For Nigerians, securing a visa to South Africa often proves to be a daunting task, marked by stringent requirements and protracted processing times.
However, the South Africa-Nigeria Business Chamber, a prominent business lobby group headquartered in Johannesburg, is striving to turn the tide in favor of smoother travel and enhanced trade relations between the two nations.
In an exclusive interview, Dianne Games, CEO of the chamber, sits down with Lolade Akinmurele, Deputy Editor at BusinessDay Nigeria, to shed light on ongoing efforts to ease travel barriers for Nigerians and South Africans alike, fostering stronger business and cultural ties.
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Q: Getting a visa to South Africa may be just as tough as getting into heaven. It’s been a grey area in the relationship between both countries. What are you doing in terms of easing the visa application process for Nigerian visitors to South Africa?
The visa issue between South Africa and Nigeria, as everyone knows, has been quite a thorny one. It’s problematic not just in terms of people traveling between the countries, but also because it’s symbolic in a way, of a lack of trust or other problems in the relationship and so it’s important to address it, not just for the travel process, which is important in itself, but also for the good of the greater relationship.
So what’s been happening? Certainly, a lot of the problems have been on the side of Nigerians not easily getting visas for South Africa. There’s been a lot of work done there. I know Nigerians think we’re just sitting back and just letting the problem happen.
But actually, the chamber has been very proactive in trying to solve this problem. We’ve been dealing with the Banking Association South Africa. They have a plan with various big private sector companies, talking to the government, talking to Home Affairs and various other government ministries. So there’s been a lot of work behind the scenes, and we are seeing this bearing fruit now, where people are getting longer-term visas. We are identifying and working better with groups wanting to come to conferences or for tourism, and also identifying companies that are regular travelers.
We find that a lot of the burden has been on people not giving the right documents.
I think we have to also look at how Nigerians must play their part in resolving this because they’re the ones who lose out. Nigerians use agents who often just do fraudulent documents. They don’t want to submit their bank statements. They don’t always put the right documents in. They apply with very short notice, and the mission is quite swamped. There’s a lot of applications a week, and things like this. So we feel that both sides need to play a role. Everybody needs to be responsible in this area. We can’t have people refusing to provide necessary documents. That’s what needs to be provided, even if you don’t agree with it, you know, I think that all countries can insist on that, and it’s the same vice versa.
We are finding a problem here with Nigerian visas for South Africans, the Nigerian visa is very expensive. $248 in rand terms is quite high. And also, we get three month visas on the whole and so you’re paying a big price, and you’re getting a short-term visa. Even for regular travelers, they make no distinction. At the moment, it is something we have raised. And we’re also trying to deal with business from this side as well, and also the turnaround times that are quite long here, you know, three to five weeks to get a visa.
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A lot of people are using visas on arrival as a result.
So I think we all have to look at what the issues are on both sides. And let’s streamline this thing. Everybody just wants a quick, predictable, efficient service. We don’t need all the drama around these visas, because we need to concentrate on the more positive parts of this relationship. And we are endlessly distracted by this distraction.
Q: With the right documents, would you say it’s easier to get a South African visa these days?
Yes, it is easier now. I think they’re moving towards almost pre-approving frequent travelers and granting longer-term visas. However, when an embassy faces pressure from high application volumes and insufficient staff, they need alternative solutions beyond just identifying the problem. Visa fees for Nigerians, for instance, are quite high. I can’t recall the exact cost of a South African visa, but agents are very active in this space, and their charges often make the process even more expensive.
Q: Let’s talk about the Nigerian businesses in your chamber. How many members do you have, and what percentage are Nigerian businesses?
There are two categories of Nigerian businesses here: those owned by Nigerians and foreign investments from Nigeria, like Access Bank and Dangote Group. Both are members, as are Flutterwave and Paystack. There’s also a packaging company we’re working on recruiting, but they’re not members yet.
We’ve found that many Nigerian companies don’t join, even though we can assist with visas and other issues thanks to our connections with diplomatic missions and governments. Instead, they tend to operate independently. That said, about 30% of our members are Nigerian businesses or individuals, and they are some of our most active participants.
We also have many South African businesses, like Standard Bank and Rosebank Capital, as members. However, overall membership numbers ebb and flow depending on Nigeria’s economic environment. Some South African companies have pulled out due to Nigeria’s challenging market, which makes it a tough sell at the moment.
Q: Several South African companies, including Shoprite and Mr. Price, have left Nigeria. Can you elaborate on why this is happening?
Yes, companies like little-known Nampak, which is actually Africa’s largest packaging company, and the more popular hospitality firm, Southern Sun have exited. The reasons vary but the elephant in the room has to do with the foreign exchange issues. The inability to repatriate funds easily is a significant challenge.
There have also been exits facilitated by debt and restructuring. Southern Sun, for instance, sold its Lagos hotel to address post-COVID debt, while Famous Brands recently closed 19 restaurants.
Some leadership shifts have also led to a scaling back of South African companies from multiple African countries and not just Nigeria. Shoprite’s exit from Nigeria and Kenya for instance was due to a leadership change. The new CEO prioritised reinvesting in South Africa over pursuing the African expansion strategies of the previous CEO.
It’s important to note that some of these exits are part of broader restructuring efforts. For instance, Pick n Pay closed stores across Africa as part of a domestic focus. These decisions aren’t always about Nigeria but reflect a combination of factors, including challenges at home.
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Q: In 2014, South Africa accounted for 60% of Nigeria’s FDI, but by 2023, this dropped to under $300 million. Is there any chance investment surges again on the back of recent reforms in Nigeria?
The decline in FDI is due to multiple challenges.
The currency volatility is one. The naira’s sharp devaluation and unpredictability make investment difficult. The rand, though volatile, remains market-driven and somewhat stable.
High inflation, weak consumer spending, and regulatory issues also deter investors.
There has also been a consumer pullback in Nigeria. The reduced purchasing power has severely impacted consumer-facing sectors.
Recent reforms in Nigeria, like floating the currency, were necessary but implemented alongside too many others, creating shockwaves. For instance, no one anticipated the naira’s sharp depreciation, which has complicated things further.
Q: What pressing reforms would you recommend for Nigeria to attract South African investors again?
Nigeria has always been a challenging market for South Africans, but key reforms are still needed. The authorities need to ensure investors can easily repatriate funds.
Addressing power supply issues, improving port operations, streamlining import processes and reducing bureaucratic hurdles are also very vital.
Sectors like renewable energy and digital technology present huge opportunities. South Africa has expertise in these areas, but the focus should be on partnerships and shared projects rather than one-sided investments.
Q: Anything else you’d like to highlight about South Africa-Nigeria relations?
The Chamber has been actively working to address these challenges through initiatives like the Joint Ministerial Advisory Council, launched in Abuja in 2021. It involves both governments, private sector players, and chambers from both countries. However, progress has been slow, especially on the Nigerian side.
We’ve identified key sectors like energy, manufacturing, and digital technology for collaboration, but it’s not just about investment. We need to explore trade opportunities better. For instance, South Africa imports cocoa and sesame seeds but not from Nigeria, despite its potential to supply these products.
There’s much work to be done, but strengthening trade and investment ties between the two countries is essential for mutual growth.
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