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US Removes South Africa and Rwanda From AGOA Trade Program
Confirmed
In Short: The United States has removed South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) trade program, citing inconsistent practices with the program's eligibility criteria.
The United States announced on Monday that it would remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) trade program, effective January 1, 2027. The AGOA provides eligible sub-Saharan African countries preferential access to the US market.
US Trade Representative Jamieson Greer notified Congress that South Africa and Rwanda would be suspended from the AGOA, citing concerns about human rights, corruption, and threats to US interests.
South Africa, the largest beneficiary of the AGOA, exported approximately $1.7 billion worth of goods to the US under the program in 2025, accounting for about 10 percent of its total exports to the US and 1 percent of its global exports.
The AGOA has been a cornerstone of US economic engagement with Africa since its enactment in 2000, offering duty-free access to the US market for more than 30 eligible African countries and covering over 1,800 specific products.
South Africa's Trade Minister Parks Tau said the exclusion was 'unfortunate,' noting that Washington was raising issues that had not previously featured in negotiations despite additional concessions offered by Pretoria.
The Citrus Growers' Association of Southern Africa (CGA) called the exclusion 'a serious blow' to the industry, warning that jobs and the economies of entire towns were at stake.
Rwandan Foreign Minister Olivier Nduhungirehe told AFP that his country should not be a 'scapegoat' for events in the Democratic Republic of Congo (DRC). He added, 'Rwanda must not be held as a scapegoat for what is happening in Congo forever.'
US Ambassador to South Africa Leo Brent Bozell III said the decision was regrettable, while the US administration stated that both countries were engaging in practices inconsistent with the program’s eligibility rules.
The AGOA has been renewed until the end of 2028 but is reviewed annually. South Africa's Department of Trade, Industry and Competition said the country was pursuing market opportunities across the African Continental Free Trade Area, India, SADC, the European Union, the United Kingdom, ASEAN, MERCOSUR, and China.
'Ten percent is not a trivial number, but it's not 90%, it's not 60%,' noted a Devdiscourse source, emphasizing that while AGOA was important, it did not constitute the totality of the economic relationship between South Africa and the US.
Separately, NVIDIA announced that its Board of Directors has authorized an additional $150 billion under the company’s existing share repurchase program, increasing the total remaining amount authorized to $235 billion. The company expects to execute the total remaining program through fiscal year 2028.
What this adds
The AGOA's impact on South Africa's economy is significant but not overwhelming, as AGOA exports represent only a small portion of South Africa's total global exports.
The decision to remove South Africa and Rwanda from the AGOA program highlights the ongoing tensions between the US and these countries over human rights and governance issues.
What's confirmed
- The United States said on Monday it would remove South Africa and Rwanda from a major Africa-US trade preference programme, citing practices it said were "inconsistent" with the scheme's eligibility criteria.
- "AGOA remains important to South Africa, but it does not constitute the totality of the economic relationship between South Africa and the United States," he said.
- South Africa has been the largest beneficiary of the US program, exporting about $1.7 billion worth of goods to the US under AGOA in 2025.
- "This was a predictable and preventable outcome resulting from the rejection by South Africa's government of real concerns raised by the US Government."
- South Africa is the program's largest beneficiary but its eligibility has come under scrutiny as Washington steps up criticism of Pretoria, including false allegations of discrimination against white Afrikaners that South Africa rejects.
- The African Growth and Opportunity Act (Agoa) allows eligible African countries to export thousands of products to the US duty-free, BBC reported.
- US Trade Representative Jamieson Greer said on Monday that President Donald Trump intends to terminate the two countries' participation in the program starting in January 2027, according to a DW report.
- Pretoria – The Department of Trade, Industry and Competition says South Africa is pursuing market opportunities across the African Continental Free Trade Area, India, SADC, the European Union, the United Kingdom, ASEAN, MERCOSUR and China.
- The department’s comments came soon after the United States Government gave South Africa 60 days’ notice that it was withdrawing South Africa’s benefits under the African Growth and Opportunity Act (AGOA).
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- "The situation in the DRC, the political situation, the security situation, is mainly a Congolese issue," Nduhungirehe told AFP on the sidelines of a Russia-Africa summit in Moscow before the US sanctions were imposed.
- The announcement comes amid strained relations between Washington and both countries, with the proposed termination threatening their access to preferential trade arrangements with the US.
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