SOUTH AFRICA AND NIGERIA: TRADE AND INVESTMENT

The relationship between South Africa and Nigeria is one of Africa’s most important economic partnerships. Together, they account for a significant share of sub-Saharan Africa’s GDP, financial services, telecommunications investment, and corporate activity.
Many policymakers see the two countries as the continent’s economic anchors. When the two countries cooperate, they can shape regional trade rules, investment flows, financial integration, and continental business networks. South African firms bring capital, corporate expertise, and financial depth, while Nigeria offers many opportunities across sectors. Among the attractions for investors is the large consumer market, a rapidly growing digital economy, the opportunities in renewable energy and manufacturing, and the opportunity to export to Nigeria finished goods.
 
Trade between the two countries is substantial but relatively narrow.
 
  • South Africa’s imports from Nigeria are dominated by crude oil and petroleum products.
  • South Africa exports manufactured goods, machinery, chemicals, fruit, processed foods, mining equipment, and professional services to Nigeria.
  • Nigeria is one of South Africa’s most important trading partners in West Africa.
  • Both governments are trying to diversify trade away from the traditional oil-for-manufactures model toward technology, agriculture, services, logistics, tourism, and industrial products.
More than 34 Agreements covering various sectors have been signed since the establishment of diplomatic relations between the two countries in 1994, although relatively few have been ratified.

South Africa-Nigeria Trade Information

 

JOINT MINISTERIAL ADVISORY COUNCIL ON INDUSTRY, TRADE & INVESTMENT (JMACITI)

The South Africa-Nigeria Joint Ministerial Advisory Council on Industry, Trade & Investment is a bilateral initiative to boost relations between Africa’s two biggest economies.

It was launched in November 2021 on the side lines of the 12 Session of the Binational Commission sitting in Abuja.

It is led by the Ministry of Trade, Investment and Competition (DTIC) in South Africa and the Federal Ministry of Industry, Trade & Investment (FMITI) in Nigeria. The two Ministries will jointly co-ordinate the work of a private sector Advisory Council, which comprises companies and organizations in South Africa and Nigeria.

Each country has its own process, and the two will come together to discuss market entry and operational challenges as well as investment opportunities in each other’s countries.

The Council is expected to serve as a critical vehicle for facilitating and promoting private sector participation in Africa’s two largest economies and strengthening trade and investment ties.