The African Growth and Opportunity Act (AGOA) has, since 2000, given eligible sub-Saharan African countries duty-free access to the United States market for a wide range of products. For South African exporters in sectors such as automotive, agriculture, wine and manufactured components, it has been an important part of how they price and compete. The last year has been unusually unsettled. This article summarises the main developments as at the date of the update shown above.
The lapse and the first extension
The programme expired on 30 September 2025. In early 2026 it was renewed: legislation signed on 3 February 2026 extended AGOA retroactively from 30 September 2025 to 31 December 2026, restoring benefits for eligible countries, including South Africa.
The further extension to 2028
More recently, reports indicate that the US Congress has passed a further extension, as part of wider funding legislation, moving the end date from December 2026 to December 2028. Exporters should confirm the current legislative status before relying on it, as the position has changed several times. Commentators have described the extension as welcome but short: two years is still not long enough to support long-term investment decisions.
Eligibility is not guaranteed
Participation is not automatic. Eligibility is determined by the US government, and there has been ongoing political debate in Washington about South Africa’s position in the programme. For now South Africa remains an eligible country, but exporters should treat that as something to monitor rather than assume.
The tariff overlay
Separately from AGOA, the United States imposed a 30% tariff on South African goods in 2025. For many products, that tariff overrides most of the benefit AGOA would otherwise provide, which is why the practical value of the programme depends heavily on how the wider tariff position develops. Negotiations between the two governments are continuing.
What exporters should do now
Check that your products qualify under AGOA’s rules of origin and that your documentation is in order.
Review your export contracts for how tariff changes are dealt with, including who bears the cost of new or increased duties and whether prices can be adjusted.
Model your pricing under more than one scenario, including loss of AGOA benefits, so that a sudden change does not catch you unprepared.
Follow developments closely and take specific advice for your products and markets, as this is a fast-moving area.
This article is general information only and does not constitute legal advice. The law may have changed since publication, and reading this article does not create an attorney-client relationship. Please consult an attorney about your specific circumstances.
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