South African business aims to increase trade and investment with Nigeria, given that trade flows from the West African nation are currently dominated by crude oil imports.
The South Africa-Nigeria Joint Ministerial Advisory Council on Industry, Trade and Investment (JMACITI) is a public private partnership launched by the two governments and business at the end of 2021, to highlight opportunities and address market access and operational issues between the countries.
The latest initiative under the JMACITI umbrella is a video initiated by South African business that offers a snapshot of South Africa’s operating environment and investment opportunities for Nigerian companies.
Speaking in the video, Lungisa Fuzile, Regional Chief Executive: South & Central Region, Africa Regions, of the Standard Bank Group, says: “When South Africa and, Nigeria are aligned, it becomes easy to pull the different parts of the continent together towards a common agenda.”
The two countries, which are among the biggest economies in Sub-Saharan Africa, need to work together for the continent to deliver more effectively on its Agenda 2063 and the African Continental Free Trade Agreement, he adds.
Lerato Mataboge, Deputy Director General of the Department of Trade, Industry and Competition, says: “South Africa offers a predictable environment to investors. So our regulations, our policies, even legislation, are quite accessible.
“South Africa is very open to investments from the rest of Africa. In fact, intra-African investment is a policy priority of ours,” she says, adding that the current reform of South Africa’s visa landscape will be an enabler for greater trade and investment.
Sola Adegbesan, President of the South Africa-Nigeria Business Chamber in Johannesburg and head of Global Markets Sales for the Standard Bank Group, says that despite the advantages between the two countries in both directions, the number of Nigerian companies invested in South Africa is “not as much as you would expect”.
“We at the Chamber expect that number could grow significantly, and we’re more than happy to welcome more Nigerian companies and help to facilitate some of these investment initiatives.” He states that in addition to investment opportunities, there is a large pool of investment capital in South Africa that Nigerian companies could tap into.
Nigerians interested in South Africa must be aware of the country’s investment priorities and the rules and regulations underpinning trade and investment transactions, to ensure a smooth and successful experience, speakers said.
Bongi Kunene, Managing Director of The Banking Association South Africa (BASA), explains: “It is critical for the success of trade between the countries to ensure that correct processes are followed throughout the value chain. If there are any issues, the rules must be clear.”
Other interviewees spoke about the need to make it easier to get visas to travel between the countries. They also highlighted the need for prospective business partners to work together to improve trust and trade between the two countries, for the benefit of all.