South Africa Welcomes US House Approval of AGOA Extension Bill

South Africa and the United States continue to engage in negotiations toward an Agreement on Reciprocal Tariffs, aimed at promoting balanced trade and investment while addressing bilateral trade barriers.

 

South Africa’s Minister of Trade, Industry and Competition, Parks Tau, has welcomed the approval of the African Growth and Opportunity Act (AGOA) Extension Bill by the United States House of Representatives, describing it as a positive development for African–US trade relations.

AGOA is a key US trade preference programme that grants eligible sub-Saharan African countries duty-free access to the US market, supporting exports, investment and industrial development across the region.

Certainty for Businesses and Regional Integration

The Department of Trade, Industry and Competition (DTIC) said the extension of AGOA will provide certainty and predictability for both African and American businesses that rely on the programme.

“The renewal of AGOA will complement and support the implementation of the African Continental Free Trade Area (AfCFTA) and the creation of regional value chains, while also supporting American businesses that depend on inputs and products imported under AGOA,” the department said.

Strong Bilateral Trade Ties

The United States remains South Africa’s third-largest export destination and one of its most important trade partners. In 2024, total SA–US bilateral trade reached approximately $15 billion, with South African exports valued at $8 billion and imports at $7 billion, resulting in a trade surplus of about $1 billion for South Africa.

Minister Tau emphasised that South Africa values its longstanding trade and investment relationship with the United States, describing it as critical to driving mutually beneficial economic growth, industrialisation and job creation.

“AGOA has played an important role in this partnership for more than two decades, supporting thousands of jobs in both countries and contributing to stable supply chains across key sectors,” the DTIC said. These sectors include automotive manufacturing, shipbuilding, agriculture, chemicals and apparel.

Commitment to Continued Engagement

Acknowledging that relations between the two countries have faced increased strain over the past year, the department stressed South Africa’s commitment to mature and constructive engagement on matters of mutual concern.

The DTIC noted that South Africa is:

• The largest sub-Saharan African importer of US goods

• The largest source of African foreign direct investment into the US

• A key supplier of critical raw materials for US supply chains

South Africa and the United States continue to engage in negotiations toward an Agreement on Reciprocal Tariffs, aimed at promoting balanced trade and investment while addressing bilateral trade barriers.

The DTIC said the AGOA extension reinforces the foundation for continued economic cooperation and shared prosperity between South Africa, the United States and the broader African region.