'Huge potential' for SA, Nigeria trade
Michael Appel
29 July 2008
Trade and investment between South Africa and Nigeria has been growing at a "phenomenal rate, but we're only starting to scratch the surface," Trade and Industry director-general Tshediso Matona said at the South Africa-Nigeria Business Forum in Johannesburg.
High import tariffs, trade barriers and a culture of protectionism were impeding trade and investment between the two countries, Matona said.
"Unbalanced trade between African states is a known trend that needs to change, as inter-Africa trade is a mere 10% of continental trade. The average inter-Africa trade between 1996 and 2005 was 9.6% of total trade."
Matona said the Department of Trade and Industry looked forward to working with Nigerian businesses to open up trade opportunities and allow investment to grow between the two countries.
Business sectors represented at the South Africa-Nigeria Business Forum included oil and gas, information and communication Technology, tourism, infrastructure development, financial services, aviation, agriculture, and power services.
Nigeria, which contributes over 55% of west Africa's gross domestic product (GDP), presents huge growth opportunities for South African exports.
Trade between Nigeria and South Africa grew to almost R11-billion in 2007, largely due to an increase in demand for energy resources in South Africa, with crude oil constituting 98% of South African imports from Nigeria.
"We would like to help Nigeria's economy to diversify their exports to South Africa," Matona said.
In 1999, only four South African companies operated in Nigeria. However, there are now over 100 companies doing business in almost all sectors of the Nigerian economy.
Source: BuaNews
