South Africa and Rwanda will be removed from the U.S. trade program that provides duty-free access to the U.S. market for thousands of products from Sub-Saharan African countries. U.S. Trade Representative Jameson Greer announced on Monday that President Donald Trump intends to remove these two countries from the "African Growth and Opportunity Act" (AGOA) starting January 2027.
Reason for Removing African Countries
In a statement, Greer said that "the governments of Rwanda and South Africa are taking actions that are inconsistent with AGOA eligibility criteria." These actions include "barriers that undermine U.S. trade and investment and actions that pose a threat to U.S. national security and foreign policy interests in the region." However, the statement did not reference any specific examples of trade barriers or security and foreign policy issues.
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Impact on South Africa's Economy
The AGOA program was introduced in 2000 by former U.S. President Bill Clinton and has become the focal point of U.S. economic interactions with Sub-Saharan Africa. Duty-free access to the U.S. market is considered a vital economic driver for over 30 AGOA countries. In 2025, South Africa was the largest beneficiary of AGOA, exporting goods worth $1.7 billion, including auto parts, citrus fruits, and wine, to the U.S.
The South African Department of Trade announced last week that it is prepared for this decision, noting that exports under AGOA account for only about 10% of its total exports to the U.S. and 1% of its total global exports. The department stated, "AGOA remains important for South Africa, but it does not constitute the entirety of the economic relationship between South Africa and the United States."
In recent weeks, President Cyril Ramaphosa has also stated that South Africa should prepare for the possibility of being removed from AGOA and seek new markets and trade agreements with partners like China.
The South African government announced on Monday that the U.S. remains an important trading partner and will provide support for affected sectors. The country's citrus industry has also warned that its entire value chain "is currently under threat from both sides of the Atlantic" and stated that jobs and the economic security of entire communities are at risk.
The U.S. has also exerted economic pressure on Rwanda due to allegations of its support for the M23 rebel group in the Democratic Republic of Congo. Last week, Washington sanctioned Rwanda's Ministry of Defense, which has denied any connection to M23.
Rwanda's major exports to the U.S. include coffee and minerals.
