South Africa welcomed the U.S. House of Representatives’ approval of a bill extending Africa’s preferential trade programme.
The African Growth and Opportunity Act, enacted in 2000, offers duty-free U.S. market access to eligible Sub-Saharan countries.
AGOA expired last September, and analysts estimate that hundreds of thousands of African jobs depend directly on the programme.
Trade Minister Parks Tau said the renewal would provide “certainty and predictability” for both African and American businesses relying on it.
He added that South Africa continues bilateral trade negotiations with the United States despite strained relations under President Trump’s second term.
The bill must now pass the Senate before reaching Trump’s desk for final consideration and potential approval.
Officials said the programme’s extension would help stabilize trade ties and reassure investors amid economic uncertainty across the continent.
Tau described AGOA as a crucial framework for expanding commerce, creating jobs, and fostering long-term economic cooperation with the U.S.
South Africa, Africa’s largest economy, views the extension as essential for maintaining momentum in regional exports and trade partnerships.
Experts warn that without renewal, some industries could face severe disruption, threatening livelihoods that rely heavily on U.S. market access.
The legislative move is seen as a rare positive development in Washington’s shifting trade policies toward Africa under Trump’s administration.
Renewing AGOA aligns with broader efforts to strengthen U.S.-Africa relations and encourage sustainable economic growth across Sub-Saharan nations.
The extension could unlock new opportunities for both exporters and investors while reinforcing confidence in African trade markets.
While the Senate review proceeds, South African officials remain cautiously optimistic about securing the three-year continuation of AGOA benefits.
Observers say the programme’s survival reflects ongoing recognition of Africa’s strategic importance in global trade and investment frameworks.