AGOA is positive news for auto repair industry

South Africa remains part of the African Growth and Opportunity Act (AGOA), a relief for the country’s automotive exports and the repair industry that depends on affordable parts.

Under AGOA, more than 1 800 South African products were exported duty-free to the United States. The Motor Industry Staff Association (MISA) welcomed the decision, noting that suspension of AGOA in 2025 caused vehicle and part exports to plummet by 55% to 80%, falling from R26.5 billion (Jan–July 2024) to R9.8 billion in 2025.

Martlé Keyter, MISA’s Chief Executive Officer: Operations, explained: “From the beginning of August 2025, South Africa was subjected to a 30% blanket tariff, which further increased the cost for US businesses importing vehicles from South Africa.” This placed South Africa at a disadvantage compared to other exporters paying 25%.

Economist Dawie Roodt emphasised that inclusion in AGOA is vital: “Government should remain neutral on international issues where the US are involved instead of taking an opposing position in the best interest of the economy.”

Political analyst Professor Piet Croucamp countered that tariffs were being used as punishment: “There is nothing wrong with South Africa’s foreign relationships. The country’s relationship with Iran for example, is insignificant when compared to other countries.”