South Africa Faces Uncertainty Over Agoa Amid New Us Doge Policies

South Africa has expressed growing concern over the potential withdrawal of U.S. support for its inclusion in the African Growth and Opportunity Act AGOA, a trade agreement that enables multiple African nations to export goods to the U.S. market duty-free, fostering employment and economic development while also providing American businesses with enhanced access to African markets.

With AGOA set for renewal in 2025, efforts to secure its extension have been ongoing. Another dimension of uncertainty is the role of the Department of Government Efficiency DOGE , a cost-cutting initiative introduced by President Donald Trump and led by South African-born billionaire and tech entrepreneur Elon Musk with a mission to reduce wasteful and fraudulent spending.

DOGE has already spearheaded significant budget reductions, fueling speculation that trade agreements like AGOA could face financial constraints or restructuring. This aligns with Trump's broader policy of prioritising economic efficiency and U.S. national interests over international trade commitments.

Reports indicate that DOGE has already cancelled consulting contracts worth 26 million and identified 420 million in potential savings.

Further complicating diplomatic relations is South Africa's enactment of the Expropriation Act , which permits land expropriation without compensation, as well as its decision to grant refugee status to Afrikaners . Additionally, South Africa's involvement in BRICS has reportedly drawn criticism from the Trump administration, which views the country as aligning with its geopolitical rivals.