By Johnathan Paoli
South Africa and Nigeria have reaffirmed their commitment to deepening economic ties and fostering mutual growth, emphasising the historic partnership between Africa’s two largest economies.
They have highlighted the necessity of enhancing trade relations and leveraging opportunities under the African Continental Free Trade Area.
Presidents Cyril Ramaphosa and Bola Ahmed Tinubu of Nigeria co-chaired the 11th Session of the South Africa-Nigeria Bi-National Commission (BNC), in Cape Town, marking 30 years of diplomatic relations.
The summit focused on boosting trade, encouraging investment and addressing continental challenges through united efforts.
“South Africa has always been open for Nigerian business, reflected in a number of investments and operations established in this country. But there is much more we need to do. We need to remove the remaining constraints to greater investment, just as we need to address some of the challenges that companies have experienced,” Ramaphosa said.
A key outcome of the BNC was the commitment to expanding bilateral trade and investment.
South African companies have made substantial investments in Nigeria, and both countries encouraged reciprocal efforts from Nigerian businesses.
Ramaphosa and Tinubu emphasised the creation of a more conducive business environment to attract investments in critical sectors such as mining, telecommunications, infrastructure and renewable energy.
Nigeria invited South Africa’s development finance institutions to co-finance major infrastructure projects, including railways, roads and ports.
Meanwhile, South Africa expressed its willingness to explore Nigeria’s oil and gas potential as part of a broader strategy to diversify economic collaboration.
The two nations agreed to intensify private-public partnerships and support joint ventures in areas like artificial intelligence, digital connectivity, and data governance, aiming to strengthen their technological capacities.
Additionally, the summit tackled global governance reforms, with both countries advocating for a more equitable United Nations Security Council and enhanced African representation in international decision-making.
While the BNC celebrated significant milestones, the leaders acknowledged challenges requiring immediate action, with trade imbalances and logistical barriers continuing to hamper economic integration.
To address these, the commission plans to enhance monitoring mechanisms for implementing agreements and develop strategies to boost mutual trade flows.
The summit also featured a business roundtable, where CEOs from both countries discussed opportunities to deepen economic engagement, with industry leaders lauding the initiative as a platform to foster partnerships and stimulate growth in key sectors.
The two countries also agreed to collaborate on programmes that address mutual challenges in food and nutrition security, strengthening meaningful digital connectivity, taking leadership in the development of AI, expanding digital literacy initiatives and prioritising data protection and online safety for all citizens.
In August 2024, South Africa exported R684 million and imported R6.33 billion from Nigeria, resulting in a negative trade balance of R5.64 billion.
Between August 2023 and August this year, the exports of South Africa have increased by R73.7 million from R610 to R684 million, while imports increased by R6.31 billion from R16.6 million to R6.33 billion.
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