This follows a one-year extension that came into law in February 2026.
Picture: iStock
South African exporters could get another two years of preferential access to the US market after the US Senate moved to extend the African Growth and Opportunity Act (Agoa) through to December 2028. This follows a one-year extension that came into effect in February 2026.
The proposed extension would also preserve key apparel provisions giving businesses greater certainty over access to the lucrative US market.
Agoa has not yet been legally extended; the bill still requires concurrence from the House of Representatives and the signature of US President Donald Trump to become law. However, the news that the US Senate voted to approve the extension has been welcomed by different organisations.
Agoa to offer relief to SA exporters
Agoa is a US trade programme that gives eligible sub-Saharan African countries preferential, largely duty-free access to the US market for qualifying products, aiming to boost trade, investment and economic growth.
The participating countries include South Africa, Nigeria, Kenya, Ghana, Angola, Botswana, Eswatini, Lesotho and Namibia, among others.
The Bill extends the Regional Apparel Article Programme through to December 2028. For South Africa, that means clothing and textile businesses that qualify under the relevant Agoa rules would continue to have access to those preferences.
Agoa possible extension welcomed
Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa (Agbiz), said the extension would benefit the agriculture sector. The country exports various fresh produce to the US such as citrus fruits, berries, avocados and nuts.
“For South Africa’s farming sector, the American market is important, accounting for just over half a billion dollars in exports a year, which is about 4% of total agricultural exports of about $15.1 billion,” said Sihlobo.
“The figure may seem relatively small, and others have even argued that South African farmers must focus on China. But the US market remains critical for farmers and agribusinesses in certain value chains, particularly raisins, table grapes, citrus, nuts and wine, among other products.”
Focus on exporting to China?
He added that his “desire to expand access to China, and support it, especially under the zero-tariff access provisions of the China-Africa Partnership Agreement for Shared Prosperity, is understandable”.
In the same breath, Sihlono said South Africa must view the Chinese market as an addition to the group of countries that offer access to the country’s markets, not a substitute for others. He added this is the posture the South African farming sector and organised agriculture have maintained and he thinks it’s an important approach to trade dynamics in the current geopolitical context.
“South Africans do not enjoy the luxury of choosing sides. Other stakeholders have also questioned the benefit of Agoa in an environment where the U S government has imposed tariffs on a range of goods from South Africa and other trading partners. This, again, is another important matter, but we all must realise that the benefits remain quite tangible.”
Danger without trade agreement with US
Sihlobo, highlighting the importance of the trade agreement with the US, said that without Agoa, South African products exported to the US would typically face an additional tariff of around 3% (depending on the product) on top of the new tariffs, which are at 12.5%, bringing the total to around 15.5%.
This would have placed South African agricultural products at a disadvantage compared to competitors in the American market, such as Chile and Peru. He noted that, because of the Agoa benefit, South Africa is now on an equal footing with these countries in the US market, at 125%.
“I must also say, though, that the US has decided to modify its tariffs and exempt some food products, thus easing agricultural trade friction, which is costly to both exporting countries and US consumers.
“The exempted products include coffee and tea, fruit juices, cocoa, and spices, as well as avocados, bananas, coconuts, guavas, limes, oranges, mangoes, plantains, pineapples, various peppers and tomatoes, beef and additional fertilisers.
“From a South African perspective, oranges, macadamia nuts and fruit juices benefit from the exemption. The rest of South Africa’s agricultural products currently face a 12.5% import tariff in the US market.”
Liberation Day tariffs’ impact
“To remind us again of the agricultural economic value of this discussion, in 2025, South Africa’s agricultural exports to the US totalled $504 million, down 3% from the previous year,” said Sihlobo.
“This slight annual decline doesn’t suggest that the previous 30% ‘Liberation Day’ tariffs didn’t hurt the South African agricultural sector; South Africa benefited from substantial exports in the second quarter of 2025, when there was a 90-day pause and we have plenty of citrus products to export.
“Ultimately, Agoa is not the end of the road and I believe the South African policymakers have previously made that point clear. The idea is to have a formal trade agreement with the US after these uncertain times.
“But for now, a likely renewal of Agoa, with South Africa’s continued inclusion, is a positive step for agriculture to continue to compete on the same level as other key agricultural exporters to the US market.”
Automotive sector to get boost
The Motor Industry Staff Association (Misa) also welcomed the news of the extension’s approval by the US Senate, saying the move is encouraging for “South African exporters and the many workers whose livelihoods depend on healthy trade”.
“This is good news for workers and the South African economy. Trade that flows freely means jobs are secure. Every vehicle and every component that leaves our shores supports a chain of employment that reaches right into our dealerships and workshops,” said Martlé Keyter, Misa CEO: operations.
While much of the attention has focused on agriculture and vehicle manufacturing, Misa emphasises that the benefits extend deep into the retail motor sector.
Keyter said that strong automotive exports sustain demand across the entire value chain, supporting jobs in dealerships, workshops, parts distribution and related services that employ hundreds of thousands of South Africans.
“When our exporters can trade with confidence, the whole industry benefits and so do the workers and families who depend on it.”
