South African exporters have been given a two-year reprieve after the United States extended the African Growth and Opportunity Act (AGOA) until the end of 2028.
The extension provides greater certainty for businesses selling qualifying products into the US market, after months of uncertainty over whether South Africa would remain part of the preferential trade programme.
US President Donald Trump has signed the legislation into law after it cleared Congress, extending AGOA without major policy changes.
For South African businesses, the extension is particularly significant because AGOA provides eligible exports with preferential, including duty-free, access to the US market. Sectors such as automotive manufacturing and agriculture stand to benefit from continued access.
The US remains an important trading partner for South Africa. US goods trade with South Africa reached an estimated $22.7 billion in 2025, with American imports from South Africa totalling about $16.5 billion.
However, the extension does not remove the longer-term uncertainty surrounding South Africa’s position in the programme.
Relations between Pretoria and Washington have been strained, while some US lawmakers have previously pushed for South Africa to be excluded from AGOA.
For South African companies, the extension therefore offers valuable breathing room to maintain market access, secure orders and plan investment through 2028.
It also gives the South African government and business community additional time to engage Washington on the future of the trade relationship and push for a longer-term arrangement that supports exports, investment and jobs.
The US decision comes as Washington seeks to deepen economic ties with Africa and compete with China for access to the continent’s markets, critical minerals and supply chains.
For South Africa, the immediate message for exporters is one of relief — but the bigger challenge will be securing certainty beyond 2028.
