CAPE TOWN – South Africa faces the loss of preferential access to the United States market after the Trump administration announced plans to remove the country from the African Growth and Opportunity Act (AGOA), threatening a trade arrangement that has supported billions of dollars in exports.
The Zimbabwe Mail, reporting from coverage by South African publication BusinessTech and the statement issued by the Office of the US Trade Representative (USTR), said President Donald Trump had notified Congress and the governments of South Africa and Rwanda of his intention to terminate their eligibility from January 1, 2027.
US Trade Representative Jamieson Greer said the administration had concluded that both countries were engaging in practices inconsistent with AGOA’s eligibility requirements. Washington cited barriers to US trade and investment, corruption and concerns over national security and foreign policy in South Africa.
The decision places pressure on South African exporters, which have benefited from duty-free access for qualifying products under the programme. South Africa was the largest AGOA beneficiary, exporting approximately US$1.7 billion in goods to the US under the arrangement in 2025, Reuters reported.
AGOA, enacted in 2000, provides eligible sub-Saharan African countries with preferential access to the US market for more than 1,800 products. Its extension through 2028 does not guarantee individual countries continued eligibility, which remains subject to annual review.
The potential withdrawal would increase the tariff burden on affected exports. Presidential agricultural envoy Wandile Sihlobo estimated that losing AGOA preferences could add 3.4 percentage points to the existing 12.5% US tariff on South African goods, although the precise impact would vary by product.
South Africa has said it is prepared for an adverse outcome and remains open to negotiations with Washington. Trade Minister Parks Tau has also outlined plans to diversify export markets through opportunities in Africa, Asia, Europe and other trading regions. The government previously said it would have 60 days to address US concerns before any suspension could take effect.
The US decision is not a trade ban. South African companies will continue exporting to the American market, but without AGOA preferences, affected products could face higher import costs, potentially weakening their competitiveness against suppliers from countries retaining preferential access.
For Pretoria, the challenge will be to preserve commercial ties with Washington while expanding alternative markets without losing established export relationships.
