President Cyril Ramaphosa says South Africa will explore alternative export markets to limit the economic impact if the country loses its preferential trade benefits under the United States’ African Growth and Opportunity Act (AGOA).
Speaking during a briefing on Monday, Ramaphosa urged South Africans to prepare for the possibility of the country being excluded from the programme amid deteriorating diplomatic relations between Pretoria and Washington.
AGOA provides eligible sub-Saharan African countries with preferential access to the US market. The programme has been renewed until the end of 2028, following approval by the US Congress, but still requires President Donald Trump’s signature.
South Africa is the programme’s largest beneficiary, although its continued eligibility has come under scrutiny as tensions between the two countries escalate.
“Congress has decided that we should be kept in AGOA. What now remains is the executive,” Ramaphosa said.
He added that South Africa should prepare for the possibility of exclusion, noting that other countries had previously lost their eligibility.
Ramaphosa acknowledged that losing the trade benefits would have a significant economic impact but urged the public not to view such a development as the end of the country’s economic prospects.
He said the government would seek alternative markets to cushion the impact on local industries and exporters.
Relations between South Africa and the US have deteriorated since Trump returned to office, with Washington cutting aid, expelling South Africa’s ambassador and making allegations of discrimination against white Afrikaners, which Pretoria has rejected.
In September, the US also announced visa restrictions targeting South Africans accused of promoting race-based discrimination, inciting violence or enabling land confiscation without compensation. These issues remain points of contention between the two governments.
Washington has also introduced a programme to resettle white Afrikaners who claim they face persecution and violent crime in South Africa. The South African government has rejected claims of systematic persecution.
Under AGOA, South African products, including vehicles, benefit from preferential access to the US market.
According to South African tax authorities, vehicles are the country’s second-largest export earner to the US after precious metals.
The potential loss of these benefits has raised concerns about the impact on the automotive sector and employment. In 2025, automotive employers’ organisation Naamsa said about 86,000 jobs at vehicle manufacturers were directly linked to the trade agreement, rising to approximately 125,000 when subcontractors were included.
The US president reviews countries’ eligibility for AGOA annually. Any decision to remove a country requires 60 days’ notice to Congress and the country concerned.
Ramaphosa’s comments come as the government seeks to protect South Africa’s trade relationship with the US while preparing for the possibility of further economic and diplomatic challenges.