The African Growth and Opportunity Act (AGOA) was established to boost African economies by providing tariff-free U.S. market access. South Africa, a prime candidate, had hoped to benefit since its democratic transition. However, under the Trump administration, U.S.-South Africa relations have soured; threats to cut aid and political pressures related to land reforms and international legal actions against Israel have emerged. Concerns among South African leaders about AGOA's continuity persist, particularly with South Africa's alignment within the BRICS framework seen as a potential risk to trade agreements.
Trump's administration has threatened to cut all aid to South Africa over a recently passed land reform bill that he views as potentially harmful to the country's white minority.
South African business leaders were concerned that the country's AGOA membership was in jeopardy due to South Africa's status as a BRICS nation, and perceived orientation towards Russia and China.
'South Africa should prepare accordingly to not continue forming part of AGOA,' Chris Hattingh, executive director at the South African think tank Centre for Risk Analysis, told DW.
The gutting of the development agency USAID has affected South Africans either employed by USAID's assistance projects.
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