President Cyril Ramaphosa appealed for the US’s support in advocating for the African Growth and Opportunity Act’s (Agoa’s) renewal, encouraging greater collaboration between US companies and the country’s universities, research institutions and training programmes, in order to jointly build the skills and innovation capacity needed for the future.

Ramaphosa was speaking during the SA-US trade and investment dialogue, in New York, where he noted that Agoa’s expiry would not only undermine the gains it made, but also remove the link to the Generalised System of Preferences, which had been so critical to many of the country’s exporters.

The current authorisation of Agoa is set to expire on Tuesday, making its renewal a significant topic of discussion for future US-Africa trade relations.

Ramaphosa highlighted that Agoa had been the foundation of US-Africa trade for nearly a quarter of a century.

“In South Africa, it has supported jobs from auto assembly plants to farms to high-tech manufacturing hubs,” he said.

He stated that predictable, preferential access to the US market was vital not only to South Africa but to American companies who depended on reliable imports, noting that more than 600 US companies were already invested and operating successfully in South Africa.

“…they are invested in areas as diverse as aerospace, mining and energy, consumer goods and finance. These investments have built industries, created jobs and anchored long-term partnerships that have benefited both our peoples,” he explained.

He expressed satisfaction with some of South African companies which had established a footprint in the US, from chemicals and financial services to mining, hospitality and food products.

“These firms are ambassadors of our entrepreneurial spirit, our innovation and our global competitiveness.

“We have in our midst a number of leading South African companies that are eager to engage with their US counterparts to explore new areas of collaboration, joint ventures and investment,” he said.

Relations between South Africa and Trump’s administration came to a head earlier this year, after the signing of the Expropriation Act, tensions which many believe were exacerbated by the Solidarity Movement and its members AfriForum and Solidarity lobbying the US.

In August, US President Donald Trump introduced tariffs on goods reaching the US from countries around the world, with South Africa being amongst the countries worst affected.

Ramaphosa noted that these measures had already disrupted supply chains and created uncertainty for both South Africa’s exporters and American importers.

“The reality is that such measures do not only affect one side. They ripple across industries and communities in both our countries,” he said.

He noted that South Africa wished to deal with these issues constructively.

“…we understand the concerns that have been raised by the United States and are willing to engage to find solutions that are mutually beneficial. Our goal is simple: to sustain and expand trade flows, to keep our companies competitive, and to ensure that consumers and workers in both countries benefit from our partnership,” he explained.

TRADE AND INVESTMENT FORUM

Meanwhile, Ramaphosa welcomed the establishment of a South Africa-US Trade and Investment Forum, which will take place next year in South Africa, alongside the annual South Africa Investment Conference.

He explained that the Forum would allow the countries to engage more systematically to address obstacles as they arose and to pursue opportunities in a coordinated way.

Ramaphosa highlighted that South Africa wanted to secure partnerships that brought more US investment into South Africa, into renewable-energy projects, digital infrastructure, advanced manufacturing, and the green hydrogen economy.

AFRICA LAUNCHPAD

“We want to see collaboration in life sciences and health innovation, areas where we have strong capabilities and untapped potential. We want to build deeper partnerships in financial services, mining technology and automotive manufacturing, positioning South Africa as both a reliable production hub and a launchpad into Africa [via the African Continental Free Trade Area Agreement].

“At the same time, we want to ensure that South African companies expand their presence in the United States, forging stronger links in areas like food and beverages, retail, creative industries and fintech,” he said.

He noted that the relationship between South Africa and the US was defined by a shared commitment to innovation, to entrepreneurship, to sustainable development and to inclusive prosperity.