US to Remove South Africa and Rwanda from AGOA Trade Programme

The United States will exclude South Africa and Rwanda from the African Growth and Opportunity Act, the United States Trade Representative has announced.

The exclusions are scheduled to take effect on January 1. The trade representative said the decision followed practices viewed by Washington as inconsistent with AGOA’s eligibility requirements.

United States Trade Representative Jamieson Greer said the concerns included barriers that undermine American trade and investment, as well as practices that pose a threat to US national security and foreign policy interests in the region.

Impact on South Africa

AGOA provides eligible sub-Saharan African countries with preferential access to the US market. South Africa is the programme’s largest beneficiary, and its eligibility has faced increased scrutiny as Washington’s criticism of Pretoria has intensified.

The United States has raised allegations of discrimination against white Afrikaners, claims rejected by South Africa.

South African Trade Minister Parks Tau said in Johannesburg that the country’s economy would remain stable regardless of the US decision. He said South Africa was seeking other international markets.

President Cyril Ramaphosa had earlier said South Africa should prepare for an adverse decision.

AGOA has been renewed through the end of 2028, but participating countries are reviewed annually. The US president conducts the eligibility review, and removal from the programme requires 60 days’ notice to Congress and the country concerned.

Rwanda dispute

Washington has also increased economic pressure on Rwanda over allegations that it supports the M23 movement in the neighbouring Democratic Republic of Congo. The Rwandan government denies backing the group.

The United States has sanctioned Rwanda’s defence ministry over the alleged links. According to the source report, M23 has seized areas of eastern DRC with Rwandan help since taking up arms again in 2021, though the claim concerning Rwandan assistance remains disputed by Kigali.

Rwandan Foreign Minister Olivier Nduhungirehe said Rwanda should not become a scapegoat for events in Congo. In comments to AFP, he said, “The situation in the DRC, the political situation, the security situation, is mainly a Congolese issue.”

He also said, “Rwanda must not be held as a scapegoat for what is happening in Congo forever.”

The US announcement places both countries’ access to the preferential trade programme under a new deadline, while South Africa says it will continue pursuing alternative international markets.