The US House of Representatives has supported a renewal of the African Growth and Opportunity Act (AGOA), but South Africans should not get too optimistic. Hope for South Africa’s AGOA inclusion hinges on its renewal by the US Congress, offering vital duty-free access for exports, supporting jobs, and boosting economic recovery from stagnation, with recent House support for extending it to 2028 bringing optimism, though Senate approval and presidential signature are still needed amidst ongoing political tensions and eligibility debates, according to a BusinessTech report.
AGOA provides African markets with duty-free access to the US market and has been utilised by South African automobile and product exporters. Approximately 22% of South African exports to the US benefit from AGOA, resulting in billions of dollars in trade. Estimates suggest that half a million South African jobs are dependent on AGOA.
Fears that a renewal would not take place have remained high, as the current US administration has pushed an “America First” strategy and implemented high tariffs. However, the US House of Representatives broadly supported the bill, with bipartisan support from Republican and Democratic voters, passing by a vote of 340 to 54.
This would extend the AGOA renewal until 31 December 2028. The US sees the move as essential to limiting China and Russia’s growing influence on the continent. The bill still needs to be voted on in the US Senate and signed by US President Donald Trump amid a tense relationship between South Africa and the world’s largest economy.
While groups in South Africa have welcomed the move, concerns remain over a lack of clarity regarding South Africa’s position.
“When trade agreements hang in the balance, the South African Rand often bears the brunt, wiping out the thin margins of exporters far faster than any headline tariff could,” said James Booth from Verto.
Trade union Solidarity stated that South Africa is likely to be excluded from AGOA, as the list of countries benefiting from AGOA is determined by the White House. Amid the disputes between South Africa and the US, the prospects of a Trump administration including South Africa are slim.
“For the US to punish these ordinary citizens serves no purpose. In fact, AGOA enables the US to set specific conditions that would compel the South African government to act, for once, in the best interests of the country,” said Jaco Kleynhans, Head of Public Liaison at Solidarity.
A strained relationship
South Africa’s relationship with the US administration has been incredibly strained since Trump’s return. On the economic side, Trump imposed a 30% tariff on goods from South Africa in 2025, with questions over how the administration arrived at the figure.
Trump has now threatened that any country that works with Iran will be hit with sanctions. This comes on [the back] of Iran’s participation in a naval exercise with South Africa, China, and Russia in Cape Town.
On the political front, the president has also accused South Africa of conducting a white genocide, even if statistics continue to show that this is not the case. In response to the “genocide,” the administration allowed white South Africans to come to the USA as refugees.
The US has also limited diplomatic talks with South Africa and did not send senior government officials to the official G20 summit in Johannesburg in November 2025. While the US has appointed Leo Brent Bozell III as ambassador to South Africa, the opposite has yet to occur. Former South African ambassador to the US, Ebrahim Rasool, was deemed persona non grata after he had accused Trump of white extremism.
