As the country works to navigate ongoing trade challenges, Africa remains a largely untapped market in its international trade strategy. A more proactive and aggressive approach is needed to tap into the continent’s open market opportunities, said minister of trade, industry and competition, Parks Tau, during the South Africa-Nigeria private sector engagement.
Tau said Nigeria remains South Africa’s foremost export destination on the continent, and with its formal submission of tariff concessions under the African Continental Free Trade Area (AfCFTA), they expect improved bilateral trade and greater access to respective markets within West Africa.
According to Tau, agriculture is one of the sectors that could benefit South Africa in trading with Nigeria and boost both countries’ economies.
Mutually beneficial partnership
“Our partnership is further anchored by several agreements, notably the Memorandum of Understanding on Economic and Technical Cooperation signed in 2012, which provides a framework for increased collaboration in trade, investment, and technical capacity.
While South Africa and Nigeria already enjoy strong political and economic ties, it is evident that there remains untapped potential to better enhance the depth and mutual benefit of our commercial relationship. Key growth sectors identified for bilateral cooperation include automotive manufacturing, electric mobility, pharmaceuticals, agriculture, and green energy,” he said.
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Both countries are also champions of the AfCFTA Digital Protocol, and Tau emphasised the importance of joint initiatives in digital trade, infrastructure, and the development of technology-intensive global value chains. He further noted the global energy transition as a historic opportunity for both nations to leverage their respective natural resources toward green industrialisation.
Tau reaffirmed the South African government’s commitment to address these constraints. He cited the establishment of the Joint Ministerial Advisory Council on Industry, Trade and Investment during a 2021 state visit to Nigeria as a critical mechanism to facilitate problem-solving and collaboration.
“The Private Sector Engagement had three key objectives to gain insights from the private sector into opportunities in the Nigerian market, to deliberate on the barriers and challenges businesses face when operating in each other’s markets and to explore collaborative strategies for enhanced government support of trade and investment,” he said.
Tau also reported on recent discussions held on the sidelines of the AfCFTA Council of Ministers. These discussions reaffirmed a shared commitment to implementing the AfCFTA and addressing the rise in unilateral and protectionist trade measures globally.
“The department of trade, industry and competition stands ready to support your initiatives in navigating the Nigerian market and capitalising on the vast opportunities it presents. Let us work together to unlock the full potential of South Africa–Nigeria economic relations for the mutual benefit of our peoples,” he said.
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