Ramaphosa under pressure as new US bill threatens South Africa’s economy

A new United States Senate bill aiming to extend the African Growth and Opportunity Act for two years has triggered fresh diplomatic tension by proposing the explicit removal of South Africa from the trade programme.

• A new US Senate bill seeks to renew AGOA for two years but explicitly removes South Africa from the programme.
• The proposal challenges Pretoria’s geopolitical stance, particularly its engagements with China and Russia.
• South African officials say negotiations with Washington continue and insist there is still bipartisan backing for AGOA’s renewal.
• The bill marks the latest move by US Republicans to pressure South Africa amid rising diplomatic tensions.

The legislation, introduced by Republican Senator John Kennedy, comes at a sensitive moment, following the official expiration of AGOA at the end of September, which marked the end of a 25-year framework that has shaped trade between the US and several African economies.

The bill, known as the AGOA Extension and Bilateral Engagement Act or AGOA 2.0, was submitted to the Senate and referred to the Committee on Finance, where no further action has been taken.

Its introduction coincided with a 43-day US government shutdown, which delayed legislative activity.

The proposal surfaced during a briefing to South Africa’s parliamentary portfolio committee by the Department of Trade, Industry and Competition.

Officials told lawmakers that trade negotiations with Washington are ongoing and stressed that there is strong bipartisan support for renewing AGOA among Republicans and Democrats.

According to the department, the White House has signalled support for a shorter one-year renewal.

“It is expected that AGOA renewal will be a rollover of current AGOA benefits with existing members, meaning that SA may be retained in the programme,” the department noted.

Yet the department did not mention that Senator Kennedy’s version specifically excludes South Africa.

US slams South Africa

The senator argued that AGOA should only be extended to African nations that “support US interests”, insisting that South Africa’s geopolitical position requires reevaluation.

Kennedy framed the bill as a tool to counter China’s economic reach across the continent.

“China is using Africa to expand its influence at America’s expense. We need to rethink our relationships in the region while strengthening trade with African countries that share our values,” he said, adding that AGOA must work for “America’s interests, not against them”.

If enacted, AGOA 2.0 would revive the trade programme for two years and require Washington to pursue bilateral agreements with selected African partners. It emphasises conditions such as democratic governance, human rights protections, and anticorruption measures.

The bill also incorporates the senator’s earlier US-South Africa Bilateral Relations Review Act, which demands a complete assessment of Pretoria’s relationship with Beijing and Moscow.

South Africa faces imminent exclusion from AGOA

The Senate bill mirrors a similar proposal introduced in the US House of Representatives in April, but goes further by explicitly calling for South Africa’s removal.

It requires the US President to certify whether South Africa undermines American national security and mandates a classified list of South African officials who could face sanctions under the Global Magnitsky Act.

Crucially, it would end South Africa’s eligibility for AGOA altogether.

This is the third attempt by US Republicans to penalise South Africa for its international alignments. Relations between the two governments have become increasingly strained since the Trump administration took office in February.

US snubs G20 Summit

Tensions escalated at the weekend’s G20 Leaders’ Summit, where the US boycotted proceedings and pressed South Africa to avoid issuing a leaders’ declaration.

Pretoria joined other G20 members in adopting the declaration, a move widely viewed as a diplomatic snub to Washington.

In a further point of friction, South Africa rejected a request for President Cyril Ramaphosa to hand over the G20 gavel directly to the US charge d’affaires.

The handover is now expected to take place quietly on 25 November.