SADC and USA to Hold Dialogue over AGOA Ahead of 45th SADC Summit
On 13 August 2025, the SADC and USA will hold a Dialogue ahead of the 45th SADC Ordinary Summit 2025 (#SADC2025). In light of Trump’s ‘aggressive foreign policy’, tariffs and the Africa Growth and Opportunity Act (AGOA) are expected to feature prominently. On the eve of the deadline of 1 August 2025, US President Trump publicized a new schedule of tariffs.
Last year in April, SADC Ambassadors led by SADC Executive Secretary Elias Magosi converged in Washington DC to have a dialogue with the USA. It was on that occasion that the idea of establishing SADC-USA Forum came to fruition.
#AGOA is extremely important for several SADC member states. For instance, it allows South African vehicles to enter the US market while Lesotho and Madagascar exports apparel to the US. South Africa appears to have been singled out due to its affiliation to #BRICS and alleged ‘discriminatory treatment of white people.’
| No. | SADC Country | Trump’s Tariff 2 April 2025 | Trump’s Tariff 31 July 2025 |
|---|---|---|---|
| 1 | Angola | 32 | 15 |
| 2 | Botswana | 37 | 15 |
| 3 | Comoros | 10 | 10 |
| 4 | DR Congo | 11 | 15 |
| 5 | Eswatini | 10 | 10 |
| 6 | Lesotho | 50 | 15 |
| 7 | Madagascar | 47 | 15 |
| 8 | Malawi | 17 | 15 |
| 9 | Mauritius | 40 | 15 |
| 10 | Mozambique | 16 | 15 |
| 11 | Namibia | 21 | 15 |
| 12 | Seychelles | 10 | 10 |
| 13 | South Africa | 30 | 30 |
| 14 | Tanzania | 10 | 10 |
| 15 | Zambia | 17 | 15 |
| 16 | Zimbabwe | 18 | 15 |
Madagascar is the host country for the 45th SADC Summit and is rather relieved that its US tariff has decreased from 47% to 15%. However, the impending expiry at the end of September 2025 is creating uncertainty that is putting further investment in the textile sector on hold. The textile industry is a major foreign currency earner and employer in Madagascar as apparel exports to US exceeded USD 700 million in 2024.
Several countries have negotiated or are in the process of negotiating a bilateral deal with the USA. In March 2025, Madagascar sent a high-level delegation to the USA. The delegation was led by Malagasy Minister of Industry and Commerce David Ralambofiringa and was composed of representatives of the private sector such as GEM, GEFP, MAZAVA and even US firms doing business in Madagascar. Malagasy Minister of Mines Olivier Rakotomalala was also part of the delegation as well as Malagasy Ambassador to US Lantosoa Rakotomalala.
In the USA, the Malagasy delegation met with the American Apparel & Footwear Association (AAFA), the African Coalition for Trade (ACT) and several congressmen. During a meeting with Senator Ron Wyden, Minister Rakotomalala underlined that Madagascar is willing to supply the USA with #CriticalMinerals. For instance, the Base Toliara mine produces titanium and Rare Earth Elements (#REE) which are used in aerospace and defense.
Certain analysts observe that African countries would be able to exercise greater leverage if they negotiate as a regional bloc such as SADC, or better still as a continental bloc by forming a united front under #AfCFTA. Otherwise, most African economies are just too small to be of consequence to sway American policy.
At the same time, countries are stepping up efforts to diversify the trade destinations and investment sources to avoid over reliance on a single market or region. In that regard, Madagascar initiated prospective missions to UAE and had the opportunity to welcome French President Macron recently.