South Africa: Ramaphosa warns of devastating impact if US trade deal is lost

South African President Cyril Ramaphosa has urged the country to prepare for the possibility of losing preferential access to the United States market under a key African trade programme, as relations between the two countries continue to deteriorate.

The African Growth and Opportunity Act, or AGOA, which allows eligible African countries to export certain goods to the US duty-free, has been renewed by Congress until the end of 2028. The extension now awaits President Donald Trump’s signature.

South Africa is the programme’s largest beneficiary, but its eligibility has come under scrutiny from Washington.

Ramaphosa says the country must prepare for exclusion, while seeking alternative markets to cushion the impact. He warned the consequences would be “devastating”, but urged South Africans not to panic.

The stakes are high for the automotive industry. South African vehicles benefit from duty-free access to the US, and industry estimates indicate around 86-thousand jobs at car manufacturers are directly linked to the agreement, rising to 125-thousand when subcontractors are included.

Any exclusion taking effect from January first would need to be announced by November second.