President Jacob Zuma’s visit

Last week’s state visit to Nigeria by South Africa’s President Jacob Zuma was a delicate mission to mend rifts between the African continent’s two leading countries. Ties between South Africa and Nigeria have been somewhat strained in recent times due to economic rivalry and political friction. The lowest point was reached last year when the […]

Last week’s state visit to Nigeria by South Africa’s President Jacob Zuma was a delicate mission to mend rifts between the African continent’s two leading countries. Ties between South Africa and Nigeria have been somewhat strained in recent times due to economic rivalry and political friction. The lowest point was reached last year when the Nigerian Foreign Ministry recalled our envoys from South Africa following the xenophobic attacks on other Africans in that country. The death of 81 South Africans in Pastor TB Joshua’s Synagogue Church of All Nations (SCOAN) building in Lagos two years ago; the $10 million cash-for-arms fiasco and the $5bn fine slapped on South Africa telecom giant MTN by Nigeria’s telecom regulator also clouded relations.
With President Zuma’s fence-mending visit, we believe both Nigeria and South Africa should begin to chart a new path anchored by the two nations to push for greater economic progress in Africa. It is a positive sign that in the tough times we are in, the two nations are turning to each other. South Africa’s economy is threatened with recession as demand from its main trading partner, China, weakens and commodity prices plunge. Nigeria on its part has been hit by a collapse in oil revenues. Both economies are under pressure, with growth slowing to 1.3 percent in South Africa last year and reaching a 16-year low of 3.3 percent in Nigeria, according to the World Bank. To weather the global storm, the two countries are seeking closer trade and investment ties.
The talks held between President Muhammadu Buhari and President Zuma reportedly centred on deepening trade relations between the two nations. Zuma, who came with a large entourage of 150 businessmen, showcased the capacity of South Africa as a potential partner to Nigeria. His country is the biggest buyer of Nigeria’s oil in Africa, shipments of which have more than doubled between 2008 and 2014. Since 1999 the number of major South African companies operating in Nigeria has risen to about 120. They are in various sectors including telecoms, aviation, tourism, banking, property, retail, entertainment and fast food. MTN, Multichoice, Shoprite, Protea Hotel, South Africa Airways and South African Breweries are the most prominent of them.
 On the flipside however, Nigeria doesn’t even feature in South Africa’s top 20 export markets. It is expected that on the basis of reciprocity, measures will be put in place to balance trade between both countries. Nigeria is lagging behind and we should be more aggressive going forward to foster a mutually beneficial trade and investment relationship with the Rainbow nation. Nigeria now seeks to diversify its sources of revenue and exploring other areas such as manufacturing, mining and agriculture. These are all areas in which South Africa is well positioned to partner with Nigeria.
Nigeria with its huge population offers South African businesses a huge market for their products and services. Even though Nigeria’s economy is quantitatively larger, South Africa’s is an advanced industrial economy. In this regard, Nigeria stands to benefit from South Africa’s experience in mining, auto assembly, textiles, iron and steel among others.
Trade relations apart, President Zuma also offered his government’s help in the war against terrorism. This is good payback for Nigeria, which for many decades morally and materially supported liberation movements in South Africa during the years of anti-apartheid struggle. During his address to the joint session of the National Assembly, President Zuma acknowledged the role of Nigeria in helping his country during the years of struggle for emancipation from apartheid.
In more ways than one, Nigeria and South Africa are the two most important nations in Africa and a strategic partnership and very cordial relations between the two of them would be in the interest of Africa as a whole. The two countries have upgraded their joint commission to be headed by the two presidents. We urge them to remove all obstacles in the way of better relations in the future.