Nigeria, South Africa work to bolster trade relations

Nigeria's President Muhammadu Buhari is currently on a state visit to South Africa where discussions on trade, human capital development, security, and more are taking place with South African President Cyril Ramaphosa. The issues of xenophobic attacks were tackled first and both presidents emphasized the need for an early warning mechanism to prevent such incidents in the future. However, there is uncertainty regarding the compensation demands made by Nigeria for the Nigerians who lost property during the attacks. More clarity is expected from the communiques to be produced after the three-day visit. In terms of trade relations, Nigeria currently exports more to South Africa with a focus on commodities like crude oil. Despite bilateral agreements and memorandums of understanding in place, there is a need to address the imbalance in large companies operating in each other's countries. South African companies have a significant presence in Nigeria, while the reverse is not true, signaling a need for a more balanced relationship. The Bi-national Commission (BNC) has been a crucial platform for facilitating trade and investment between the two nations for over two decades. The recent establishment of the Republic of Nigeria-Republic of SA Consulate Forum indicates a step towards enhanced economic collaboration. The ongoing South Africa-Nigeria Business Forum in Johannesburg aims to boost business ties between the two countries. While South Africa benefits significantly from Nigerian trade, there is a call for more Nigerian businesses to invest in South Africa to create a mutually beneficial relationship. President Buhari emphasized the importance of updating outdated bilateral agreements to strengthen trade links and foster economic growth. Both countries acknowledged the need to address social issues like unemployment and inequality to ensure that stronger ties are not undermined by domestic challenges. As Africa moves towards continental free trade, competitiveness becomes crucial for countries like Nigeria and South Africa to leverage open borders effectively. While there is optimism about the future of the relationship between the two nations, the actual outcomes of the agreements and initiatives will determine the success of their efforts.