The United States has announced plans to remove South Africa and Rwanda from its African Growth and Opportunity Act (AGOA) trade programme, effective January 1, 2027. President Donald Trump notified Congress of his intention to terminate the two countries’ eligibility under the programme. The decision follows a series of actions by the Trump administration aimed at reshaping US economic engagement with Africa.
The AGOA programme allows qualifying African countries to export goods to the US without paying tariffs. South Africa and Rwanda have benefited from this arrangement for years. The termination of their eligibility will end duty-free access for these countries, potentially impacting their export sectors. Experts warn that the loss of AGOA benefits could affect South Africa’s manufacturing and agricultural industries.
The move is part of broader changes in US foreign policy under the Trump administration. The administration has criticized South Africa for alleged persecution of white South Africans and has taken steps to distance itself from African nations it views as non-compliant. Rwanda, which has also faced scrutiny over human rights issues, is similarly affected. The decision has raised concerns among business leaders in both countries.
AGOA has been a cornerstone of US economic relations with Africa since its inception in 2000. It has facilitated trade and investment, particularly in sectors such as textiles, agriculture, and manufacturing. The termination of the programme for South Africa and Rwanda marks a significant shift in US-African trade policy. The impact of this change will depend on how quickly alternative trade agreements can be negotiated and how affected industries adapt to the new economic landscape.
