President Cyril Ramaphosa has called for a more robust and diversified economic partnership between South Africa and Nigeria, emphasizing the need to strengthen bilateral trade and investment during the SA-Nigeria Business Roundtable in Cape Town on December 3, 2024. The event, which coincided with the working visit of Nigeria’s President, Bola Ahmed Tinubu, provided a platform for leaders and business stakeholders from both countries to engage on how to deepen economic ties. Ramaphosa underscored the importance of collaboration between the two African giants, which share not only a history of strong diplomatic relations but also a significant economic potential.
In his address, Ramaphosa outlined three key priorities for the roundtable: fostering economic cooperation, addressing trade challenges, and identifying new opportunities to maximize trade and investment flows between South Africa and Nigeria. “Nigeria and South Africa enjoy strong diplomatic ties and expanding trade flows,” said Ramaphosa. “However, there is still much to be done to diversify trade and ensure a mutually beneficial partnership.” He pointed out that while the relationship between the two countries has seen progress, there remains substantial untapped potential that needs to be harnessed for long-term economic growth.
One of the central issues raised by the president was South Africa’s ongoing trade deficit, largely driven by its reliance on Nigerian oil and gas imports. Ramaphosa emphasized the need for diversification in trade, urging both countries to look beyond energy and explore new avenues for collaboration in sectors like automotive manufacturing, critical minerals, and pharmaceuticals. By creating integrated value chains in these industries, Ramaphosa argued, both nations can secure a more balanced and resilient economic relationship that reduces dependency on any one sector.
The president also highlighted the opportunities presented by the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services across the continent. He stressed that regional integration through AfCFTA would not only reduce reliance on imports from outside Africa but also foster intra-African trade, which in turn could drive sustainable development. “We must trade more within Africa and build integrated regional value chains,” Ramaphosa said, reiterating the critical role of intra-Africa collaboration in strengthening the continent’s economic position globally.
Ramaphosa also spoke about infrastructure development, calling for greater collaboration between South Africa and Nigeria to leverage the strengths of their respective development finance institutions. He outlined key areas for cooperation, including electricity, bulk water supply, and transport networks. By pooling resources and expertise, the two nations can address critical infrastructure gaps that will enable sustained economic growth and improve the quality of life for their populations. This cooperation could also serve as a model for other African countries looking to strengthen regional integration and development.
The South African president concluded his address by congratulating Dr. Ngozi Okonjo-Iweala on her reappointment as Director-General of the World Trade Organization, recognizing her leadership in advancing Africa’s interests on the global trade stage. Ramaphosa called for a unified approach in shaping a developmental agenda that would benefit the entire African continent, urging both public and private sector stakeholders to join forces in creating a prosperous future. “With the strategic positioning of our nations, we have the opportunity to build a prosperous Africa that meets the needs of all its people,” he concluded, emphasizing that the time to act is now.
