Ramaphosa Warns South Africa Must Prepare for AGOA Trade Loss
President Cyril Ramaphosa warned that South Africa must prepare for potential exclusion from the U.S. AGOA trade program, which could devastate thousands of automotive jobs.
President Cyril Ramaphosa warned on October 19, 2026, that South Africa must prepare for its potential removal from the African Growth and Opportunity Act (AGOA). While the United States Congress renewed the duty-free trade pact until 2028, the agreement currently awaits the signature of President Donald Trump. Any decision to exclude South Africa must be announced by November 2 to take effect on January 1.
Ramaphosa described the potential impact on employment as "devastating," particularly within the automotive sector. According to Naamsa, an estimated 125,000 jobs, including subcontractors, are linked to the agreement. To mitigate these risks, Ramaphosa and Deputy President Paul Mashatile are seeking alternative markets, specifically citing a zero-tariff scheme for South African goods introduced by China in May.
Bilateral relations have deteriorated under the Trump administration, which has accused South Africa of persecuting white people—a claim the South African government denies. This tension has manifested in U.S. aid cuts, the expulsion of South Africa's ambassador, visa restrictions, and a resettlement program that admitted 16,287 white Afrikaners as refugees over the past year.
During a separate briefing in Johannesburg, Ramaphosa also addressed domestic issues, issuing a political ultimatum to Mayor Dada Morero to clean up the city before the November 2025 G20 summit or risk his job. He further noted that the government is considering fuel price relief for citizens despite limited fiscal room.