Preferential access to the US market is vital not only for Pretoria but also for American companies reliant on imports, President Cyril Ramaphosa has said

South African President Cyril Ramaphosa has urged the US to renew the African Growth and Opportunity Act (AGOA), warning that its expiry later this month would seriously damage South Africa's economy and undermine decades of progress in American-African trade.

Speaking at the South Africa-US Trade and Investment Dialogue in New York on the sidelines of the UN General Assembly, Ramaphosa said: "AGOA has been the foundation of US-Africa trade for nearly a quarter of a century. In South Africa, it has supported jobs from auto assembly plants to farms to high-tech manufacturing hubs. Its expiry would not only undermine those gains, but also remove the link to the Generalised System of Preferences, which has been so critical to many of our exporters."

"For this reason, I appeal for your support in advocating for its renewal. Predictable, preferential access to the US market is vital not only to South Africa but to American companies who depend on reliable imports," said Ramaphosa.

He said South Africa values its relationship with Washington, but stressed that recent trade tensions must be resolved.

"We do not take this relationship for granted. We value the trust that American companies place in South Africa, and we are committed to ensuring that this partnership continues to grow. The reality is that tariffs do not only affect one side. They ripple across industries and communities in both our countries."

The United States remains one of South Africa's largest trading partners outside Africa, and Ramaphosa highlighted the scale of American investment.

"The US is a top source of foreign direct investment in South Africa, supporting hundreds of thousands of direct and indirect jobs in our economy. More than 600 US companies are already invested and operating successfully in South Africa. They are invested in areas as diverse as aerospace, mining and energy, consumer goods and finance," said Ramaphosa.

He also pointed to South African businesses operating in the US. "South Africa is equally proud that some of our own companies have established a footprint in the US, from chemicals and financial services to mining, hospitality, and food products. These firms are ambassadors of our entrepreneurial spirit, our innovation and our global competitiveness."

Ramaphosa said the dialogue should go beyond short-term issues to focus on shared priorities. "Our goal is simple: to sustain and expand trade flows, to keep our companies competitive, and to ensure that consumers and workers in both countries benefit from our partnership."

Looking to the future, he positioned South Africa as a key entry point to Africa's 1.4-billion-person market.

"Africa is rising. The African Continental Free Trade Areaopening new horizons, creating a market of 1.4 billion people. South Africa is ideally positioned as your gateway into this market. We have the infrastructure, the financial systems, the legal and regulatory frameworks, and the regional linkages to serve as a platform for US companies to expand into the continent," he said.

The president outlined sectors ripe for collaboration, including green energy, agriculture, pharmaceuticals, and digital innovation.

"We want to secure partnerships that bring more US investment into South Africa, into renewable energy projects, digital infrastructure, advanced manufacturing, and the green hydrogen economy. We see opportunity in pharmaceuticals and healthcare, where we have the manufacturing capacity to strengthen global supply chains," he said.

To strengthen cooperation, Ramaphosa announced a new initiative. "To provide structure and continuity to these efforts, I am pleased to welcome the establishment of a South Africa-US Trade and Investment Forum. Its inaugural session will take place next year in South Africa, alongside our South Africa Investment Conference," he said.

Closing his address, Ramaphosa said the partnership must be defined by shared values as much as trade figures.

"This evening, my message is simple: we want to build deeper partnerships in financial services, mining technology and automotive manufacturing, positioning South Africa as both a reliable production hub and a launchpad into Africa. This engagement is about building a partnership that looks to the future, that is resilient and that adapts to the challenges of our time," said Ramaphosa.

First published by IOL

(RT.com)