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17 October 2025 – The African Growth and Opportunity Act (Agoa) expired last month, ending 25 years of duty-free access for over 30 African nations to the US market. South African exporters now face crippling 30% tariffs that threaten jobs and key industries.
Though some show resilience through market diversification, trade, industry, and competition minister Parks Tau is urgently seeking renewal or new trade deals to protect economic growth in an uncertain future.
Tau reaffirmed that South Africa, through its embassy in Washington DC, and with support from the department of trade, industry and competition, continues to engage all stakeholders, including Congress, to advocate for Agoa’s renewal.
“The priority is to get Agoa renewed even if it is for a short period to support South Africa’s export to the US,” he said.
Impact on agricultural exports
According to the US International Trade Commission data, SA-US total bilateral trade amounted to $20.4 bn in 2024, with SA exports totalling $14.6 billion, while SA imports amounted to $5.8 billion. Agoa, including the generalised system of preferences, accounted for 28% of SA’s exports to the US, amounting to $4 billion, while the most favoured nation regime accounted for 72% of SA’s exports to the US.
With Agoa now expired, South African exporters face a stark reality: adapt or perish. Lesego Serolong Holzapfel, the founder and CEO of Bokamoso Impact Investments and black female-owned wine brand Moedi Wines, revealed that the end of Agoa and the 30% tariff have forced them to rethink how they do business, but it has not broken their resolve.
“The termination of Agoa benefits and the subsequent imposition of a 30% tariff on South African agricultural exports have had a substantial impact on Moedi Wines’ operations. The United States has been one of our fastest-growing export markets, and the sudden escalation in trade costs has significantly undermined our competitiveness.
“Our landed costs have increased to a point where price positioning relative to wines from countries that continue to enjoy preferential access has become a major challenge. This has translated into slower growth in export volumes, with previously projected expansion of up to 40% in the US market now halved,” she said.
Expanding footprint to other markets
She revealed that some of their retail partners have scaled back on order volumes or sought extended payment terms to absorb the higher costs.
“Our immediate response has been to accelerate diversification. Europe and Scandinavia, including the United Kingdom, Denmark, and Germany, have become key growth targets, and we are expanding our footprint into high-potential African markets such as Nigeria, Ghana, and Angola, where demand for premium, values-driven African brands is increasing.
“We have also invested in e-commerce infrastructure to circumvent traditional distribution bottlenecks and protect margins. Through partnerships with e-commerce platforms, we can now deliver directly to consumers in over 40 US states, partially offsetting the impact of tariffs,” she said.
Now, the biggest challenge remains diminished competitiveness in the US, where price heavily influences market access. Smaller brands like Moedi face tougher battles for shelf space and steady cash flow amid pricing volatility. However, this pressure has spurred faster diversification and stronger brand-consumer connections, potentially strengthening long-term resilience. Source: Food For Mzansi