South African President Cyril Ramaphosa has urged the country to prepare for the possibility of losing preferential access to the United States market under the African Growth and Opportunity Act (AGOA), as diplomatic relations between Pretoria and Washington continue to deteriorate. The warning comes amid uncertainty over whether US President Donald Trump will approve the extension of South Africa’s participation in the trade programme.
AGOA allows eligible sub-Saharan African countries to export thousands of products to the US market without paying certain import duties. The US Congress has voted to extend the programme through 2028, but the extension still requires executive approval. Ramaphosa said the outcome remained uncertain and that his government was preparing for the possibility of exclusion.
“Congress has decided that we should be kept in AGOA. What now remains is the executive,” Ramaphosa said, referring to the outstanding decision by the US administration. He added that South Africa was not the first country to face possible removal from the programme and might not be the last. His comments came as the two governments continued to disagree over several political and diplomatic issues.
The potential loss of AGOA benefits could affect South Africa’s export industries, particularly vehicle manufacturing. Cars are the country’s second-largest export earner from trade with the US after precious metals. According to the automotive industry body Naamsa, about 86,000 direct manufacturing jobs and an estimated 125,000 jobs, including those supported by subcontractors, are linked to the trade arrangement.
Ramaphosa said his government was exploring alternative export markets to reduce the economic impact if South Africa loses access to AGOA. He and Deputy President Paul Mashatile have been engaging international partners as Pretoria seeks to diversify trade relations. While acknowledging that losing the benefits would be “devastating”, the president urged South Africans not to panic, stressing the need to prepare for different outcomes as uncertainty over the US decision continues.
