The United States intends to terminate South Africa’s participation in the African Growth and Opportunity Act (AGOA) from 1 January 2027, potentially changing the trading conditions for South African businesses exporting to the American market.

In a statement issued on 2 November by the Office of the United States Trade Representative, US Trade Representative Ambassador Jamieson Greer confirmed that President Donald Trump had notified Congress and the governments of South Africa and Rwanda of his intention to remove both countries from the trade preference programme.

The decision follows an annual review of sub-Saharan African countries’ eligibility for AGOA. According to Greer, the US administration believes that the two governments are engaging in practices that are inconsistent with the programme’s eligibility criteria.

In South Africa’s case, the US cited concerns about barriers to American trade and investment, corruption and practices it considers threats to its national security and foreign policy interests in the region.

The statement did not identify specific examples of these concerns or outline individual trade measures that South Africa would need to change.

What the Decision Could Mean for South African Exporters

AGOA provides eligible sub-Saharan African countries with preferential access to the US market. Losing eligibility could mean that South African products currently benefiting from the programme no longer qualify for the same preferential import treatment.

For exporters, this could create additional pressure on pricing and competitiveness. If affected products become more expensive to import into the US, American buyers may reconsider their sourcing arrangements, negotiate lower prices or look towards alternative suppliers.

The potential impact extends beyond the businesses directly involved in exporting. South Africa’s international trade network connects manufacturers, agricultural producers, transport operators, freight forwarders, ports and distribution businesses.

A reduction in export demand could therefore affect activity across these connected industries. Manufacturers may need to reconsider production volumes, while logistics providers could face changes in cargo demand and established shipping routes.

The automotive industry is one area worth monitoring. Vehicle manufacturing relies on international supply chains, with components and finished products moving between production facilities and export markets. Any change to the commercial conditions of US-bound exports could influence sourcing decisions, production planning and the competitiveness of South African manufacturing.

Agricultural exporters could also face additional uncertainty, particularly where businesses have established long-term relationships with American buyers based on existing trade conditions.

Trade Uncertainty Puts Pressure on Supply Chain Planning

The proposed termination also raises questions about the longer-term predictability of South Africa’s trade relationship with the United States.

International supply chains depend on more than the physical movement of goods. Businesses make investment, procurement and production decisions based on expected market access, import duties, regulatory requirements and the reliability of trading relationships.

Changes to these conditions can influence where companies manufacture products, which suppliers they use and which markets they prioritise.

For South African exporters, the possibility of losing AGOA benefits means that businesses may need to review their exposure to the US market and assess whether their current pricing and distribution arrangements remain commercially viable.

Alternative markets may provide opportunities, but establishing new export relationships takes time. Businesses must account for market demand, regulatory requirements, transport infrastructure and the costs associated with reaching new customers.

A Decision With Implications Beyond Trade Policy

The US announcement highlights how international political and trade relationships can influence commercial decisions across entire supply chains.

Although the intended termination is not due to take effect until January 2027, the uncertainty surrounding South Africa’s eligibility could already influence how businesses approach future contracts, investment and export planning.

For South Africa, maintaining access to international markets will remain important to the competitiveness of its manufacturing and agricultural industries. The challenge will be managing the potential disruption while maintaining reliable export channels and strengthening relationships with alternative trading partners.

The outcome of further engagement between the two governments will be important in determining whether South Africa’s participation in AGOA can be preserved or whether exporters will need to prepare for a different trading environment from 2027.

As fuel prices place growing pressure on South Africa’s supply chains, SPAR highlights the importance of efficient distribution, energy management and reliable access to everyday essentials.

Rising fuel prices are placing additional pressure on South Africa’s grocery supply chains, increasing the cost of moving products from suppliers to distribution centres and ultimately to supermarket shelves. For retailers, the challenge is balancing these pressures with the need to maintain product availability, quality and value for consumers.

According to the Road Freight Association (RFA), fuel accounts for between 35% and 55% of road transport operators’ operating costs, depending on vehicle type, route and operating conditions. Sustained increases therefore have implications beyond the transport sector, affecting businesses and consumers across the value chain.

“Every product on a supermarket shelf has a journey behind it. When fuel costs rise, the impact extends beyond the trucks transporting goods. It reinforces the importance of how efficiently we manage our entire distribution network, from vehicle fuel consumptions, route management and vehicle utilizations and order planning to maintaining reliable deliveries to stores,” says Arno Haigh, National Logistics Executive at The SPAR Group.

“While we cannot control external cost pressures, we can focus on improving operational efficiencies and ensuring that our distribution network continues to support retailers and the communities they serve.”

Managing Costs Beyond the Road

At SPAR, managing supply-chain costs extends beyond transportation. Energy resources, distribution infrastructure and operational resilience also play an important role in maintaining an efficient supply network.

As part of its ongoing investment in energy efficiency, SPAR has installed solar plants at all six of its South African distribution centres. The programme began at the South Rand distribution centre in 2017 and has since expanded across the network peaking over 10MW.

These investments help reduce reliance on grid electricity, manage energy costs and strengthen operational resilience.

However, efficiency is not only about managing costs. It also means ensuring that products reach stores in good condition, minimising avoidable food losses and maintaining reliable supply, particularly for fresh and perishable goods that require effective cold-chain management.

Reducing Food Loss Protects Value

Food loss remains an important consideration in the grocery supply chain. When products are damaged, spoil or become unsaleable before reaching consumers, the resources invested in producing, storing and transporting them are also lost.

Reducing these avoidable losses can improve operational efficiency, protect product availability and help limit unnecessary costs across the value chain.

