South Africa has also tried to put the potential impact of losing Agoa benefits into perspective, arguing that the country’s broader trade relationship with the US extends far beyond the program. Government figures show that around 89% of South African exports to the US entered under ordinary World Trade Organization most favored nation terms in 2025, while around 10% benefited from Agoa, up from 28% in 2024. “The value of South African exports” Bilateral trade between the two countries reached $28.8 billion in 2025, while more than 600 American companies operate in South Africa, generating around 134,600 jobs. Pretoria says the two economies have complementary trade interests. South Africa supplies 12 of the 50 minerals considered critical by the United States, as well as 70% of American isotopes used, among other things, in cancer treatment. South African manufacturers also use American inputs in products exported to the United States under Agoa, including vehicles and ships. Jee-A van der Linde, senior economist at Oxford Economics, said Washington’s move will put further pressure on South Africa’s manufacturing sector, warning that affected exports may be difficult to redirect to other markets. as global trade flows remain disrupted and South Africa faces increasing competition from cheap Chinese imports, particularly in the automotive industry,” he said. However, he noted that South Africa had previously managed to redirect some tariff-affected exports to markets such as Europe and China. US ambassador to South Africa, Leo Brent Bozell III, said it was regrettable that South African policies led to its exit from Agoa. “This was a predictable and avoidable outcome resulting from the South African government’s rejection of the real concerns raised by the United States,” he wrote in for human rights, political pluralism, the rule of law and workers’ rights. The move comes just a week after the Rwandan Ministry of Defense was sanctioned by the US Treasury for its alleged role in the armed rebellion in eastern DRC. The US Treasury said the Rwandan Ministry of Defense ordered thousands of troops to fight alongside M23 rebels in eastern DRC, providing weapons, equipment, logistics and training. Rwanda has denied backing the M23 despite overwhelming evidence Rwanda saw its exports to the United States rise to $43.3 million in 2025, up from $13.1 million in 2024, according to U.S. import data Alexander Venter, an economist at Oxford Economics, said Washington accounted for about 2% of Rwanda’s merchandise exports in 2025, and only about 4% of its exports to the United States benefited. of Agoa. Neighboring African countries and Asian markets continued to dominate Rwanda’s trade, Venter added.
