The United States Senate voted 90-6 in favour of extending the African Growth and Opportunity Act (AGOA) to the end of 2028, providing South Africa’s automotive sector duty-free access to the US market.
The agreement has been a valuable pillar of the local economy, and the automotive sector is one of its largest beneficiaries.
Following recent uncertainty, progress has been made towards extending the AGOA, offering a measure of reassurance to automotive sector workers who rely on this stable access to a major market.
The decision has been welcomed by the Motor Industry Staff Association (MISA), a major automotive sector trade union.
It said that the progress brings encouraging news for South African exporters and the workers whose livelihoods depend on healthy trade.
“This is good news for workers and for the South African economy. Trade that flows freely means jobs are secure,” noted Martlé Keyter, MISA’s CEO of Operations.
“Every vehicle and every component that leaves our shores supports a chain of employment that reaches right into our dealerships and workshops. Anything that strengthens South Africa’s place in global trade is something workers can welcome.”
Despite most of the emphasis falling on the agricultural exports and vehicle manufacturing, MISA believes that the benefits of extending AGOA reach deep into the local retail motor sector.
It said that a strong automotive export trade sustains demand across the entire value chain, supporting dealerships, workshops, distribution, and other sector-relevant services that employ hundreds of thousands.
“When our exporters can trade with confidence, the whole industry benefits and so do the workers and families who depend on it,” the union declared.
“MISA is committed to championing the interests of workers in the motor industry and to supporting the growth of a sector that is a vital source of employment and opportunity for South Africans.”
It concluded, saying stable trade leads to secure jobs, which is what matters most for South Africa’s automotive sector workers.
Local manufacturing sector could use a hand
South Africa’s manufacturing sector contracted year-on-year from June 2025 to June 2026, and quarter-on-quarter so far this year, with the automotive manufacturing sector playing a big role.
According to Statistics South Africa, overall manufacturing declined 1.7% from mid-2025 to mid-2026, and 1.5% from the first quarter of the year to the second.
Motor vehicles and transport equipment manufacturing declined 5.3% year-on-year and 3.1% quarter-on-quarter in June 2026.
A closer look at sales data from the Automotive Business Council (Naamsa) shows that bakkie exports are entirely to blame for the slump.
South Africa’s passenger vehicle manufacturing remained resilient and expanded its global footprint this year, despite difficult shipping conditions and other global headwinds.
After starting the year with a minor year-on-year contraction, passenger vehicle exports broke into positive territory for the first time in April and stabilised in May.
By the end of July, cumulative passenger vehicle exports reached 155,829 units, securing a healthy 3.76% year-on-year growth compared to the 150,182 passenger units exported by this same point in 2025.
In contrast, Light Commercial Vehicle (LCV) exports, including popular bakkies like the Toyota Hilux and Ford Ranger, are experiencing a sustained crisis in international markets.
After starting the year with a 1.5% year-on-year improvement, February saw bakkie exports plummet 54.7%, dragging year-to-date sales 31.04% lower.
By the end of July 2026, cumulative bakkie exports stood at 57,366 units, representing a massive 31.15% year-on-year collapse from the 83,321 LCV units exported during the first seven months of 2025.
South Africa’s bakkie export collapse can be attributed to the sudden decline in sales by several manufacturers, including Nissan, which sold its plant to Chery.
Furthermore, shifting international demand and intense local port and shipping logistics bottlenecks continue to restrict bakkie manufacturers’ ability to supply overseas markets.
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