Pretoria – Trade, Industry and Competition Minister Parks Tau has welcomed the approval of the African Growth and Opportunity Act (AGOA) Extension Bill by the U.S. House of Representatives.
AGOA, first enacted in 2000, which provides duty-free access to the U.S. market for eligible Sub-Saharan countries and products, was passed through a 340 to 54 vote of support.
The Bill proposes reauthorisation of AGOA with all beneficiaries included for three years until 2028.
The bill will proceed to the Senate for consideration and approval before it is sent to the US President for his approval.
“While South Africa, together with other AGOA-eligible countries, have been advocating for a long-term renewal of AGOA with all countries retained in the programme, the current renewal, while short, provides the necessary relief to companies in the context of the tariffs implemented by the United States,” the Department of Trade, Industry and Competition said in a statement made available to The Bulrushes.
“This will provide certainty and predictability for African and American businesses that rely on the programme.”
The department explained that the renewal of AGOA will complement and support the implementation of the Africa Continental Free Trade Area and creation of regional value chains, as well as support American business that depend on inputs and products imported into the US market under AGOA.
Minister Tau emphasised that South Africa values its longstanding trade and investment relationship with the U.S., “our third-largest export destination in the world”, and a critical partner in driving mutually beneficial economic growth, industrialisation, and job creation.
AGOA has been important in this partnership for over two decades, supporting thousands of jobs in both countries and contributing to stable supply chains across key sectors, notably in automotive, shipbuilding, agriculture, chemicals, and apparel.
Minister Tau further emphasised that South Africa remains committed to a mature engagement regarding matters of mutual concern, ensuring that we are able to reach our shared economic goals.
According to the South African Revenue Services data, SA-US total bilateral trade was $15 billion in 2024, with South Africa’s exports at $8 billion and imports at $7 billion, resulting in a trade surplus of US$1 billion, dominated by South Africa’s exports of commodities.
South Africa’s exports in 2025 (January to September) stood at $5.9 billion. In 2024, SA exports to the U.S. consisted of platinum (25.4%), followed by Articles of precious metals (18.7%) and motor vehicles (16.5%); Diamonds (7.3%); Gold (4.7%).
Under AGOA, the major South African exports were automotives, ferro-alloys, citrus, jewellery, nuts, chemicals, wines, engines & turbines, and ships & boats.
SA, in turn, is the largest sub-Saharan African importer of goods from the U.S.; and the biggest source of foreign direct investment to the US from the African continent, and a crucial supplier of raw materials to many US supply-chains.
The department stated that South Africa and the U.S. continue to engage on an Agreement on Reciprocal Tariffs aimed at promoting mutually beneficial trade and investment relations and addressing trade barriers that affect bilateral trade.
