Speaking during the launch of the 2025 SA Country Report in Pretoria, the AfDB’s Country Economist, Akhona Peter, said the trade agreement remains vital not just for SA, but also for neighbouring countries within the Southern African Customs Union. She noted that sectors such as agriculture and manufacturing, which rely heavily on duty-free access to the United States, would be particularly vulnerable if the agreement lapses.

“AGOA plays a key role, especially for farmers who currently enjoy preferential access to United Staes (US) markets,” Peter said in an interview. “If it’s not renewed and tariffs are reintroduced, the cost to jobs and exports could be significant.”

AGOA, which was first introduced by the US in 2000, provides selected African countries with tariff-free access for a wide range of products. For SA, it has helped boost exports of agricultural produce, clothing, and automotive parts.

Peter stressed the need for SA to prepare for possible changes. “In the event that AGOA is not extended, the country must look to diversify its trade relationships and reduce its over-reliance on a single market,” she added.

--ChannelAfrica--