Nigeria and South Africa have taken a significant step toward deepening their economic collaboration by fully operationalizing the Joint Ministerial Advisory Council on Industry, Trade, and Investment. This initiative aims to address barriers to trade and foster investment between the two largest economies in Africa.
The decision was announced by South African President Cyril Ramaphosa during the Nigeria-South Africa Business Roundtable held in Cape Town on Tuesday. The event brought together business leaders, government officials, and trade stakeholders from both nations to discuss ways to enhance economic ties.
Speaking at the roundtable, Nigerian President Bola Tinubu reassured South Africa of Nigeria’s openness to business. He emphasized the country’s ongoing reforms aimed at ensuring economic stability, security, and the rule of law to attract investors. Tinubu also urged South Africa to create more opportunities for Nigerian businesses, noting that mutual cooperation would drive prosperity.
“Nigeria and South Africa are co-joined twins tied by the hips not only for survival but for the prosperity of the people,” Tinubu stated. He pledged that Nigerian officials would continue working closely with their South African counterparts to implement agreements under the Bi-National Commission framework.
Ramaphosa highlighted the Council’s role in resolving trade challenges and diversifying economic relations beyond oil and gas. He acknowledged the trade imbalance, noting that South Africa imports significant oil and gas from Nigeria, creating a trade deficit. He emphasized the importance of addressing these disparities for a more balanced partnership.
He said, “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.”
Ramaphosa acknowledged the strategic importance of both nations in their respective regions and the need to diversify trade relations to move beyond oil and gas dependency.
“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.
“We do recognise that challenges still exist within our respective operating environments that limit the expansion of investment and sometimes impact the operations of companies,” he said.
At the roundtable, both nations also revisited the pending Memorandum of Understanding on the Early Warning Mechanism, which aims to address violence and criminal activities involving their citizens. Leaders committed to finalizing this agreement to ensure better security and cooperation.
