Ramaphosa warns of losing benefits under U.S. trade program covering more than 7,000 products

Key Facts

South African President Cyril Ramaphosa warned that his country could lose trade benefits under the African Growth and Opportunity Act, calling for preparations given the potential impact on jobs. In remarks reported by Reuters, he said the employment impact of potential exclusion would be "devastating," warning about the country's continued access to preferential treatment in the U.S. market. He added: "As president, I have to prepare our country if that ever happens." Ramaphosa said his government was holding talks with U.S. counterparts on continued participation in the program while preparing for the possibility of losing its benefits. South Africa remains listed among eligible countries, according to its country page on the Office of the U.S. Trade Representative's website.

The importance of the U.S. market to South African exports is underscored by U.S. goods imports from the country reaching $16.5 billion in 2025, according to the Office of the U.S. Trade Representative. Those imports rose 12.1% from 2024, equivalent to an annual increase of $1.8 billion in U.S. purchases of South African goods. In terms of the program's scope, the African Growth and Opportunity Act provides duty-free access to the U.S. market for more than 7,000 products, according to the Southern African Development Community. Sectors supported by the program include textiles and apparel, alongside agriculture, which the group names in its description of the trade benefits. The list also includes minerals and automotive manufacturing, extending preferential treatment across agricultural, industrial and mineral activities.

South Africa's government had welcomed the extension of the African Growth and Opportunity Act until December 31, 2028, according to its statement on a cabinet meeting. However, the program's continuation until that date is accompanied by reviews of beneficiary countries' eligibility under the rules governing participation and access to benefits. Those rules require the U.S. president to review annually each beneficiary sub-Saharan African country's progress toward meeting eligibility requirements, according to a notice from the Office of the U.S. Trade Representative published in the Federal Register. Among those requirements is that a country must not engage in activities that undermine U.S. national security or foreign policy interests. South Africa's continued access to benefits therefore remains subject to eligibility requirements and annual review, alongside the announced timeline for the program's extension.

Alongside talks with Washington, Ramaphosa said he and Deputy President Paul Mashatile were traveling to various countries to explore alternative markets for South African exports. Efforts to find other trade outlets include visits by the president and his deputy, according to Ramaphosa's remarks reported by Reuters on preparations for the possible loss of U.S. benefits. On trade with China, a scheme providing zero-tariff treatment for eligible South African exports took effect on May 1, 2026, according to the South African Revenue Service. The scheme grants exports that meet its requirements preferential treatment when entering the Chinese market, under arrangements the revenue service announced had taken effect. Access is subject to rules concerning the goods exported and their origin, as well as tariff quotas covering certain tariff lines.

The South African Revenue Service requires a certificate of origin to obtain preferential treatment when exporting goods to the Chinese market under the trade scheme. In its guidance, the service said: "You need a certificate of origin to benefit when exporting to the China market," identifying one requirement for obtaining the tariff concession. It also clarified in its implementation notice that certain tariff lines are subject to tariff quotas under the zero-tariff scheme for eligible exports. The Chinese arrangements apply on a temporary basis until April 30, 2028, according to the period specified on the service's page covering the scheme's rules of origin. That period ends before the U.S. program's extension expires on December 31, 2028, while each trade arrangement retains its own conditions for access to preferential treatment.

In currency markets, the South African rand edged higher in early trading on the day the report was published, according to Reuters, as investors awaited economic and budget developments. Traders were awaiting economic data and the medium-term budget statement, both cited in the context of trading that saw the currency improve slightly. On prices, Nedbank economists expect South Africa's headline inflation rate to accelerate to 4.8% in September, according to the agency's reporting of the bank's forecast. That compares with a reading of 4.4% in August, the previous reading on which the bank's economists based their forecast for higher inflation. On the timeline for trade arrangements, the temporary Chinese scheme ends on April 30, 2028, followed by the expiry of the U.S. program's extension on December 31, 2028.