
US to drop South Africa, Rwanda from duty-free trade initiative
The United States plans to remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) trade preference program starting January 2027, according to US Trade Representative Jamieson Greer.
The program, which has provided duty-free access to the US market for over 1,800 products from sub-Saharan African countries for 26 years, comes under regular review. AGOA was extended in February by Trump but will now exclude South Africa and Rwanda starting next year.
Trade and security concerns
Greer stated that the governments of Rwanda and South Africa are engaging in practices inconsistent with AGOA's eligibility criteria, including 'barriers that undermine American trade and investment and practices that pose a threat to US national security and foreign policy interests in the region.' The statement did not provide specific examples of these issues.
the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA's eligibility criteria.
South Africa's economic impact
South Africa has been AGOA's largest beneficiary, with $1.7 billion worth of goods like car parts, citrus fruit and wine exported to the US under the program in 2025. South Africa's Trade Ministry has indicated it was prepared for the decision, noting AGOA exports comprise only about 10% of its total exports to the US and 1% of its total global exports.
President Cyril Ramaphosa has stated South Africa must prepare for exclusion by seeking new markets with partners like China. The South African government emphasized that while AGOA remains important, it does not constitute the entirety of the economic relationship between the two nations.
Rwanda's M23 ties
Rwanda faces removal from AGOA due to US allegations of supporting the M23 rebel group in the Democratic Republic of Congo. Washington recently sanctioned Rwanda's Defense Ministry, which denies any ties to M23, along with several individuals, institutions and a gold refinery. Major Rwandan exports to the US include coffee and minerals.