International Politics

NEW YORK - President Cyril Ramaphosa has urged the United States to renew the African Growth and Opportunity Act (AGOA), warning that its expiry later this month would seriously damage South Africa’s economy and undermine decades of progress in US–Africa trade.

Speaking at the South Africa–US Trade and Investment Dialogue in New York on the sidelines of the UN General Assembly, Ramaphosa said: “AGOA has been the foundation of US–Africa trade for nearly a quarter of a century. In South Africa, it has supported 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 has been so critical to many of our exporters.

“For this reason, I appeal for your support in advocating for its renewal. Predictable, preferential access to the US market is vital not only to South Africa, but to American companies who depend on reliable imports,” said Ramaphosa.

He said South Africa values its relationship with Washington, but stressed that recent trade tensions must be resolved.

“We do not take this relationship for granted. We value the trust that American companies place in South Africa and we are committed to ensuring that this partnership continues to grow. The reality is that tariffs do not only affect one side. They ripple across industries and communities in both our countries.”

The United States remains one of South Africa’s largest trading partners outside Africa and Ramaphosa highlighted the scale of American investment.

“The US is a top source of foreign direct investment in South Africa, supporting hundreds of thousands of direct and indirect jobs in our economy. More than 600 US companies are already invested and operating successfully in South Africa. They are invested in areas as diverse as aerospace, mining and energy, consumer goods and finance,” said Ramaphosa.

He also pointed to South African businesses operating in the US.

“South Africa is equally proud that some of our own companies have established a footprint in the US, from chemicals and financial services to mining, hospitality and food products. These firms are ambassadors of our entrepreneurial spirit, our innovation and our global competitiveness.”

South African President Cyril Ramaphosa. (Pic: SAPeople)