Cape Town: President Cyril Ramaphosa has underscored the robust diplomatic relations and growing trade and investment flows between South Africa and Nigeria. He highlighted the strategic positioning of both nations within their respective regions, pointing to significant opportunities for collaboration.

According to South African Government News Agency, South Africa and Nigeria are celebrating 30 years of diplomatic relations, established in February 1994. During a roundtable discussion in Cape Town, President Ramaphosa emphasized Nigeria’s role as a primary destination for South African exports and investments in West Africa. However, he noted that further efforts are needed to enhance trade and commercial relations between the two countries.

President Ramaphosa pointed out South Africa’s large trade deficit with Nigeria, primarily due to oil and gas imports. He stressed the importance of diversifying trade to ensure a mutually beneficial partnership. The presence of South African and Nigerian companies in
each other’s countries was welcomed, though challenges remain in their operating environments.

The President referenced his 2021 State Visit to Nigeria and the subsequent launch of the Joint Ministerial Advisory Council on Industry, Trade and Investment by Ministers of Trade. South Africa and Nigeria have agreed on the Council’s full operationalisation to create a conducive environment for improved trade and investment, aiming to efficiently resolve trade- and investment-related challenges.

In sectors like automotive and critical minerals, Ramaphosa highlighted potential value chains in manufacturing and opportunities for cooperation in pharmaceuticals and clean energy industries. He mentioned South Africa’s Just Transition Framework and Investment Plan, which anticipates significant investments in renewable energy and the green economy.

Ramaphosa called for leveraging natural resources to promote green industrialisation and encouraged businesses to engage in these initiatives. He mentioned the potential f
or collaboration between development finance institutions in supporting infrastructure development.

The President outlined South Africa’s infrastructure investment drive, covering electricity generation, bulk water supply, and transportation projects. He emphasized exploring capabilities and resources to develop social and economic infrastructure in both countries. The African Continental Free Trade Area, once fully implemented, is expected to significantly boost intra-African trade and investment, encouraging identification of products that could be traded within the continent.