By Radarr Africa Business Desk
LAGOS, November 9 (Radarr Africa) – The United States will exclude South Africa and Rwanda from the African Growth and Opportunity Act (AGOA), the duty-free trade programme for sub-Saharan Africa, from January 1, US Trade Representative Jamieson Greer said on Monday, November 2.
Greer said the two countries follow practices “inconsistent” with the programme’s eligibility criteria, including barriers that undermine American trade and investment, AFP reported. Removing a country requires 60 days’ notice to Congress and to the country concerned. AGOA was renewed until the end of 2028 but is reviewed each year.
South Africa is AGOA’s largest beneficiary. Washington has criticised Pretoria, including over allegations of discrimination against white Afrikaners, which South Africa rejects.
Trade Minister Parks Tau said the economy would remain stable as the country looks for other markets. Before the decision, Tau had hoped for a favourable outcome. President Cyril Ramaphosa had said about a week earlier that South Africa should prepare for an adverse decision.
In Rwanda’s case, the United States sanctioned the country’s defence ministry last week over alleged backing of the M23 rebel group in eastern Democratic Republic of Congo. Rwanda denies the claims. M23 has seized large areas of eastern DR Congo since resuming fighting in 2021, with Rwandan help according to the AFP report.
Foreign Minister Olivier Nduhungirehe told AFP, at a Russia-Africa summit in Moscow, that Rwanda should not be made a scapegoat for events in DR Congo. He said the situation there is mainly a Congolese issue.
AGOA gives eligible African exporters duty-free access to the US market for thousands of products. Loss of eligibility exposes exporters to the standard tariffs that apply to other countries, which can erode the price advantage that has underpinned their sales in the United States.
