South African President Cyril Ramaphosa has warned his country to "prepare" for potential exclusion from the African Growth and Opportunity Act, the United States duty-free trade programme for eligible sub-Saharan African countries. The scheme has been renewed until the end of 2028, but Ramaphosa said approval from Congress now requires President Donald Trump's signature. "Congress has decided that we should be kept in AGOA. What now remains is the executive," Ramaphosa said during a briefing, adding that other nations had been removed before and South Africa would not be the only one if it happened.
South Africa is the largest beneficiary of AGOA, but its eligibility has come under increased scrutiny from Washington as diplomatic relations deteriorate. The United States has cut aid to South Africa, expelled its ambassador and criticised Ramaphosa over what it describes as discrimination against white Afrikaners, allegations that South Africa rejects. In mid-September, Washington announced visa restrictions for South Africans it says promote "race-based discrimination, incite violence, or enable land confiscation without compensation." The United States has also launched a programme to resettle white Afrikaners claiming persecution in South Africa, admitting 16,287 South Africans under the scheme by September 30, a figure that dwarfed the five Afghans granted refugee status during the same period.
The US president reviews AGOA eligibility annually, and any removal requires 60 days' notice to Congress and the country in question. For an exclusion to take effect on January 1, it must be announced by November 2. Former President Joe Biden removed the Central African Republic, Gabon, Niger and Uganda from AGOA on October 30, 2023, with the exclusions taking effect on January 1, 2024. While Ramaphosa acknowledged that removal would be "devastating," he said South Africa would seek alternative markets to minimise the impact. "I need, as president, to prepare us if it ever happens," he said.
Cars are South Africa's second-largest export earner to the United States after precious metals, and they currently enter duty-free under AGOA. The automobile employers' organisation Naamsa said that 86,000 jobs were directly tied to the accord at car manufacturers in 2025, rising to 125,000 when including sub-contractors. Removal from AGOA would pose significant risks to South Africa's automotive sector and the wider economy if alternative trade arrangements cannot be quickly secured.