US Senate approves one-year AGOA extension

The African Growth and Opportunity Act (AGOA) has been given Senate approval for a one year after extensive deliberations by lawmakers in the United States (US).

Calls for an extension of AGOA received strong bi-partisan support in the US House of Representatives last month and have now been given the green light by the Senate.

AGOA – which was established in 2000 – exempts eligible African countries from taxes on their exports to the US.

The legislation lapsed in September, sparking fears of a pinch on investment, jobs and exports for qualifying sub-Saharan countries.

The latest extension is only until the end of 2026, despite repeated calls by some African leaders to extend the trade pact by a longer period.

While Trade and Industry Minister Parks Tau said the extension will provide some relief to exporters that benefit from the scheme, he said he hopes the short extension is the first step towards more certainty around investment and purchasing decisions.

Ministerial spokesperson Kaamil Alli: “The AGOA extension comes at a time when South Africa continues to engage constructively with the United States on an Agreement on Reciprocal Tariffs which seeks to reduce the 30% tariff imposed by the US on goods exported from South Africa.

“South Africa continues to engage constructively with the US administration and believe that a healthy trade relationship benefits both our countries.”

US president Donald Trump will have the final say before the bill is signed into law.