By Lesedi Sibiya-Diplomatic Insider

President of the United States Donald Trump has officially signed the Continuing Appropriations and Extension Act, 2027 which will in turn extend the African Growth and Opportunities Act (AGOA) to December 2028. 

The extension was approved by the United States Senate in early August and was sent to the US House of Representatives on 1 September. 

The law was passed after a majority vote took place and was presented to President Trump on 2 September and signed into law. AGOA had been terminated in September 2025 but was initially extended at the start of the year until the end of 2026. 

The Trade Union has welcomed the extension, as they say that critical economic security for vital industries across sub-Saharan Africa, specifically South Africa. The union however warns that South Africa’s eligibility is not guaranteed, due to ongoing debates about whether it should remain included in the programme. 

There have been instances in which certain US lawmakers have attempted to explicitly exclude South Africa from the programme. 

“South Africa’s exclusion will have a devastating impact on important local industries, particularly the automotive and agricultural sectors, and will put thousands of specialised jobs at risk,” said Solidarity. 

Roughly 22% of South African exports to the US benefit from AGOA, resulting in billions of dollars in trade. Estimates have suggested that half a million jobs in South Africa rely on the AGOA programme. 

The union has also stated that they will continue to appeal to Washington to keep South Africa on the list. Economists have urged the government of South Africa to put the country’s economic interests at the core and work to repair their relationship with the US government. 

This would require South Africa to be more pragmatic with its trade diplomacy and work to de-escalate their tensions with the US government in order to protect their AGOA legitimacy and find a better avenue in navigating through tariffs.