Cape Town Mayor Geordin Hill-Lewis expressed his concerns that the United States might withdraw its support for South Africa's participation in the African Growth and Opportunities Act (AGOA).
AGOA allows several African countries duty-free access to the American market on a range of imports, creating jobs and businesses within Africa. It also provides American businesses access to markets in Africa, including South Africa. The AGOA agreement is up for renewal in 2025, and efforts have been underway since last year to renew the agreement ahead of a possible Trump win. Hill-Lewis undertook a whirlwind tour of several US cities last year to persuade members of Congress and influential business figures to extend AGOA; however, Congress did not reach a decision before Trump's victory.
With Trump in the White House, South Africa has found itself in the crosshairs of his administration, which has announced plans to cut aid to the country due to its case against Israel at the International Court of Justice, accusing the country of genocide against the Palestinian people. Additionally, the adoption of the Expropriation Act, which allows for expropriation without compensation and offers refugee status to Afrikaners, has further complicated relations. South Africa's participation in BRICS also seems to irritate the Trump administration, which believes the country is leaning towards the US's adversaries.
Reflecting on his trip from last year and the developments since, Hill-Lewis stated that every effort to maintain AGOA was worthwhile, “because it will save thousands, possibly hundreds of thousands of jobs in our country that rely on AGOA.” He noted that the risk of expulsion from AGOA has never been higher and expressed pessimism about the country’s ability to remain in the agreement due to the poor relationship with the United States government.
Hill-Lewis remarked that there is a constant effort to annoy the US further, stating that the Expropriation Act has been “a terrible signal to the world, to investors around the world that we are not serious about investment and serious about growing our economy if we are prepared to undermine property rights like that.”
He expressed uncertainty about who Trump is listening to regarding South Africa but believes there are South Africans within his MAGA circle who may influence him. “What was it that broke the camel’s back? Only Mr. Trump or Mr. Musk can answer,” he remarked, referring to what might have persuaded Trump to act against South Africa. Looking ahead, Hill-Lewis emphasised the need to provide reasonable and rational information and facts to Trump from interlocutors who have his respect or at least his ear. He mentioned that the government is actively sending such interlocutors and that he would be willing to be part of this effort.
The South African Zionist Federation stated that for the country to be in the good books of the Trump administration, it should drop its case at the International Court of Justice. “The consequences of this reckless foreign policy are already evident. The United States has begun withdrawing financial support, and with AGOA up for renewal in 2025, South Africa is at serious risk of losing crucial tariff-free access to US markets. This would have a devastating impact on South Africa’s struggling economy, costing thousands of jobs and further exacerbating poverty and unemployment. Should AGOA be revoked, the blame will rest squarely on the ANC government and its self-destructive foreign policy,” said spokesperson Rolene Marks.