South Africa could lose jobs in agriculture and manufacturing after the United States announced plans to withdraw the country from trade preferences under the African Growth and Opportunity Act (AGOA) from January 1, 2027. Rwanda was also named in the proposed action, announced by the U.S. Trade Representative on November 2.
The U.S. said it intends to remove both countries from the program, citing eligibility concerns. For South Africa, the stated reasons include barriers to U.S. trade and investment, corruption, and national security and foreign policy issues, according to the USTR announcement.
The move is an announced intention, not a change that has already taken effect. It targets South Africa’s and Rwanda’s preferential access; it does not amount to a ban on their exports to the United States. Goods could still be sold there, but products currently benefiting from AGOA may face applicable tariffs without the preference.
Uncertain employment impact
South Africa’s trade union federation COSATU estimates that between 3,000 and 10,000 jobs could be at risk across agriculture and manufacturing. That is a union estimate, not a confirmed count of layoffs. The citrus industry has also warned of possible losses in the Western Cape and Northern Cape, but its association head said the impact could not yet be quantified.
South Africa reported that exports covered by AGOA were worth about $1.7 billion in 2025, roughly 10% of its exports to the U.S. and about 1% of its global exports. The government said it was assessing the effects on businesses, supply chains and employment, while continuing discussions with Washington. The figures and government response were reported by SAnews; COSATU’s estimate was reported by AFP.
Reid Bentley 
Dana Mcgee