating consequences for jobs and key export industries.
Speaking amid growing uncertainty over South Africa’s future participation in the US trade programme, Ramaphosa said his government was engaging Washington while simultaneously exploring alternative export markets to cushion the economy against a potential exclusion from the arrangement.
“I need, as President, to prepare us if it ever happens,” Ramaphosa said, describing the possible impact on employment as “devastating”.
AGOA grants eligible African countries duty-free access to the US market for thousands of products and has been a cornerstone of South Africa’s trade relationship with the US for more than two decades.
South Africa is the programme’s largest beneficiary, with sectors such as automotive manufacturing relying heavily on preferential access to the American market.
Ramaphosa’s warning comes as relations between Pretoria and Washington remain strained.
The administration of US President Donald Trump has repeatedly criticised Pretoria over allegations that white citizens are being persecuted, claims the South African government has dismissed as false and originating from fringe groups.
As diplomatic tensions have intensified, South Africa’s AGOA eligibility has come under increasing scrutiny in Washington, with some US officials suggesting the country should be removed from the programme.
Although AGOA has been renewed by the US Congress until the end of 2028 and now awaits Trump’s signature, uncertainty remains over whether South Africa will continue to qualify for its benefits.
JN/APA