President Cyril Ramaphosa stated that South Africa has started diversifying its markets due to uncertainty around US tariffs, with several companies expanding trade relationships beyond the American market. He expressed hope for stronger bilateral trade relations with the US. Ramaphosa made these comments after casting his vote in the local government elections in Johannesburg. The President described South Africa's exclusion from Agoa as a setback but noted that several other African countries have also experienced exclusion.
Ramaphosa emphasized that diversification has become a priority for South Africa, with many companies already dealing with other countries. He highlighted that Agoa is a unilateral trade arrangement that the US decides on, and South Africa must adapt to this new reality. The President also pointed out that the country's exclusion from Agoa does not affect its overall trade relations with the US, as they continue to exchange a range of products outside the preferential trade program.
The US had given South Africa 60 days' notice of its intention to withdraw the country's Agoa benefits, effective from January 1, 2027. According to the department of trade, industry and competition, Agoa exports were valued at about $1.7 billion in 2025, down from $4 billion in 2024. This represents about 1% of South Africa's total global exports. The government has confirmed that it will accelerate efforts to diversify export markets.
Ramaphosa expressed a preference for a bilateral trade agreement with the US, where both parties can negotiate trade rules and mechanisms that respect each other's sovereignty. He believes that such an agreement would allow for a more balanced and mutually beneficial trade relationship. The President also highlighted the potential for cooperation between South Africa and the US in various sectors.
The department of trade, industry and competition has been working to identify alternative markets for South African exports. Ramaphosa mentioned that the African Continental Free Trade Area, India, the EU, the UK, and China are potential markets for diversification. He stressed that South Africa's trade relations with the US will continue, and the government hopes to strengthen them through bilateral deals.
Ramaphosa's comments come as South Africa participates in the 2026 Local Government Elections. He cast his vote at Hyde Park High School in Johannesburg, accompanied by First Lady Dr. Tshepo Motsepe. The President reflected on his personal connection to Soweto, where he grew up, and emphasized the importance of voting in local government elections.
The South African government is committed to strengthening its trade relationships with other countries and diversifying its export markets. Key initiatives include exploring opportunities in the African Continental Free Trade Area and engaging with other major economies such as India, the EU, the UK, and China.
Key points
- South Africa is accelerating efforts to diversify its trade relations with other countries after being excluded from Agoa by the US.
- The country is exploring alternative markets, including the African Continental Free Trade Area, India, the EU, the UK, and China.
- President Ramaphosa hopes for stronger bilateral trade relations with the US through a negotiated agreement.
