South Africa backs extension of US–Africa trade deal as companies brace for tariff pressures
South Africa has welcomed a move by the United States Congress to extend a key trade preference program for African countries, describing it as an important source of short-term relief for exporters facing higher costs amid new US tariffs. The development comes at a time of strained political relations between Pretoria and Washington, underscoring the continued economic interdependence between Africa’s most industrialized economy and the world’s largest consumer market.
At the center of the debate is the African Growth and Opportunity Act (AGOA), a flagship US trade initiative enacted in 2000 that grants duty-free access to the American market for thousands of products from eligible sub-Saharan African countries. For more than two decades, AGOA has played a significant role in shaping trade patterns between the United States and Africa, particularly benefiting countries with relatively diversified export bases. Among them, South Africa has consistently emerged as the largest beneficiary, leveraging the program to expand exports of vehicles, agricultural products, and minerals to the US.
Earlier this week, the US House of Representatives passed legislation approving a three-year extension of AGOA by an overwhelming bipartisan margin of 340 to 54. The bill now moves to the Senate, where it must be approved before being sent to President Donald Trump for signature. While the extension falls short of the longer renewal period sought by many African governments and business groups, Pretoria has signaled that even a short-term prolongation would help stabilize trade flows and provide breathing room for companies navigating an increasingly uncertain global trade environment.
In a statement issued on January 13, South African Minister of Trade, Industry and Competition Parks Tau said the extension would offer “necessary relief” to........
