The United States has announced that it will exclude South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), a major trade preference program, effective January 1. The decision was made by the US Trade Representative, Jamieson Greer, who cited practices in both countries that are inconsistent with the scheme's eligibility criteria. These practices include barriers that undermine American trade and investment, as well as threats to US national security and foreign policy interests in the region.
South Africa is the largest beneficiary of AGOA, but its eligibility has come under scrutiny as Washington has stepped up criticism of Pretoria. The South African government has rejected allegations of discrimination against white Afrikaners, which have been raised by the US. Trade Minister Parks Tau described the US decision as unfortunate, stating that it was raising issues that had not previously featured in negotiations, despite additional concessions offered by Pretoria.
The exclusion from AGOA will have significant implications for South Africa's economy, particularly for the country's citrus growers. The Citrus Growers' Association of Southern Africa (CGA) has warned that the decision will put jobs and the economies of entire towns at risk. South Africa is the world's second-largest citrus exporter after Spain, and citrus is its largest agricultural export sector by value.
The US president reviews countries' eligibility for AGOA annually, and any removal requires 60 days' notice to Congress and the country concerned. Washington has also been increasing economic pressure on Rwanda over its alleged backing of the armed M23 rebel group in neighboring Democratic Republic of Congo. Last week, the US sanctioned the Rwandan defense ministry over these ties, which the Rwandan government denies.
Rwandan Foreign Minister Olivier Nduhungirehe has stated that his country should not be a scapegoat for events in DR Congo. He emphasized that the situation in DR Congo is mainly a Congolese issue and that Rwanda must not be held responsible for what is happening in Congo forever. The M23 movement has seized swathes of the eastern DRC, which is home to valuable minerals coveted by world powers, since it took up arms again in 2021.
The AGOA program provides duty-free access to the US market for eligible sub-Saharan African countries and has been renewed until the end of 2028. However, it is reviewed annually, and countries must meet certain eligibility criteria to remain part of the program. South Africa's exports to the US under AGOA have declined in recent years, from 28% in 2024 to 10% in 2025.
The South African government has stated that it will support affected industries while stepping up efforts to diversify export markets. Trade Minister Parks Tau emphasized that AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the US. The government has retained measures introduced in response to US reciprocal tariffs and will continue to engage with the US on trade issues.
Key points
- The US has announced it will remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) trade preference program, effective January 1.
- The decision cites practices in both countries inconsistent with AGOA's eligibility criteria, including barriers undermining American trade and investment.
- The exclusion will have significant implications for South Africa's economy, particularly for the country's citrus growers, who risk losing jobs and threatening local economies.
