(3 Minutes Read)
South African President Cyril Ramaphosa has made a strong appeal to the United States government to extend the African Growth and Opportunity Act (AGOA), warning that allowing the trade agreement to lapse could severely impact employment and long-standing trade partnerships between the two nations.
Speaking at the South Africa–US Trade and Investment Dialogue held in New York alongside the United Nations General Assembly, President Ramaphosa emphasized that AGOA has been central to trade relations between the U.S. and Africa for almost 25 years. He noted that the act has been instrumental in promoting economic development by providing African countries, including South Africa, with preferential access to U.S. markets.
“In South Africa alone, AGOA has been a vital catalyst for job creation across multiple sectors,” Ramaphosa stated. “From automotive assembly lines and agricultural exports to high-tech manufacturing, countless livelihoods depend on the continued benefits of this agreement. Its expiration would not only reverse years of progress but would also sever key connections to broader trade frameworks such as the Generalized System of Preferences.”
Calling for continued “predictable and preferential market access,” the President underscored that trade relations must be mutually beneficial. He argued that the imposition of tariffs or the loss of trade privileges would have repercussions for both sides, potentially disrupting industries and communities in both South Africa and the United States.
The U.S. currently stands as one of South Africa’s most significant non-African trading partners and a major source of foreign direct investment (FDI). More than 600 American firms operate within South Africa’s borders, spanning diverse industries including aerospace, mining, finance, and consumer products. These companies employ thousands of South Africans and contribute significantly to the country’s economy.
Ramaphosa also highlighted the reciprocal nature of the relationship, noting that South African companies are actively involved in the U.S. market as well. These firms, he said, represent South Africa’s innovative and competitive business landscape and act as informal ambassadors of the country’s global economic ambitions.
Looking ahead, President Ramaphosa promoted South Africa’s strategic position as a gateway to the broader African market — a continent with a combined population of 1.4 billion people and immense growth potential under the African Continental Free Trade Area (AfCFTA). He identified key sectors poised for U.S. investment, including renewable energy, pharmaceuticals, digital technologies, and advanced manufacturing.
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As part of efforts to strengthen economic ties, Ramaphosa announced the establishment of a new South Africa–US Trade and Investment Forum, which will convene next year alongside South Africa’s annual Investment Conference. “This forum will not only help shape future cooperation,” he explained, “but will also ensure that our economic relationship remains resilient, forward-looking, and responsive to global challenges.”
In closing, President Ramaphosa framed his message as a call to deepen an already fruitful partnership. “We are not just preserving the status quo,” he said. “We are building a modern, dynamic, and enduring trade relationship that can meet the demands of a rapidly evolving world.”
