Agencies
US President Donald Trump has moved to terminate Rwanda and South Africa’s participation in the African Growth and Opportunity Act (AGOA), threatening their preferential, duty-free access to the American market from January 1, 2027, in a decision that could deepen diplomatic and economic tensions between Washington and the two African nations.
The announcement was made on November 2, 2026, by US Trade Representative Jamieson Greer, who said Trump had notified Congress and the governments of Rwanda and South Africa of his intention to terminate their eligibility following an annual review of participating countries.
According to the US Trade Representative, Washington considers both governments to be engaging in practices that conflict with AGOA’s eligibility requirements, particularly those relating to trade and investment barriers, national security and American foreign policy interests.
Also Read :Mbeya Invites Investors to Build Modern Slaughterhouse in Ilemi
The US administration also cited concerns over corruption and trade restrictions in South Africa, while raising issues involving the rule of law, political pluralism, workers’ rights and human rights in Rwanda.
AGOA, established in 2000 under former US President Bill Clinton, provides eligible sub-Saharan African countries with preferential access to the American market for thousands of products without the usual import duties. The programme covers sectors including agriculture, textiles, automotive products and manufactured goods.
For South Africa, the proposed termination represents a significant development because the country is among the largest beneficiaries of the programme. Its exporters could face increased costs and reduced competitiveness in the US market, particularly in industries such as automotive manufacturing, agriculture, citrus production and wine.
Business representatives have warned that the loss of preferential access could put pressure on exporters, potentially affecting investment and employment in industries that depend on American customers.
Rwanda also faces economic consequences, particularly for exporters of agricultural products such as coffee and other goods benefiting from preferential access. However, Kigali has previously experienced restrictions under AGOA.
In 2018, the first Trump administration suspended duty-free treatment for Rwandan apparel exports following a dispute over Rwanda’s restrictions on imported second-hand clothing and footwear. Rwanda retained its other AGOA benefits at the time.
