President Cyril Ramaphosa has advocated for the renewal of the African Growth and Opportunity Act (Agoa), which has been the foundation of US-Africa trade for nearly a quarter of a century.
Ramaphosa said on Wednesday that the Act, which expires later this month, had supported local jobs from auto assembly plants to farms and high-tech manufacturing hubs.
“Its expiry would not only undermine those gains but also remove the link to the Generalised System of Preferences, which has been so critical to many of our exporters. For this reason, I appeal for your support in advocating for its renewal,” Ramaphosa said.
The President was addressing business leaders during the SA-USA Trade and Investment Dialogue, which took place at the United Nations General Assembly, New York.
The President's call comes at a time when South Africa has been hit with a 30% tariff on imports by the United States.
“New challenges have emerged in our trade relationship, not least the reciprocal tariffs recently imposed on South African exports. These measures have already disrupted supply chains and created uncertainty for both our exporters and American importers,” said Ramaphosa.
“The reality is that such measures do not only affect one side. They ripple across industries and communities in both our countries.”
He said South Africa wished to deal with these issues constructively.
“We understand the concerns that have been raised by the United States and are willing to engage to find solutions that are mutually beneficial.
“Our goal is simple: to sustain and expand trade flows, to keep our companies competitive, and to ensure that consumers and workers in both countries benefit from our partnership.”
He said predictable, preferential access to the US market was vital not only to South Africa but to American companies who depend on reliable imports.
“Our conversation this evening must also look beyond immediate challenges. Africa is rising. The African Continental Free Trade Area is opening new horizons, creating a market of 1.4 billion people,” the President said.
South Africa is ideally positioned as the gateway into this market for businesses in the US.
“We have the infrastructure, the financial systems, the legal and regulatory frameworks and the regional linkages to serve as a platform for US companies to expand into the continent.
“South Africa is a country of 60 million people, but it is also... an entry point into a continental market of immense potential. South Africa is reforming and modernising its economy. We are addressing structural bottlenecks and diversifying our exports.”
He said government was driving industrialisation so that the country could move beyond raw commodities into higher-value goods and services.
“For US investors, this means opportunities, not only in established sectors but in new and dynamic industries. We see particular promise in agriculture, where we are expanding agro-processing and high-value food production.
“There are opportunities in automotives, where we are transitioning to electric vehicles and battery production. In green energy, our renewable energy endowments and platinum reserves offer unrivalled potential,” he said.
South Africa has potential in digital and technology-driven services, with a young, skilled workforce driving innovation. It offers opportunities in pharmaceuticals and healthcare and has the manufacturing capacity to strengthen global supply chains.
“In aerospace and defence, our advanced capabilities can complement US leadership. Across all these areas, our focus is on value addition, sustainable job creation and skills development.
“This is where our partnership can make the greatest difference. I want to encourage greater collaboration between US companies and our universities, research institutions and training programmes so that we can jointly build the skills and innovation capacity needed for the future,” the President said.
He said South Africa wanted to secure partnerships that brought more US investment into the country in renewable energy projects, digital infrastructure, advanced manufacturing, and the green hydrogen economy.
“We want to see collaboration in life sciences and health innovation, areas where we have strong capabilities and untapped potential. We want to build deeper partnerships in financial services, mining technology and automotive manufacturing, positioning South Africa as both a reliable production hub and a launchpad into Africa.
“At the same time, we want to ensure that South African companies expand their presence in the United States, forging stronger links in areas like food and beverages, retail, creative industries and fintech.”
He said those were companies that could add value, create jobs and deepen cultural and business ties.
“We believe strongly that the relationship between South Africa and the United States is not defined solely by trade figures or investment flows, important as they are. It is defined by a shared commitment to innovation, entrepreneurship, sustainable development and inclusive prosperity.” -SAnews.gov.za
