Ramaphosa Urges Renewal of AGOA as SA Seeks to Boost US Trade and Investment

President Cyril Ramaphosa has called for the urgent renewal of the African Growth and Opportunity Act (AGOA), a cornerstone of trade relations between the United States and sub-Saharan Africa. The agreement, which expires this month, provides eligible African countries duty-free access to the U.S. market for over 1,800 products, in addition to the more than 5,000 items covered under the U.S. Generalised System of Preferences (GSP).

AGOA’s Role in South Africa’s Economy

For nearly 25 years, AGOA has underpinned trade flows between Africa and the United States. South Africa, in particular, has benefited across multiple industries, from automotive assembly and high-tech manufacturing to agriculture. Ramaphosa emphasised that its expiry would jeopardise hard-won economic gains and remove access to the GSP framework, a crucial tool for exporters.

“AGOA has supported jobs from auto plants to farms and high-tech hubs. Its expiry would undermine those gains and remove a vital trade link for many of our exporters,” he said during the SA-USA Trade and Investment Dialogue held on the sidelines of the United Nations General Assembly in New York.

Tariffs Straining Relations

The President’s appeal comes amid rising tensions in bilateral trade. Recently, the United States imposed a 30% tariff on certain South African exports, disrupting supply chains and creating new uncertainties for both South African businesses and American importers.

“These measures ripple across industries and communities in both our countries,” Ramaphosa warned. While acknowledging U.S. concerns, he said South Africa was committed to addressing issues constructively to sustain and expand trade flows.

South Africa as a Gateway to Africa

Ramaphosa highlighted South Africa’s unique position as a strategic entry point into Africa’s emerging markets. With the African Continental Free Trade Area (AfCFTA) creating a unified market of 1.4 billion people, South Africa’s advanced infrastructure, robust financial systems, and strong regulatory frameworks make it an attractive hub for U.S. businesses.

“South Africa is reforming and modernising its economy, addressing bottlenecks, and diversifying exports. We offer not just a domestic market of 60 million people but a gateway to a continent of immense potential,” the President said.

Investment Opportunities for U.S. Companies

Ramaphosa outlined several priority sectors for deepened collaboration:

• Agriculture: Expansion of agro-processing and high-value food production.

• Automotives: Transition to electric vehicles and battery manufacturing.

• Green Energy: Renewable energy projects and leveraging platinum reserves for green hydrogen.

• Digital and Technology: Growth in ICT, fintech, and innovation driven by a young, skilled workforce.

• Healthcare and Pharmaceuticals: Expanding local capacity to strengthen global supply chains.

• Aerospace and Defence: Opportunities for collaboration with South Africa’s advanced capabilities.

The President also stressed the importance of education and research partnerships, encouraging U.S. companies to collaborate with South African universities and training institutions to build future-ready skills.

Building a Balanced Partnership

Ramaphosa reaffirmed that South Africa seeks not only to attract American investment but also to expand its footprint in the United States. Sectors such as food and beverages, retail, creative industries, and fintech hold potential for South African businesses in the U.S. market.

He underscored that the bilateral relationship should go beyond numbers and balance sheets. “It is defined by a shared commitment to innovation, entrepreneurship, sustainable development, and inclusive prosperity,” Ramaphosa said.

A Call for Renewal and Growth

By advocating for AGOA’s renewal, South Africa hopes to secure predictable and preferential market access, reduce trade frictions, and unlock new areas of collaboration. Ramaphosa’s vision is to create a balanced, future-focused partnership where trade, investment, skills development, and technological innovation benefit both South Africans and Americans.