Gauteng News – Business & Economy
Nigeria continues to be South Africa’s leading export destination on the African continent, and with its recent submission of tariff concessions under the African Continental Free Trade Area (AfCFTA), bilateral trade between the two nations is expected to strengthen even further. This is according to the Minister of Trade, Industry and Competition, Parks Tau, who addressed the South Africa–Nigeria Private Sector Engagement in Johannesburg today.
The engagement, hosted at MTN’s headquarters in Roodepoort, brought together senior government officials and private-sector leaders from both countries to deepen economic ties and explore new avenues for trade and investment cooperation.
A Significant Step Toward AfCFTA Integration
The gathering took place shortly after Nigeria became the 23rd African Union Member State to submit its provisional schedule of tariff concessions under the AfCFTA, as published in the Government Gazette on 15 April 2025. Minister Tau said this milestone would accelerate the implementation of the AfCFTA and widen market access for South African businesses in West Africa.
“Our partnership is anchored by several agreements, including the Memorandum of Understanding on Economic and Technical Cooperation signed in 2012. While South Africa and Nigeria already enjoy strong political and economic ties, there remains untapped potential to unlock greater mutual benefits,” Tau said.
Addressing Trade Imbalances and Diversifying Opportunities
In 2024, South Africa recorded a sizeable trade deficit with Nigeria, primarily driven by crude oil and gas imports. Minister Tau highlighted the need to diversify bilateral trade beyond extractive commodities.
Sectors identified for growth and collaboration include:
- Automotive manufacturing
- Electric mobility
- Pharmaceuticals
- Agriculture
- Green energy and industrialisation
Both countries are also early backers of the AfCFTA Digital Protocol, positioning themselves to collaborate in digital trade, infrastructure development and technology-driven value chains.
Tau noted that the global shift toward clean energy presents a historic opening for both South Africa and Nigeria to leverage natural resources for green industrial development.
Supporting Businesses and Removing Trade Barriers
Acknowledging the persistent challenges faced by South African companies operating in Nigeria—such as market-access constraints and non-tariff barriers—Tau reaffirmed government’s commitment to resolving these issues.
He pointed to the Joint Ministerial Advisory Council on Industry, Trade and Investment, established during a 2021 state visit to Nigeria, as a key platform for structured problem-solving and closer collaboration.
Key Objectives of the Private Sector Engagement
The engagement aimed to strengthen strategic dialogue and had three core objectives:
- Identifying opportunities for South African businesses within the Nigerian market;
- Discussing barriers and challenges affecting trade and investment in both directions;
- Exploring collaborative strategies for enhanced government support to the private sector.
Tau also provided an update on discussions held during the AfCFTA Council of Ministers meeting on 15 April 2025, where both nations reiterated their commitment to implementing the continental agreement and addressing the rise of protectionist trade measures.
A Call for Action and Long-Term Partnerships
Closing the engagement, Minister Tau urged business leaders to continue forging strong partnerships and take practical steps to deepen commercial ties.
“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.
Caption: Minister of Trade, Industry and Competition, Parks Tau, addresses business leaders during the South Africa–Nigeria Private Sector Engagement at MTN Headquarters in Roodepoort.
