The United States Congress has passed an extension of the African Growth and Opportunity Act (AGOA), but South Africa isn't fully in the clear just yet.
The United States Congress has passed an extension of the African Growth and Opportunity Act (AGOA), cementing its continuation through the end of 2028.
The extension was contained in a broader funding bill, which had been making its way through Congress.
The United States House of Representatives on Tuesday (1 September) voted to pass the bill that had been amended and passed by the US Senate earlier in August.
The bill was fully expected to pass, as it was necessary to avoid another government shutdown. It ensures that government funding can continue after 1 October 2026.
It passed by a vote of 340 to 78 and was sent to US President Donald Trump to be signed into law.
Inside the wider bill, the extension to AGOA was quietly tucked away.
The only amendment to the AGOA aspect of the bill was changing its end-date from December 2026 to December 2028, meaning all countries part of the programme remain eligible – for now.
According to the United States Chamber of Commerce, the bill’s passage is a critical step toward providing long-term certainty for American companies to make investment decisions.
Joshua Walker, Chief International Affairs Officer at the chamber, welcomed the extension, adding that the US government should use the new window as an opportunity to ensure the US remains a partner of choice for the region,
AGOA was extended alongside the Haiti Economic Lift Programme (HELP).
“These programs also function as essential tools of American strategic competition,” Walker said.
“As state-directed, non-market actors seek to expand their commercial and diplomatic footprint across Africa and the Western Hemisphere, AGOA and HELP are key to diversifying critical supply chains away from non-democratic actors and supporting constructive US engagement in regions of growing geopolitical importance.”
Walker said that AGOA has been the cornerstone of US-Africa commercial engagement for 25 years, providing duty-free US market access for eligible sub-Saharan African nations.
While it is an obvious benefit to participating countries, it also benefits the United States by supporting US jobs, lowering costs for consumers, boosting US exports, and advancing diplomatic ties across Africa.
The AGOA extension is a huge win for South Africa, but the country is not entirely out of the woods yet, either.
While AGOA may be extended, the list of eligible countries can still be changed, which could happen before the next ’round’ of support, ie** before January 2027**.
This leaves a small window where Trump could excise South Africa from the programme.
AGOA was first enacted in 2000 to provide duty-free access to the US market for eligible Sub-Saharan African countries, covering more than 1,800 products.
To qualify for AGOA’s duty-free treatment, countries must establish or make continual progress toward establishing a market-based economy, the rule of law, political pluralism, and the right to due process.
Additionally, countries must eliminate barriers to US trade and investment, enact policies to reduce poverty, combat corruption, and protect human rights.
It is that last aspect that has riled the United States about South Africa’s continued presence in the programme.
Various US lawmakers see South Africa as increasingly aligned against US interests, with the country openly supporting Iran, Russia and China. Trump aligns with these views.
The nation has also taken issue with various laws and policies in South Africa that are seen as working against and putting up barriers for US companies.
These include the country’s BEE laws, the Expropriation Act, and apparent inaction on rural safety and what it deems discrimination against minorities.
The US has sought to “punish” South Africa in various ways, mainly through tariffs, the pulling of funding to presidential programmes, and targeted efforts to undermine the country’s global reputation.
Local economists and analysts have stressed the importance of keeping South Africa on AGOA, with billions of rands in trade and hundreds of thousands of jobs depending on it.
The South African government has been urged to strengthen its diplomatic ties to the US and find a way to navigate the icy relationship with Washington.
Follow the story
