The United States has announced plans to remove South Africa and Rwanda from its flagship African Growth and Opportunity Act (AGOA) trade programme, ending their preferential duty-free access to the American market from January 1, 2027, in a move that threatens exports and could further strain Washington’s relations with the two African countries.
US Trade Representative Jamieson Greer announced the decision on November 2, saying President Donald Trump had notified Congress and the governments of South Africa and Rwanda of his intention to terminate their participation in the programme following an annual review of eligibility requirements.
Greer said the two governments were engaging in practices inconsistent with AGOA’s eligibility criteria, particularly those relating to barriers to American trade and investment and activities considered threats to US national security and foreign policy interests.
Washington also cited concerns over corruption in South Africa, while its objections to Rwanda included issues involving human rights, political pluralism, workers’ rights and the rule of law.
The decision represents another setback for South Africa’s increasingly strained relationship with the Trump administration.
Washington has repeatedly criticised Pretoria over its domestic policies and international diplomatic positions, including its genocide case against Israel at the International Court of Justice, allegations that the South African government has rejected.
The Trump administration has also accused South Africa of failing to protect white citizens, a claim Pretoria has dismissed as misinformation.
Rwanda’s proposed removal comes amid escalating tensions over the conflict in eastern Democratic Republic of Congo (DRC). Washington has accused Kigali of supporting the M23 rebel group operating in eastern Congo, allegations Rwanda has denied. The United States recently imposed sanctions on Rwanda’s Ministry of Defence over the conflict.
The economic consequences could be particularly significant for South Africa, which has been AGOA’s largest beneficiary. The country exported approximately $1.7 billion worth of goods to the US under the programme in 2025, including automotive products, citrus fruit and wine.
South Africa’s trade ministry has previously estimated that AGOA exports account for approximately 10 per cent of its total exports to the United States and 1 per cent of its global exports. However, thousands of jobs in export-dependent industries could face pressure if businesses lose their preferential access.
Rwanda also stands to lose important trade opportunities, particularly for coffee and mineral exports. The country has already experienced restrictions under AGOA since 2018, when Washington suspended duty-free benefits for Rwandan apparel exports following a dispute over import tariffs.
Despite the proposed exclusions, South Africa has indicated that it remains willing to engage with Washington to address outstanding trade and diplomatic concerns. Its government has also pledged to support affected industries while accelerating efforts to diversify export markets.
President Cyril Ramaphosa has previously described the prospect of losing AGOA benefits as devastating but maintained that South Africa must explore alternative markets, including China, to reduce its dependence on American trade preferences.
The programme, established in 2000 under former US President Bill Clinton, provides eligible sub-Saharan African countries with duty-free access to the American market for thousands of products. It has been a central pillar of US economic engagement with Africa, supporting trade, investment and employment across the continent.
The announcement has also raised questions about Washington’s broader trade relationship with Africa, particularly as countries seek alternative economic partnerships amid growing global competition.
While losing AGOA eligibility would not prevent South Africa and Rwanda from exporting to the United States, their products could face higher import duties, making them less competitive against goods from countries retaining preferential access.
The proposed terminations are scheduled to take effect on January 1, 2027, leaving both governments with limited time to pursue diplomatic engagement and explore ways of protecting their exporters.
