The United States committed nearly $440 million in assistance to South Africa in 2024 alone, supporting various economic, healthcare, and social initiatives.

The SA Chamber of Commerce in the US (SACCUSA) is of the view that any potential withdrawal of this support, along with threats to review trade agreements such as African Growth and Opportunity Act (AGOA), could significantly impact critical sectors and communities reliant on these partnerships.

This is after President Trump posted on X that “certain classes of people” are being treated “very badly” and the suggestion that U.S. funding to South Africa may be cut.

Neil Diamond, SACCUSA President, said the U.S. is one of South Africa’s most significant trade partners, with the African Growth and Opportunity Act (AGOA) playing a crucial role in facilitating trade between the two economies.

“South Africa exported over $6.5 billion worth of goods to the U.S. under AGOA in 2024 alone, supporting key industries such as automotive manufacturing, agriculture, and mining. The potential revocation of AGOA benefits would significantly impact South African businesses, leading to job losses and economic instability” said Diamond.

He also said South Africa’s continued eligibility under AGOA is critical to sustaining bilateral trade, supporting thousands of jobs, and fostering economic development. Any deterioration in relations, particularly involving economic assistance and trade agreements, could have widespread implications for both South African and American businesses.

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