President Donald Trump has formally notified Congress of his intention to remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), a move that would end the two countries’ duty-free access to the US market from 1 January 2027.
US Trade Representative Jamieson Greer announced on Monday that the decision followed an annual review of AGOA eligibility, which found that both countries were engaging in practices deemed inconsistent with the programme’s requirements.
Greer said the review identified “concerning and pervasive” practices, including barriers to American trade and investment and actions considered contrary to US national security and foreign policy interests.
“President Trump found that the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA’s eligibility criteria,” Greer said in a statement.
The US cited corruption concerns in South Africa while concerns regarding Rwanda included issues related to the rule of law, political pluralism and human rights.
The decision has potentially far-reaching implications, particularly for South Africa, which is AGOA’s largest beneficiary.
In 2025, South Africa exported an estimated US$1.7 billion worth of goods to the US under AGOA preferences, including motor vehicles, vehicle components, agricultural products, chemicals and manufactured goods.
By contrast, Rwanda’s exposure is considerably smaller, with US imports from the country amounting to approximately US$44 million last year.
Although trade between the two countries and the US will continue under normal tariff arrangements, the removal of AGOA benefits is expected to increase the cost of affected exports and could place pressure on industries and jobs linked to the US market.
The announcement comes weeks after South African President Cyril Ramaphosa acknowledged the growing risk that Pretoria could lose preferential access to the American market, urging businesses and workers to prepare for a possible change in trade relations.
Speaking amid escalating diplomatic tensions with Washington, Ramaphosa last month said South Africa needed to diversify its export destinations and reduce its dependence on any single market as uncertainty mounted over the country’s future participation in AGOA.
Established by the US Congress in 2000, AGOA grants eligible sub-Saharan African countries duty-free access to the US market for thousands of products.
The programme was designed to promote economic growth, industrialisation, trade and investment across Africa while encouraging participating countries to uphold principles such as good governance, market-based economic reforms, respect for the rule of law and the removal of barriers to trade and investment.
Eligibility is reviewed annually by Washington.
Relations between Pretoria and Washington have deteriorated sharply since Trump’s return to office.
The US administration has repeatedly criticised South Africa’s domestic and foreign policies, including Pretoria’s genocide case against Israel at the International Court of Justice and what Trump has alleged is discrimination against white South Africans, claims rejected by the South African government.
South African Trade Minister Parks Tau on Monday sought to downplay the wider implications of the latest decision, saying the move did not define the broader relationship between the two countries.
He said South Africa remained committed to pursuing trade, investment and economic cooperation with the US and noted that Pretoria had offered additional concessions during discussions aimed at preserving AGOA eligibility.
JN/APA