The United States has moved to remove South Africa and Rwanda from its African trade preference programme.

The move threatens the countries’ duty-free access to the world's largest economy, valued at approximately $33 trillion, from January 2027.

US President Donald Trump has formally notified Congress and the governments of both countries of his intention to terminate their eligibility for the African Growth and Opportunity Act (AGOA), following months of uncertainty over the future of the trade arrangement.

The decision, announced on November 2 by the Office of the United States Trade Representative (USTR), follows an annual review of sub-Saharan African countries participating in the programme.

US Trade Representative Jamieson Greer said the review found that both governments were engaging in practices that violated the conditions required to retain preferential access to the American market.

“President Trump found that the governments of Rwanda and South Africa are engaging in practices that are inconsistent with AGOA's eligibility criteria,” Greer said.

“These concerning and pervasive practices include, but are not limited to, barriers that undermine American trade and investment and practices that pose a threat to US national security and foreign policy interests in the region.”

Washington outlines different concerns for the two countries, with Rwanda facing a broader range of eligibility questions.

The USTR cites trade and investment barriers, weaknesses in the rule of law, political pluralism, internationally recognised workers' rights, human rights and threats to American national security and foreign policy interests.

For South Africa, the administration points to barriers affecting American trade and investment, corruption and concerns surrounding US national security and foreign policy interests.

Greer, however, indicated that Washington remains open to engagement, urging both governments to take the necessary steps to address the concerns before the planned termination takes effect.

South Africa faces the biggest potential trade disruption as AGOA's largest beneficiary, having exported approximately $1.7 billion (Sh220.9 billion) worth of goods to the US under the programme in 2025.

Its duty-free exports include vehicles, agricultural products, clothing and manufactured goods, making continued access to the American market particularly important for its exporters.

Pretoria has been pushing to preserve the arrangement, with Trade, Industry and Competition Minister Parks Tau previously saying the government had submitted proposals addressing Washington's concerns and remained open to negotiations.

Rwanda, meanwhile, has previously experienced restrictions under the programme.

In 2018, Washington suspended duty-free treatment for its apparel exports after Kigali restricted imports of second-hand clothing from the US.

Established in 2000, AGOA provides eligible sub-Saharan African countries with duty-free access to the American market for more than 1,800 products, supporting exports, manufacturing and employment across the continent.

The programme was extended through December 31, 2026, after Trump signed a one-year reauthorisation in February, leaving participating countries with a limited period to benefit from the arrangement.