Nigeria underperforming in non-oil trade with South Africa, says acting high commissioner

Temitope Ajayi, acting high commissioner of Nigeria to SouthAfrica, has called on Nigerian investors to take advantage of businessopportunities in the South African economy, particularly in the mining,agriculture, and banking sectors. Ajayi spoke with journalists on Thursday in Pretoria duringthe MTN Media Innovation Programme (MIP) study trip. He said while several South African companies haveestablished a strong presence in Nigeria across different sectors, Nigerianbusinesses have not matched that visibility in South Africa. “Many South African businesses operate in Nigeria, but we donot see the same level of participation by Nigerian companies in South Africa.Apart from Dangote and Access, very few have ventured here,” Ajayi said. He noted that trade between both countries is dominated byoil, which gives Nigeria a favourable balance of trade on paper. However, the commissioner argued that the data creates afalse impression, as non-oil exports remain underdeveloped, and South Africanfirms still dominate the Nigerian market. “When you disaggregate the numbers, you will see that thereal strength of our trade balance lies in oil. In the non-oil sector, we arenot doing well at all,” he said. “This is where more Nigerian businesses need to step in, sothat the balance of trade reflects a fuller picture.” ‘NIGERIA, SOUTH AFRICA MUST ALIGN TO UNLOCK AfCFTAPOTENTIAL’ The envoy stressed that Nigeria must increase its visibilityin South Africa to unlock the potential of the African Continental Free TradeArea (AfCFTA). He added that agriculture presents a strong entry point,citing the growing popularity of Nigerian food and restaurants in South Africaas proof of market demand. “In Pretoria alone, you can count more than five Nigerianrestaurants, and that shows there is space for more players, especially in foodand agriculture,” he said. Ajayi also identified the banking sector as an area ofuntapped opportunity, pointing out that Nigerian financial institutions couldsupport projects and provide capital to South African businesses, particularlyblack-owned enterprises under the country’s Black Economic Empowerment (BEE)programme. However, he acknowledged that Nigeria’s low presence inSouth Africa is partly due to regulatory bottlenecks, which both countries areworking to ease. “Our responsibility at the commission is to help smooth theregulatory framework and make it easier for Nigerians to do business in SouthAfrica,” he said. The envoy emphasised that stronger Nigeria–South Africaeconomic ties would have ripple effects for the continent, noting that bothPresident Bola Tinubu and President Cyril Ramaphosa have repeatedly affirmedthat “if Nigeria and South Africa get it right, the entire continent will getit right”.

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