Zuko Komisa
- The US House has approved a three-year extension of the African Growth and Opportunity Act (AGOA) through to 2028, restoring duty-free access for South African exporters after the programme lapsed last September.
- Despite this legislative progress, South Africa’s future eligibility remains under threat as US senators scrutinise Pretoria’s foreign policy ties with Russia and China.
- International Trade Administration Commission Chief Ayabonga Cawe warns that while the extension offers short-term relief, the government must actively manage trade tensions to protect thousands of industrial and agricultural jobs.
The US House of Representatives has approved a three-year extension of the African Growth and Opportunity Act (AGOA).
This legislative move provides a vital window of relief and renewed certainty for South African businesses that rely on duty free access to the American market, helping to protect existing investments and industrial output.
However, the outlook remains clouded as the bill transitions to the US Senate.
South Africa’s continued participation in the programme is under significant pressure due to heightened diplomatic and political scrutiny from Washington.
Lawmakers in the United States have increasingly questione SA’s eligibility based on its current foreign policy positions.
Kaya Biz with Gugulethu Mfuphi spoke to Ayabonga Cawe, Chief Commissioner of the International Trade Administration Commission, who has highlighted that while the extension secures immediate trade volumes and jobs, the geopolitical friction is a growing concern.
He noted that the South African government is currently focused on managing these tensions to preserve its relationship with one of its most essential global economic partners.
Listen to the full conversation here:
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