Ramaphosa Pleads for AGOA Renewal Amid Looming Job Losses

South Africa Warns of Economic Fallout if Trade Agreement Expires

President Cyril Ramaphosa has issued a heartfelt plea to the United States, urging the renewal of the African Growth and Opportunity Act (AGOA), warning that its expiration later this month could jeopardize South Africa’s economy and undo decades of trade progress.

Speaking at the South Africa, US Trade and Investment Dialogue on the sidelines of the UN General Assembly, Ramaphosa emphasized the importance of predictable, preferential access to the US market.

“AGOA has been the foundation of US–Africa trade for nearly a quarter of a century,” he said. “In South Africa, it supports jobs from auto assembly plants to farms to high-tech manufacturing hubs. Its expiry would not only undermine those gains, but also remove the link to the Generalised System of Preferences, which is critical for many of our exporters.”

Trade Ties and Shared Responsibility

Ramaphosa underscored the mutual benefits of US–South Africa trade, noting that tariffs and trade tensions affect communities and industries in both countries.

“We do not take this relationship for granted,” he said. “We value the trust that American companies place in South Africa, and we are committed to ensuring that this partnership continues to grow.”

With the US being one of South Africa’s largest trading partners outside the continent, Ramaphosa highlighted the scale of investment: over 600 American companies operate successfully in South Africa, spanning aerospace, mining, energy, consumer goods, and finance.

South African firms have also made inroads into the US market, from chemicals and financial services to mining, hospitality, and food products, demonstrating the nation’s entrepreneurial spirit and global competitiveness.

Looking to Africa’s Rising Market

Ramaphosa positioned South Africa as a gateway to the 1.4-billion-strong African market, leveraging the African Continental Free Trade Area (AfCFTA). He called for investment in sectors including green energy, agriculture, pharmaceuticals, digital innovation, and advanced manufacturing.

“Africa is rising. South Africa has the infrastructure, financial systems, and regional linkages to serve as a platform for US companies expanding into the continent,” he said.

He emphasized opportunities in renewable energy, green hydrogen, digital infrastructure, and pharmaceuticals, noting the potential to strengthen global supply chains and drive economic growth across Africa.

New Forum to Strengthen Cooperation

To cement bilateral engagement, Ramaphosa announced the establishment of a South Africa–US Trade and Investment Forum, with its first session set to take place next year alongside the South Africa Investment Conference.

“This initiative will provide structure and continuity to our partnership, ensuring that our engagement is strategic, sustainable, and beneficial to both countries,” he said.

Future-Focused Partnership

Closing his address, Ramaphosa stressed that the partnership should not only be about trade volumes but shared values and resilience.

“This engagement is about building a partnership that looks to the future, that is adaptable to challenges, and that positions South Africa as both a reliable production hub and a launchpad into Africa,” he concluded.

Public and Business Reaction

Social media and business analysts reacted strongly, with many applauding Ramaphosa’s call for urgency in protecting jobs and preserving US–Africa trade relations. Local industry leaders stressed that the expiration of AGOA could directly impact auto manufacturing, agriculture exports, and tech startups, affecting thousands of workers and communities across South Africa.

Observers also highlighted the opportunity for American companies to tap into Africa’s emerging market through South Africa, viewing the Forum as a critical mechanism to streamline investment and trade engagement.

{Source: IOL}

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