South Africa has proposed a strategic trade deal to the United States that would see Pretoria import 75–100 petajoules of liquefied natural gas (LNG) annually over the next decade in exchange for continued duty-free access for its vehicle exports to the U.S. market. The offer, announced in a statement by Minister in the Presidency Khumbudzo Ntshavheni and published by the South African government news agency on Sunday, is part of broader efforts to shield South Africa’s key automotive industry and mend strained relations with Washington.
According to the statement, the proposed LNG purchase would unlock an estimated $900 million to $1.2 billion in trade per year, totaling $9 billion to $12 billion over 10 years, based on current energy prices. The gas would be sourced from U.S. suppliers and is expected to support South Africa’s efforts to diversify its energy mix amid ongoing electricity shortages. The automotive sector accounts for roughly 5% of South Africa’s GDP and 14% of its manufacturing output. The United States is a key export market, with South African car manufacturers relying heavily on duty-free provisions under the African Growth and Opportunity Act (AGOA) and other bilateral agreements.
South African officials view the proposal as a mutually beneficial deal that promotes U.S. energy exports while helping Pretoria retain critical access to the American market. The deal is also seen as a potential reset in bilateral ties, which have soured in recent years over divergent foreign policy positions, including South Africa’s stance on Russia and the Israel-Palestine conflict. Under former U.S. President Donald Trump, South Africa faced the threat of a 30% tariff on vehicle exports, a move that could have crippled a major segment of its economy.
While the Biden administration has not yet responded to the proposal, it comes as both nations prepare for AGOA negotiations ahead of the agreement’s 2025 expiration. South Africa’s government hopes the LNG deal will serve as a new model for energy-security diplomacy and trade-driven development. Analysts suggest Washington may weigh the offer carefully, as it aligns with its objectives of expanding U.S. LNG exports and strengthening partnerships with African nations amid growing Chinese and Russian influence on the continent.
