- President Cyril Ramaphosa said that South Africa must brace for a potential exclusion from the US duty-free trade programme AGOA
- Ramaphosa warned that the impact on jobs would be 'devastating,' with an estimated 250,000 positions linked to the initiative
- The announcement sparked varied reactions on social media, with some people supporting the statement and others criticising it
Source: Getty Images
Byron Pillay, a Briefly News journalist, has spent a decade reporting on South Africa's political landscape, crime, and social issues. He worked as a newspaper journalist for 10 years before transitioning to online journalism.
GAUTENG — President Cyril Ramaphosa has publicly acknowledged that South Africa may lose access to the African Growth and Opportunity Act (AGOA), warning that the country must begin preparing for that outcome.
Ramaphosa made the remarks during a briefing with editors and journalists in Johannesburg. He said it remained unclear whether South Africa would retain its place in the US duty-free trade programme, adding that his administration was in active discussions with American counterparts.
AGOA grants duty-free access to the US market for thousands of South African products. South Africa is the largest beneficiary of the programme, with an estimated 250,000 jobs tied to it, primarily in the automotive, agricultural, and apparel sectors.
Although Congress extended the legislation until the end of 2028, the White House determines annually which countries qualify for the programme.
Ramaphosa discusses potential job losses
Ramaphosa described the potential job losses as "devastating," underscoring the scale of the economic risk facing the country.
Tensions between Pretoria and Washington have sharpened under the Trump administration, and some US officials have openly suggested that South Africa should be removed from the programme during its annual eligibility review. The current diplomatic crisis has deepened over the past 20 months after the Trump administration presented five demands to the South African government.
"I need, as president, to prepare us if it ever happens," Ramaphosa said.
In response to the uncertainty, Ramaphosa said he and Deputy President Paul Mashatile have been travelling internationally to develop alternative trade relationships.
He pointed to a recently concluded agreement with China as one concrete outcome of those efforts. China introduced a zero-tariff scheme for qualifying South African goods in May, a development Ramaphosa cited as a positive step in diversifying the country's export markets.
How did South Africans take the news?
South Africans reacted sharply on social media following the announcement.
@FickWillem said:
"Did he also tell them that he and his ANC lackeys are the ones responsible for this?"
@Eircans wrote:
"I'm bothered by this statement. This GNU administration is not ready to save jobs."
@manuel687690 commented:
"Once again, there's going to be huge repercussions for the ordinary workers in this country. Why must SA always be the experiment?"
Others, however, took a more measured view.
@zukofipaza said:
"Problems give birth to new solutions. We were born without AGOA."
@Olebo_Dip added:
"The fewer agreements we have with the USA, the more we become a sovereign state."
Solidarity calls for an urgent US-SA trade deal
Briefly News reported that Solidarity has urged the South African government to conclude a trade deal with the United States urgently.
Fruit Products Western Cape in Tulbagh faces possible closure after Premier Foods flagged US tariffs and shrinking global demand as threats.
South Africans weighed in on Solidarity's calls, with some noting that the trade union previously lobbied for US sanctions.
Source: Briefly News