Nigeria, South Africa activate advisory council to boost trade, investment

By Kunle Sanni

Nigeria and South Africa have fully operationalized the Joint Ministerial Advisory Council on Industry, Trade, and Investment, a strategic move aimed at deepening economic cooperation between the two largest African economies.

South African President Cyril Ramaphosa announced the milestone on Tuesday during the Nigeria-South Africa Business Roundtable held in Cape Town.

The announcement was confirmed in a statement by Bayo Onanuga, Special Adviser to the Nigerian President on Information and Strategy.

Speaking at the event, Nigerian President Bola Tinubu reiterated his administration’s commitment to creating an enabling environment for businesses. He assured South African investors of stability, security, and adherence to the rule of law, urging reciprocal actions to support Nigerian businesses in South Africa.

“Nigeria and South Africa are co-joined twins tied by the hips—not only for survival but for the prosperity of their people,” Tinubu stated. He added that Nigeria is undergoing “stringent but positive economic reforms” to foster sustainable development and attract investment.

“You have no better investment than in Nigeria. You cannot earn better returns on your investments elsewhere except in Nigeria,” Tinubu emphasized.

President Tinubu also pledged ongoing collaboration between Nigerian and South African officials to implement mandates outlined under the Bi-National Commission, a key framework for bilateral cooperation.

In his remarks, President Ramaphosa recalled that the Joint Ministerial Advisory Council on Trade was initially launched during his State Visit to Nigeria in 2021. The Council was established to address trade and investment challenges, align policies, and create a conducive environment for business growth in both countries.

“Today, we agreed on the full operationalization of the Council. This will support a conducive environment for improved trade and investment. Through the Council, we aim to efficiently resolve trade and investment-related challenges,” Ramaphosa said.

He also stressed the need to diversify trade relations beyond oil and gas, acknowledging South Africa’s trade deficit with Nigeria due to energy imports.

“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,” he noted.

Ramaphosa highlighted the significant presence of South African companies in Nigeria and expressed optimism about the increasing footprint of Nigerian businesses in South Africa.

However, he acknowledged the operational challenges faced by companies in both countries and emphasized the need to overcome them for expanded trade and investment.