U.S. President Donald Trump has signed legislation extending the African Growth and Opportunity Act (AGOA) for one year, retroactive to September 2025, providing duty-free access to the U.S. market for eligible African countries including South Africa. The move offers temporary relief amid strained U.S.-South Africa relations and ongoing tariff disputes. Business leaders in South Africa welcomed the extension for restoring some confidence in bilateral trade.
On February 3, 2026, U.S. President Donald Trump signed a law reauthorizing the African Growth and Opportunity Act (AGOA) through December 31, 2026, effective retroactively from September 30, 2025, according to U.S. Trade Representative Jamieson Greer. Originally enacted in 2000, AGOA grants duty-free access to the U.S. market for over 1,800 products from eligible sub-Saharan African countries, supporting jobs across the continent.
The extension followed congressional action where the House initially approved a three-year renewal last month, but the Senate shortened it to one year, which the House accepted. Greer stated that his office would collaborate with Congress to modernize the program this year, enhancing market access for U.S. businesses and aligning it with Trump's America First trade policy. To qualify, countries must demonstrate progress in areas like market-based economies, rule of law, and anti-corruption measures.
For South Africa, Africa's largest economy and a major AGOA beneficiary in sectors such as automotive, manufacturing, agriculture, and wine, the extension provides stability. South African Trade Minister Parks Tau noted it would offer 'certainty and predictability for African and American businesses.' However, it comes amid tensions: Trump boycotted South Africa's G20 presidency last year and excluded it from U.S.-hosted meetings this year.
Reciprocal tariffs imposed by Trump in August 2025 continue to challenge AGOA benefits, though their legality is under Supreme Court review after lower courts deemed them illegal. The U.S. chapter of the South African Chamber of Commerce, led by President Neil Diamond, praised the decision: 'This removes a lot of uncertainty... restoring some business confidence.' Diamond highlighted relief for key sectors, though full implementation depends on negotiations between Greer and South Africa's Department of Trade and Industry.
The extension averts immediate risks to African exports but underscores the need for broader trade reforms.
