South African President Cyril Ramaphosa stated on Monday that the nation should prepare for the possibility of being removed from the African Growth and Opportunity Act, a US trade programme that grants eligible sub-Saharan African countries duty-free access to the American market. According to Punch, the president made these remarks as ties between Washington and Pretoria continue to strain, noting that while Congress has approved the country's continued eligibility, the final decision now rests with the executive branch.
Africanews reported that the trade agreement has been renewed by Congress until the end of 2028, but the extension now awaits President Donald Trump’s signature. Ramaphosa acknowledged that the potential loss of this status would be "devastating" for the economy, yet he urged citizens not to panic by suggesting that South Africa is neither the first nor the last country to face such a change. He indicated that the government is actively seeking alternative markets to mitigate the economic shock should exclusion occur.
The automotive sector faces significant risk under this scenario. Punch noted that within the AGOA framework, Washington exempts South African cars from customs duties, making vehicles the country's second-largest export earner to the United States after precious metals. Industry data cited by both publications indicates that 86,000 jobs are directly tied to the accord at car manufacturers, a figure that rises to 125,000 when subcontractors are included.
Bilateral relations have deteriorated since the current US administration took office, with Washington cutting aid and expelling South Africa’s ambassador. Punch highlighted that these tensions include disputes over allegations of discrimination against white Afrikaners, a narrative that Pretoria has frequently rejected. In mid-September, the US announced visa restrictions targeting South Africans who promote "race-based discrimination" or enable land confiscation, further complicating the diplomatic landscape.
The procedural timeline for exclusion is strict. Africanews explained that any removal requiring an effective date of January 1 must be announced by November 2, with a 60-day notice period required for Congress and the affected country. Former President Joe Biden previously used this mechanism to exclude four African nations in 2023, setting a precedent for the current administration's potential actions.