Economic trouble for SA as it faces AGOA expulsion

The United States of America could kick South Africa out of the African Growth and Opportunities Act (AGOA) which could be an economic blow.

If this happens, South Africa’s economy will be in serious ruin.

AGOA provides eligible sub-Saharan African countries with duty-free access to the U.S. market for over 1,800 products.

This is what the South African Government said it benefits from AGOA;

“South Africa has to date been AGOA’s largest and most diversified non-oil exporter utilising AGOA preferences.

“AGOA creates over 62,000 jobs in South Africa and 100 000 jobs in the USA.”

In 2014, 21% of SA’s exports to the US were exported under AGOA, while 16% was under GSP.

In 2014, major AGOA/GSP-beneficiary sectors were: vehicles (75%); mineral and metals (12%) chemicals (2.7%), and agricultural products (11%).

•SA’s exports classified as purely under AGOA (excluding other preferences) amount to US$1.75 billion
•SA exported over R23 billion worth of vehicles to the US in 2014, supporting 30 000 jobs in PE and Gauteng.

•SA exported agricultural products worth $175 million, which represents 57% of agricultural exports to the US. (2.1% of SA’ total exports to the US).

•AGOA has helped to support regional integration and to stimulate regional value chains (automotive and textile sectors).

Zwnews