Nigeria and South Africa have created the South Africa-Nigeria Joint Ministerial Advisory Council on Industry, Trade, and Investment, a bilateral initiative to strengthen economic cooperation between two of Africa’s largest economies.
South African President Cyril Ramaphosa announced the council’s full operationalisation during the Nigeria-South Africa Business Roundtable in Cape Town, South Africa on Wednesday, calling it a pivotal step towards providing “a conducive environment for improved trade and investment.”
The council, initially launched in November 2021 during the 12th Bi-National Commission meeting in Abuja, is led by South Africa’s Department of Trade, Investment, and Competition and Nigeria’s Federal Ministry of Industry, Trade, and Investment, laying the groundwork for deeper collaboration between the nations.
“We do recognise that challenges still exist within our respective operating environments that limit the expansion of investment and sometimes impact on the operations of companies. Through the Council, we hope to ensure the efficient resolution of trade and investment-related challenges,” Ramaphosa said.
The advisory council will focus on coordinating efforts between government ministries and private sector stakeholders in both countries, aiming to enhance trade opportunities beyond oil and gas.
South Africa’s imports from Nigeria in 2023 totalled $2.37 billion, in comparison to its exports which brought in $355.46 million, according to the United Nations COMTRADE database on international trade. Mineral fuels, oils, and distillation products accounted for 98.7 percent of all imported goods.
“South Africa runs a large trade deficit with Nigeria, mainly due to oil and gas imports. We need to diversify our trade to ensure a mutually beneficial partnership…We are greatly encouraged by the presence of South African companies in Nigeria, just as we welcome Nigerian companies in South Africa,” Ramaphosa said.
This comes as South Africa unveiled new visa regulations for Nigerians granting the country’s businessmen and tourists a five-year multiple entry visa to South Africa including the option to apply for visas without submitting their passports.
Meanwhile, Nigerian President Bola Tinubu reiterated his administration’s commitment to creating a stable and secure business environment to court investors during the meeting. He assured South African investors of reforms improving economic conditions and encouraged reciprocal openness for Nigerian businesses in South Africa.
Describing the relationship between the two nations as one of interdependence, President Tinubu said, “Nigeria and South Africa are conjoined twins tied by the hips, not just for survival but for shared prosperity.”
South Africa backs Nigeria’s G20 bid, eyes lithium reserves
Also, President Ramaphosa has disclosed that South Africa will “keenly” support the bid of Nigeria, “a valued sister country,” to become a member of the G20 club of the world’s major economies.
Ramaphosa gave the promise at the official launch of South Africa’s presidency of the G20 in Cape Town, a few minutes before he received President Tinubu at Tuynhuys to co-chair the 11th Bi-National Commission between Nigeria and South Africa in Cape Town on Tuesday.
Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, revealed this in a statement he signed Wednesday.
The South African leader reiterated this stance during his tete-a-tete with President Tinubu and the expanded meeting with officials of both countries at the BNC.
The G20, or Group of Twenty, is a premier international forum for economic cooperation, bringing together the world’s major advanced and emerging economies.
Established in 1999, it comprises 19 individual countries and the European Union, representing about 85 percent of global GDP, 75 per cent of international trade, and two-thirds of the global population.
In 2023, the African Union was granted permanent membership. South Africa and the AU are Africa’s only representatives in the G20.
The group addresses critical global issues, including economic growth, financial stability, climate change, sustainable development, and trade.
G20 summits are attended by heads of state, finance ministers, and central bank governors, fostering dialogue and coordinated action.
The presidency rotates annually among its members, with the host country setting the agenda and priorities for that year. South Africa currently holds the Presidency of the G20.
Consequently, its support for Nigeria’s membership in the bloc is crucial.
Ramaphosa said other key African countries should also be admitted to the club “so that we can raise the voice from Africa, the neglected continent for the longest time.”
He noted that South Africa had been the lone voice for Africa in the G20 before the admission of the African Union last year after his country had lobbied for it to become a member.
“We have a voice, we have a presence, and we will be the biggest growth story in years to come.
“Our population is going to grow by leaps and bounds, and therefore, as a continent, we are going to be a big noise, and we want that big noise to be recognised in the form of countries that will be part of the G20 right now,” he said at the official launch of the G20 presidency.
