‘A Solution Depends On…’: South Africa Responds To AGOA Exit

There was a sense of inevitability when Africa’s largest economy received notice of its omission from the African Growth and Opportunity Act (AGOA) on Monday. Predictable or not, the southern African nation now finds itself at a crossroads.

After weeks of speculation, the United States (U.S.) announced on Monday that South Africa and Rwanda will no longer trade under AGOA from January 2027, citing concerns over both governments “engaging in practices that are inconsistent with AGOA’s eligibility criteria,” U.S. Trade Representative, Jamieson Greer said in a statement.

South Africa’s President, Cyril Ramaphosa warned citizens of a possible AGOA expulsion, around a fortnight ago in a briefing with editors and reporters, stating: “I need, as president, to prepare us if it ever happens…We are not the first and only country to be taken out of AGOA. And I believe we will not be the last.”

The country has been the largest beneficiary of AGOA since its inception in 2000, exporting roughly $1.7 billion worth of goods, in 2025, under the agreement that provides duty-free access to the U.S. market for thousands of products.

Ramaphosa previously admitted such a decision would be “devastating” for the economy.

The decision comes as diplomatic tensions between the U.S. and South Africa failed to dissipate since May last year.

Meanwhile, a letter sent by President Donald Trump to Ramaphosa–obtained by SABC News– reasoning the country’s AGOA termination stated, “In particular, South Africa continues to maintain significant tariff and non-tariff barriers affecting U.S. trade and investment, including barriers involving agriculture market access, regulatory requirements, investment protections, and intellectual property.”

Trump concluded the letter by saying: “It is my hope that your government will work closely with my Administration to address these issues so that South Africa can once again become eligible for AGOA benefits.”

In a response late on Monday, South Africa’s Minister of Trade, Industry and Competition, Parks Tau, revealed their intent to remain cordial and seek a resolution, saying in a statement that “South Africa remains committed to a balanced and mutually beneficial partnership with the U.S. that enables preferential trade that supports beneficiation of critical minerals at source and promotes investment.”

Tau also implied that is up to both states (the U.S. and South Africa) to find common ground, stating: “This decision does not define the broader relationship between South Africa and the United States; however, a solution depends on the willingness of both parties to find solutions.”

By Freddie Hiney. Freddie Hiney is a multimedia journalist at FORBES AFRICA, based in Cape Town. He covers business, entrepreneurship, sport and economic stories across the continent, from Southern African markets to pan-African developme…

Mar 9, 2027 · Time Square, Pretoria, Gauteng, South Africa · In Person Event

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