This morning, during the 7th BizNews Conference of 2025 at the Hermanus Municipal Auditorium in Cape Town, Western Cape Province, Deputy President Shipokosa Paul Mashatile delivered a keynote address. Policymakers and business leaders used the platform to emphasise the importance of maintaining strong trade ties with the United States, stressing the need for a balanced approach to trade relations. The discussions underscored the urgency of diversifying South Africa’s export markets to avoid excessive reliance on any single trading partner.
The potential loss of benefits under the African Growth and Opportunity Act (AGOA) presents a serious challenge to South Africa’s agricultural sector. Established in 2000, AGOA provides duty-free access to the U.S. market for eligible sub-Saharan African countries, boosting trade and economic development.
For South Africa, AGOA has played a crucial role in expanding its agricultural exports. Approximately 4% of the country’s agricultural produce, valued at around $450 million annually, is exported to the U.S. Notably, South Africa’s citrus industry alone exported 120,000 tonnes to the U.S. in 2022, generating $134 million in revenue. These numbers shed light on the significance of AGOA in sustaining the livelihoods of thousands of farmers and workers.
However, with ongoing geopolitical shifts and policy uncertainties, South Africa faces the real risk of losing its AGOA benefits. This could have devastating consequences for farmers and agriculture workers, especially those in industries heavily dependent on the U.S. market. Without AGOA, tariffs would increase, reducing competitiveness and potentially leading to job losses across the agricultural value chain.
Given the critical role AGOA plays in South Africa’s economy, maintaining strong diplomatic and trade relations with the United States is essential. Strengthening these ties can help ensure continued market access and mitigate the potential economic shocks that would arise from AGOA’s termination.
South Africa has long been a key economic partner of the U.S. in Africa, with trade and investment spanning various sectors, including manufacturing, mining, and agriculture. To secure its place in AGOA, South Africa must prioritize mutually beneficial trade agreements, political cooperation, and diplomatic engagements.
While the U.S. remains an important trading partner, relying too heavily on a single market is risky. To protect its economy from potential disruptions, South Africa must diversify its export destinations.
South Africa is already part of BRICS (Brazil, Russia, India, China, and South Africa), an economic bloc that accounts for over 40% of the world’s population and a significant portion of global trade. By leveraging its membership in BRICS, South Africa can strengthen trade ties with China and India, two of the world’s largest consumer markets.
Additionally, Deputy President Paul Mashatile said that South Africa’s participation in the IBSA Dialogue Forum (India, Brazil, South Africa) will strengthen its capacity to expand trade and investment partnerships with other emerging economies. He added that these alliances provide valuable opportunities to diversify exports, foster agricultural cooperation, and lessen dependence on Western markets.
Beyond BRICS, South Africa has maintained strong trade relations with the European Union (EU). The EU remains one of South Africa’s top trading partners, and recent developments indicate further strengthening of this relationship.
The EU announced a €4.4 billion investment package aimed at supporting South Africa’s energy transition, vaccine production, and digital infrastructure. These investments demonstrate the strategic importance of South Africa to European markets and present an opportunity to enhance trade and attract foreign investment.
To ensure long-term economic stability and agricultural growth, South Africa must take a balanced approach. Maintaining strong bilateral relations with the United States is essential to preserving AGOA benefits and safeguarding the agricultural sector. At the same time, the country must expand its trade partnerships with China, India, Russia, and Brazil through BRICS, leveraging these emerging markets to diversify exports and reduce dependency on a single trading partner.
Strengthening engagement with the European Union is equally important, as increased collaboration can attract investment and open new opportunities for agricultural exports. Additionally, supporting local agricultural industries in developing new markets will help create a more resilient economy, ensuring sustained growth and stability in the face of global trade uncertainties.
The loss of AGOA benefits would have far-reaching consequences for South Africa’s agricultural sector. However, by proactively diversifying export markets and strengthening international trade relations, the country can build a resilient and sustainable economy. While maintaining good relations with the U.S. remains crucial, expanding partnerships with BRICS nations and the EU will be key to ensuring long-term economic security and agricultural growth.