For SPAR, reliable distribution and effective stock management are therefore central to supporting its network of independently owned stores and ensuring that retailers can continue meeting customer needs.

Connecting Communities to Essential Groceries

The final stage of the supply chain is equally important. Access to affordable groceries depends not only on the cost of transporting products but also on the availability of well-replenished stores within communities.

SPAR’s network of neighbourhood retailers, including stores serving rural, township and peri-urban communities, plays an important role in connecting households to essential groceries.

Maintaining reliable deliveries across these diverse locations requires effective distribution planning, particularly where distances, road infrastructure and operating conditions present additional challenges.

A dependable supply network helps retailers maintain stock availability while reducing the need for consumers to travel longer distances in search of everyday essentials.

Balancing Rising Costs With Consumer Value

The latest Statistics South Africa Consumer Price Index shows that annual transport inflation reached 10.8% in September 2026, with fuel inflation at 27.9%, compared with food and non-alcoholic beverage inflation of 1.2%.

While higher fuel prices do not automatically translate into equivalent increases in grocery prices, they add pressure across the supply chain. The extent of that impact depends on several factors, including supplier costs, transport strategy and the ability of businesses to manage operational efficiencies.

“As we mark Transport Month, the focus should not only be on the rising cost of moving goods, but also on how we make supply chains more efficient and resilient. For SPAR, that means continuously looking at ways to manage costs, reduce avoidable risks and support reliable distribution to our retailers,” concludes Haigh.

“Ultimately, an efficient supply chain is about more than moving products. It is about helping ensure that communities have reliable access to the groceries they need.”

Written by J2 Software sales director Roy Alves

It does not matter how much a business has invested in securing its own network if an attacker can walk in through a supplier, service provider or SaaS application with legitimate access. Your weakest supplier could be your biggest cyber risk.

In today’s interconnected supply chains, the security of a business increasingly depends on organisations it does not control, may barely know, and may never have considered part of its cyber security perimeter.

This is not a theoretical problem for South African businesses. Third-party risk was identified as the leading concern by 60% of South African CISOs in the 2026 ITWeb Brainstorm CISO Survey, while PwC’s 2026 Digital Trust Insights research found that only 6% of South African organisations consider themselves very capable of managing supply chain vulnerabilities.

The uncomfortable part is that supply chain businesses can have hundreds or even thousands of suppliers, and every one of those relationships potentially introduces another point of exposure.

The risk becomes even harder to manage because suppliers have suppliers of their own. A manufacturer, distributor, retailer or logistics company may depend on technology providers, outsourced service companies, contractors and software platforms, all of which may have some level of access to its systems or information.

Somewhere in that chain there may be a smaller business with access to an email account, application, shared platform or corporate network that has security controls nowhere near those of the organisation ultimately carrying the risk. The bigger the ecosystem becomes, the harder it is to know exactly where the exposure sits.

Cloud and SaaS have made this trust chain even longer. A business may rely on Microsoft 365 for email, a cloud platform for financial systems, a SaaS application for customer management, another service for logistics and an external provider for IT support. These systems are often connected through APIs and integrations, creating relationships that are easy to establish but surprisingly difficult to understand.

The security of an application matters, but so does what it can access. An organisation can carefully assess the security of a SaaS provider while overlooking the permissions granted to the application itself, potentially giving a compromised service access to sensitive data, mailboxes, files or business systems.

There is another problem, and it is often hiding in plain sight. Business users can introduce cloud applications without waiting for IT, signing up for services within minutes and connecting them to corporate data. Marketing, finance, sales and operations teams may all have legitimate reasons for doing so, but the organisation can quickly lose visibility of which applications are connected to corporate identities and information.

This is often referred to as shadow SaaS. What begins as a useful productivity tool can quietly become another part of the attack surface, particularly when nobody knows who still has access to it or what happens when an employee leaves.

This is where traditional supplier due diligence starts to fall short.

A questionnaire completed once a year does not tell you whether a supplier has subsequently suffered a breach, changed its infrastructure, added another subcontractor, altered access permissions or introduced another cloud service into the environment. Nor does it necessarily tell you what happens when that supplier depends on another provider.

The real question is not simply whether a supplier is secure, but how far the trust relationship extends. Critical suppliers need to be identified, privileged access controlled, cloud and SaaS connections understood and third-party accounts monitored, while access should disappear when the business relationship ends.

Where a supplier is genuinely critical, organisations also need to understand how they would continue operating if that supplier suffered a cyber incident, ransomware attack or prolonged outage.

Addressing third party risk requires continuous visibility across endpoints, cloud environments, Microsoft 365, SaaS platforms and the wider digital estate. J2’s managed security services and Cyber Resilience Framework are designed to give organisations greater visibility and control across users, email, data, machines and internet facing assets, helping identify unusual activity, compromised accounts and suspicious access.

The objective is not simply to monitor what happens inside the organisation, but to identify the signs that something connected to it has become a security problem, giving IT and security teams an opportunity to respond before a supplier compromise becomes a business compromise.

The answer is not to stop using suppliers, cloud services or SaaS. That would be neither realistic nor commercially sensible. The answer is to understand where trust exists, what that trust allows someone to access and what the consequences would be if it were abused.

Every supplier, SaaS platform, integration and business partner effectively extends a company’s digital footprint. Cyber security is no longer just about defending the systems a company owns, it is about understanding the ecosystem on which the business depends. For supply chain companies, that ecosystem is now part of the attack surface, and ignoring it does not make the risk disappear.