New york: President Cyril Ramaphosa has called for the renewal of the African Growth and Opportunity Act (AGOA), which is set to expire later this month. AGOA is a crucial trade agreement that grants eligible sub-Saharan African countries, including South Africa, duty-free access to the United States market for over 1,800 products, in addition to more than 5,000 products eligible under the Generalised System of Preferences programme.
According to South African Government News Agency, AGOA has been a cornerstone of US-Africa trade for nearly 25 years. In South Africa, it has been instrumental in supporting jobs across various sectors, from auto assembly plants to farms and high-tech manufacturing hubs. President Ramaphosa emphasized that the expiration of AGOA would undermine these gains and disconnect the link to the Generalised System of Preferences, critical to many exporters. He made these remarks during the SA-USA Trade and Investment Dialogue at the United Nations General Assembly in New York.
The President’s appeal comes at a time when South Africa faces a 30% tariff on its exports to the United States. He noted that the newly imposed reciprocal tariffs have disrupted supply chains and created uncertainty for exporters and American importers alike. Ramaphosa expressed South Africa’s willingness to address these issues constructively and find mutually beneficial solutions with the United States.
Ramaphosa highlighted the importance of sustaining and expanding trade flows to keep companies competitive and ensure that both countries’ consumers and workers benefit from the partnership. He stressed that predictable, preferential access to the US market is vital not only for South Africa but also for American companies relying on reliable imports.
The President also pointed to Africa’s growing market potential, driven by the African Continental Free Trade Area, which creates a market of 1.4 billion people. South Africa, with its infrastructure, financial systems, and regional linkages, serves as an ideal gateway for US businesses looking to expand into the continent.
Ramaphosa detailed opportunities in various sectors, including agriculture, automotives, green energy, digital services, pharmaceuticals, and healthcare. He encouraged greater collaboration between US companies and South African institutions to build skills and innovation capacity for the future.
The President underscored South Africa’s desire for partnerships that bring more US investment into renewable energy, digital infrastructure, advanced manufacturing, and the green hydrogen economy. He also expressed interest in expanding South African companies’ presence in the United States, particularly in areas like food, retail, creative industries, and fintech.
Ramaphosa concluded by reaffirming that the relationship between South Africa and the United States is defined by a shared commitment to innovation, entrepreneurship, sustainable development, and inclusive prosperity, beyond just trade figures and investment flows.