The United States has extended the African Growth and Opportunity Act (AGOA) by two years, preserving preferential access to the US market through 31 December 2028. US President Donald Trump signed the legislation into law after both chambers of Congress approved the extension.
For South Africa, the extension provides additional certainty for exporters in industries that rely on preferential access to the US market. However, it does not completely remove the uncertainty surrounding South Africa’s continued participation in AGOA.
What the AGOA extension means for South Africa
AGOA provides eligible sub-Saharan African countries with duty-free access to the US market for more than 1,800 products, alongside products covered by other US trade preference arrangements.
The programme was originally established in 2000 to promote economic development in Africa by expanding trade between African countries and the United States.
The latest legislation changes AGOA’s expiry date to 31 December 2028. The extension effectively gives exporters another two years of preferential access compared with the previous end date of December 2026.
South Africa’s Cabinet welcomed the extension, saying it maintains preferential access for eligible South African products and provides certainty for local producers and exporters. Government said this could support market diversification, exports and deeper trade and investment ties between South Africa and the US.
South Africa’s AGOA eligibility remains a concern
While the extension protects the programme through 2028, South Africa’s position within AGOA remains an important issue.
South Africa has faced pressure from some US lawmakers to be removed from the programme. Two bills introduced in the US Senate and House of Representatives in 2025 called for South Africa to be excluded, although neither had gained significant traction at the time of the latest extension.
The legislation extending AGOA therefore does not mean that South Africa’s participation is guaranteed for the entire two-year period.
The list of eligible countries can still be reviewed and changed before January 2027.
That creates a second layer of uncertainty for South African businesses. While the programme itself now has a longer legal lifespan, exporters still need to watch developments in Washington closely.
Why AGOA matters to South African exporters
The stakes are significant for industries that depend on access to the US market.
According to figures cited by Solidarity, approximately 22% of South African exports to the US benefit from AGOA, with billions of rand in trade linked to the programme. The union has estimated that around 500,000 South African jobs depend on AGOA.
The automotive and agricultural industries are particularly exposed to any deterioration in preferential market access.
For manufacturers and agricultural producers, tariff-free access can influence the competitiveness of South African products against goods from other countries. Losing those preferences could increase the cost of exports into the US and potentially reduce demand.
The extension therefore gives companies additional time to plan production, investment and export strategies.
The extension follows months of uncertainty
AGOA originally lapsed at the end of September 2025. US legislation subsequently restored the programme retroactively and extended it through December 2026.
The latest extension now pushes the expiry date out to December 2028.
The US Trade Representative had previously indicated that the Trump administration wanted to modernise AGOA and align the programme more closely with its trade priorities.
In February 2026, US Trade Representative Jamieson Greer said the programme should demand more from US trading partners while generating greater market access for American businesses, farmers and ranchers.
That suggests the debate around the future structure of AGOA is unlikely to end with the latest extension.
What businesses should watch next
The immediate benefit for exporters is greater certainty. Companies can now plan around preferential access to the US market through the end of 2028, subject to continued eligibility.
However, South African businesses should pay close attention to any review of the country’s eligibility before 2027, as well as broader US-South Africa trade negotiations.
The South African government has already indicated that it sees AGOA as important for expanding exports and strengthening economic ties with the United States.
For exporters, the next two years could therefore be less about simply maintaining existing trade flows and more about using the additional certainty to expand market share, diversify customers and strengthen their position in the US market.
The longer-term question is what replaces AGOA after 2028. The two-year extension buys African exporters time, but it does not settle the future of the US-Africa trade relationship.
What is AGOA?
AGOA is a US trade preference programme established in 2000 that provides eligible sub-Saharan African countries with preferential, including duty-free, access to the US market for qualifying products.
The programme’s future beyond 2028 will depend on further decisions by the US Congress and administration, as well as negotiations over the broader US-Africa trade relationship.
