U.S. signs $625 million Egypt deal as it cuts South Africa trade benefits

The U.S. has signed a $625 million economic framework agreement with Egypt while simultaneously moving to end South Africa's duty-free trade access under AGOA, reflecting a strategic shift in its African policy amid growing Chinese and Russian influence. The five-year deal with Egypt covers water management, clean energy, healthcare, artificial intelligence, and agriculture, and was signed by Egyptian officials and U.S. Chargé d'Affaires Robert Silverman. Meanwhile, Washington announced plans to terminate South Africa's AGOA benefits from January 1, 2027, citing practices inconsistent with eligibility criteria; South Africa exported about $1.7 billion in duty-free goods to the U.S. in 2025. Egypt maintains ties with multiple powers, including China and Russia, which funds 85% of its El Dabaa nuclear plant. The U.S. also recently released $320 million in military aid to Egypt after waiving human rights conditions, part of broader efforts to counter rivals and secure strategic partnerships across Africa.