SOUTH AFRICA OPEN FOR BUSINESS FOR NIGERIANS @KASIBCNEWS
President Cyril Ramaphosa SA-Nigeria Business Roundtable Remarks on the occassion of the working visit by President Bola Ahmed Tinubu, 3 December 2024, Tuynhuys, Cape Town
His Excellency, the President of Federal Republic of Nigeria, Mr Bola Ahmed Tinubu,
Minister of Trade, Industry and Competition of South Africa, Mr Parks Tau,
Minister of Trade and Industry of Nigeria, Dr Jumoke Oduwole,
Ministers and Deputy Ministers,
High Commissioners,
Members of the Diplomatic Corps
Leaders of business,
Distinguished guests,
It gives me great pleasure to address this South Africa-Nigeria Business Roundtable.
We see the purpose of this roundtable as three-fold: firstly, to deepen economic cooperation; secondly, to provide a platform to address challenges; and, thirdly, to explore strategies for unlocking the full potential of trade and investment between the two countries.
Nigeria and South Africa enjoy strong diplomatic ties and expanding trade and investment flows.
The strategic positioning of both countries in their respective regions presents enormous opportunities for collaboration.
In West Africa, Nigeria is the main destination for South African exports and investments.
But more needs to be done to improve trade and commercial relations between the two countries.
South Africa runs a large trade deficit with Nigeria, mainly due to its import of Nigerian oil and gas.
There is a 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.
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.
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.
During my State Visit to Nigeria in 2021, the Ministers of Trade launched the Joint Ministerial Advisory Council on Industry, Trade and Investment.
Today, we agreed on the full operationalisation of the Council.
This will support a conducive environment for improved trade and investment.
Through the Council, we hope to ensure the efficient resolution of trade- and investment-related challenges.
As governments, we have committed in our Bi-National Commission to create an enabling environment for doing business in our respective countries.
We have an opportunity to drive industrialisation.
In the automotive sector, for example, we can create value chains in the manufacture of components and electric motorcycles.
In critical minerals, we can use lithium to manufacture electric batteries.
There is also much opportunity for cooperation on pharmaceuticals.
Our two countries are in a strategic position to benefit from the rapid growth of clean energy manufacturing industries.
South Africa has developed a Just Transition Framework and an Investment Plan that anticipates massive investments in renewable energy and the green economy over the next few years.
As part of the broader global transition to a low-carbon economy, we must leverage the abundant natural resources that exist in our countries to promote green industrialisation.
We should leverage each other’s capabilities in minerals processing.
We must work together to ensure critical minerals are beneficiated at source.
We call on business to support and involve themselves in these initiatives.
Our development finance institutions can work together to support infrastructure development.
South Africa has embarked on a massive infrastructure investment drive that encompasses projects in electricity generation and transmission, bulk water supply, roads, railways, bridges and ports.
We need to explore how we can mobilise our respective capabilities and resources to develop social and economic infrastructure in our countries
The African Continental Free Trade Area, once fully implemented, will enable a massive growth in intra-African trade and investment.
We must identify what products can be traded among ourselves that we are now importing from elsewhere.
Given the size of a common African market, we can build substantial industries – and integrated regional value chains – merely on the basis of what we sell to each other.
Many economies are reconfiguring their supply chains, but they are also reconfiguring their supply chains as well.
They are bringing them closer to home to promote economic resilience and address strategic vulnerabilities.
We need to do the same.
We encourage the private sector to identify opportunities for sourcing key inputs and products from each other to boost bilateral trade and industrial development.
Let me conclude by congratulating Dr Ngozi Okonjo-Iweala on her reappointment as the Director-General of the World Trade Organisation.
This provides continuity as we prepare for the 14th WTO Ministerial Conference, to be held in March 2026 in Cameroon.
South Africa and Nigeria need to work closely to shape a strong developmental agenda that ensures better terms for integration of Africa in global trade.
South Africa and Nigeria seek the same things.
We seek a global economic order that is fair, inclusive and rules-based.
We seek to develop our people by expanding investment and trade ties with partner countries.
We see in the relationship between South Africa and Nigeria enormous opportunities to pursue these objectives together.
We invite businesses, state-owned companies, development finance institutions and others to be part of this exciting journey to build a prosperous Africa that meets the needs of all its people.
