The United States will remove South Africa and Rwanda from the African Growth and Opportunity Act (AGOA) from January 1st, 2027, ending their duty-free access to the US market under the quarter-century-old trade programme.US Trade Representative Jamieson Greer said President Donald Trump had notified Congress and the two governments of the decision, citing “barriers that undermine American trade and investment” and practices that “pose a threat to US national security and foreign policy interests in the region.” The move follows an annual interagency review of sub-Saharan African countries’ eligibility for the programme.
For South Africa, Washington cited barriers to US trade and investment, corruption, and concerns over US national security and foreign policy interests, while for Rwanda it raised concerns over trade and investment barriers, the rule of law, political pluralism, internationally recognised workers’ rights, human rights, and threats to US national security and foreign policy interests. The US last week sanctioned Rwanda’s defence ministry over its alleged support for the M23 rebel group fighting government forces in mineral-rich eastern Congo.
South Africa is AGOA’s largest beneficiary, exporting about $1.7 billion worth of goods under the programme in 2025, including vehicles and agricultural products, while Rwanda’s exposure is far smaller, with US imports from the country totalling about $44 million last year. Rwanda was previously subject to a partial suspension since 2018 that barred apparel exports under AGOA due to import tariffs on second-hand clothing from the US.
South Africa’s Citrus Growers’ Association called the exclusion “a serious blow” to the industry, warning that jobs and the economies of entire towns were at stake, with the programme providing duty-free access to the US market for South African vehicles, the country’s second-largest export earner to the United States after precious metals. South Africa’s trade ministry expressed regret, noting that the US raised issues not mentioned in earlier negotiations, and said it would support affected industries and seek other export markets.
The decision comes after months of speculation, with South African President Cyril Ramaphosa having said the country must prepare for exclusion by seeking new markets and trade deals with partners like China. South African Trade Minister Parks Tau said the decision “does not define the broader relationship” between the countries, and that South Africa would continue pursuing trade, investment and shared economic opportunities with the US.
AGOA, introduced in 2000 by former US President Bill Clinton, provides eligible sub-Saharan African countries with duty-free access to the US market for more than 1,800 products, including agricultural goods, vehicles and manufactured products, and has been renewed through the end of 2028. The planned termination would not end ordinary trade between the US and the two African countries, but could make affected exports more expensive by removing preferential tariff treatment.
The exclusions affect South Africa and Rwanda individually rather than terminating the wider programme, with country eligibility subject to annual US review and the president required to notify Congress at least 60 days before terminating a country’s benefits. The challenge now is for both countries to navigate the loss of preferential access, with South Africa facing the greater economic impact given its larger export volumes under the programme.
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