South Africa has asked the United States to consider an early extension of the African Growth and Opportunity Act (AGOA) as it would encourage new investments on the continent.

Trade, industry & competition minister Ebrahim Patel said the expeditious renewal trade agreement, would be beneficial not only for the country, but also Africa’s industrialisation, Business Day newspaper reported.

The trade pact gives South Africa and other sub-Saharan African countries preferential access to US markets.   

Patel said the request was made during a visit to the US earlier this month by South African officials to discuss the trade treaty and finalise arrangements for an AGOA meeting to be held in South Africa this year.    

"If we extend AGOA largely in its current form, we can incrementally improve the terms over the next few years,” Patel said.   

“Many African countries are keen on an early extension because it gives investors certainty to commit additional investment on the continent.”   

Patel was accompanied by his counterpart, Finance Minister Enoch Godongwana, on the trip to meet with US lawmakers and business executives to lobby for South Africa to retain its eligibility to export goods duty-free to the US under AGOA.   

Several US lawmakers have called on President Joe Biden’s administration to reconsider whether South Africa should continue to benefit from AGOA.    

Among them is Senator Chris Coons, whom Godongwana and Patel met, the AGOA.info newsletter said on its website.   

The officials were keen to dispel what the South African government has termed misinformation about its stance toward Russia’s war in Ukraine.   

South Africa has maintained what it terms a non-aligned position toward the invasion, a stand that has irked Washington.

Tensions spiked earlier this year when the US ambassador to South Africa, Reuben Brigety, accused South Africa of supplying arms to Russia, an allegation Pretoria denied.  

(Editing by Brinda Darasha; brinda.darasha@lseg.com)