South Africa Emphasizes Industrialization and Job Creation at AGOA Forum
In a bid to reset and create partnerships, South Africa’s position at the 21st African Growth and Opportunity Act (AGOA) Forum focused on industrialization, building a capable state, and job creation. The Department of Trade, Industry and Competition (dtic) regards the AGOA Forum as a crucial engagement, reinforcing the strong economic ties between South Africa, the United States, and the African continent.
According to Trade, Industry and Competition Minister Parks Tau, the mutually beneficial economic and trade partnership between South Africa and the US was highlighted by the presence of over 600 US businesses operating in South Africa, which has created over 1.3 million jobs in sub-Saharan Africa.
The South African delegation presented proposals for the extension of AGOA for stability, improved rules of origin, and adjustments to the eligibility review process to preserve regional value chains and enhance Africa’s manufacturing capabilities. The Minister emphasized the importance of maintaining these value chains, calling for AGOA enhancements to support the Africa Continental Free Trade Area (AfCFTA) integration.
Parks emphasized that AGOA and AfCFTA should be viewed as complementary forces crucial for Africa’s economic integration, rather than separate entities. He noted that AGOA has significantly expanded Africa’s access to US markets, while AfCFTA aims to create a unified continental market by eliminating tariffs and fostering economic cooperation among African nations.
To fully leverage both frameworks, Parks suggested enhancing AGOA’s provisions to support AfCFTA’s goals, including extending AGOA to provide trade stability, improving rules of origin to streamline the integration of regional value chains, and adjusting the eligibility review process to reflect AfCFTA’s progress.
The Minister also commended Deputy Minister Andrew Whitfield for his exceptional facilitation during the highly contested meeting that determined the host nation for AGOA in 2025, and Deputy Minister Zuko Godlimpi for representing South Africa at the pivotal BRICS+ Trade Minister’s Meeting.
The outcomes of the BRICS+ Meeting included a call for a predictable, fair, and equitable trade environment consistent with WTO rules, as well as a commitment to sharing best practices in the role of Special Economic Zones (SEZs) in driving economic growth and investment.
Parks concluded that both the AGOA Forum and the BRICS Trade Ministers Meeting were fundamental in advancing international trade relations and economic cooperation, underscoring South Africa’s commitment to pursuing transparent and strategic partnerships with both its Global North and Global South partners.
