Nigeria, South Africa create trade advisory council to boost economic ties

Nigeria and South Africa have created the South Africa-Nigeria Joint Ministerial Advisory Council on Industry, Trade, and Investment (JMACITI), a bilateral initiative to strengthen economic cooperation between two of Africa’s largest economies.

South African President Cyril Ramaphosa announced the council’s full operationalisation during the Nigeria-South Africa Business Roundtable in Cape Town, South Africa on Wednesday, calling it a pivotal step towards providing “a conducive environment for improved trade and investment.”

The council, initially launched in November 2021 during the 12th Bi-National Commission meeting in Abuja, is led by South Africa’s Department of Trade, Investment, and Competition (DTIC) and Nigeria’s Federal Ministry of Industry, Trade, and Investment (FMITI), laying the groundwork for deeper collaboration between the nations.

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“We do recognise that challenges still exist within our respective operating environments that limit the expansion of investment and sometimes impact on the operations of companies,” Ramaphosa said. “Through the Council, we hope to ensure the efficient resolution of trade and investment-related challenges.”

The advisory council will focus on coordinating efforts between government ministries and private sector stakeholders in both countries, aiming to enhance trade opportunities beyond oil and gas.

South Africa’s imports from Nigeria in 2023 totalled $2.37 billion, in comparison to its exports which brought in $355.46 million, according to the United Nations COMTRADE database on international trade. Mineral fuels, oils, and distillation products accounted for 98.7 percent of all imported goods.

“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,” Ramaphosa said.

This comes as South Africa unveiled new visa regulations for Nigerians granting the country’s businessmen and tourists a five-year multiple entry visa to South Africa including the option to apply for visas without submitting their passports.

Meanwhile, Nigerian President Bola Tinubu reiterated his administration’s commitment to creating a stable and secure business environment to court investors during the meeting. He assured South African investors of reforms improving economic conditions and encouraged reciprocal openness for Nigerian businesses in South Africa.

Describing the relationship between the two nations as one of interdependence, President Tinubu said, “Nigeria and South Africa are co-joined twins tied by the hips, not just for survival but for shared prosperity.”