The South African Chamber of Commerce in the USA (SACCUSA) has warned that South Africa faces a real risk of losing its AGOA trade benefits. The group urged the government to treat the matter as an urgent economic priority.
For the United States to remove South Africa from the duty-free programme from 1 January 2027, it must announce the decision by Monday 2 November. Any removal needs 60 days’ notice, Cape Town Etc reported.
“We are facing a $16 billion question,” SACCUSA president Neil Diamond said in a statement.
The African Growth and Opportunity Act lets qualifying African countries sell thousands of products to America without paying import duties. About 22 percent of South Africa’s exports to America benefit from it.
President Donald Trump signed an extension on 2 September 2026 that keeps AGOA running until 31 December 2028, according to BusinessTech. However, the American president reviews each country’s eligibility every year. The US trade representative’s office opened its 2027 review in June.
US trade representative Jamieson Greer has already called South Africa a “unique problem”, Cape Town Etc reported.
President Cyril Ramaphosa told editors in Johannesburg on Monday 19 October that it was still unclear whether South Africa would stay in the programme. He said talks with American officials were continuing.
“I need, as president, to prepare us if it ever happens,” Ramaphosa said. He described the possible impact on jobs as “devastating”.
Estimates of the jobs linked to AGOA differ. Briefly News put the figure at about 250 000, mostly in the motor, farming and clothing sectors. Other estimates reach half a million.
Carmakers alone account for around 86 000 direct jobs, rising to 125 000 with subcontractors, according to Africanews.
The Western Cape has a lot at stake. Between 2018 and 2022, the province supplied 49 percent of South Africa’s farm exports to America by value, according to National Agricultural Marketing Council figures.
Terry Gale, chief executive of Exporters Western Cape, wrote an open letter to Ramaphosa on 22 October. He said the province’s exports to America fell 41 percent over the latest 12 months, from R16.89 billion to R10.02 billion.
Citrus exports dropped 17 percent, wine 38 percent and fruit juice 86 percent, according to FreshPlaza. Trade with America supports 11 914 direct jobs and 35 467 indirect jobs in the province.
SACCUSA said the Presidency, the Department of Trade, Industry and Competition and the Department of International Relations and Cooperation should work from one plan.
The chamber asked the government to seek clarity from Washington on its concerns and to table a fair trade proposal. It also called for business to be involved, for talks with the US Congress and for a backup plan for exporters.
“Hope is not a trade strategy,” Diamond said.
The chamber said two-way trade in goods and services between the countries reached about $28.8 billion in 2025, up 10.1 percent. South Africa sold about $16.5 billion of goods to America, while America sold about $6.3 billion back.
“The economic relationship between our countries is too important to place at unnecessary risk,” Diamond said.
Washington has not commented publicly. The chamber said South Africa was still listed as eligible on 26 October. If no announcement is made by 2 November, South Africa will keep its benefits from 1 January 2027.
Source: this article is based on reporting by Cape Town ETC. Image: Cape Town ETC. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.