Ramaphosa Warns of ‘Devastating’ Job Losses if US Excludes South Africa from AGOA
South African President Cyril Ramaphosa has warned that his country must prepare for possible exclusion from the United States’ African Growth and Opportunity Act (AGOA), as diplomatic and trade relations between Washington and Pretoria deteriorate.
Speaking on Monday, October 19, Ramaphosa said his government was still engaging with US counterparts but needed to prepare for the possibility of losing access to the preferential trade programme.
“I need, as president, to prepare us if it ever happens,” he said, acknowledging that exclusion could have a devastating impact on jobs.
AGOA provides eligible sub-Saharan African countries with preferential, duty-free access to the US market for thousands of products. South Africa is the programme’s largest beneficiary, with its automotive, agricultural and other export industries benefiting from the arrangement.
The programme has been renewed by the US Congress until the end of 2028, but South Africa’s continued eligibility remains uncertain amid tensions with the administration of President Donald Trump. Washington has criticised Pretoria over its domestic policies and foreign relations, while the South African government has rejected several US allegations.
Ramaphosa said he and Deputy President Paul Mashatile had been exploring alternative export markets to reduce the potential economic impact. He pointed to China’s decision to grant qualifying African products zero-tariff access as one opportunity, while South Africa is also pursuing closer trade ties with India.
Losing AGOA benefits could put pressure on South African exporters and employment, particularly in industries that rely on access to the American market. The extent of any impact would depend on the terms of a possible exclusion and whether businesses could redirect exports to other markets.
For now, South Africa remains engaged in discussions with Washington as it prepares for both the possibility of retaining its trade benefits and the consequences of losing them.
