Concerns have been raised over the decreasing number of South African businesses operating in the Federal Republic of Nigeria, and the 11th session of the Bi-National Commission held in Cape Town provided an opportunity for the respective heads of State to consider the challenges.
IOL reported earlier that President Cyril Ramaphosa has announced plans to ease visa regulations for qualifying Nigerian businesspeople and for tourists from Nigeria travelling to South Africa.
Ramaphosa hosted President Bola Ahmed Tinubu, who led a delegation to South Africa for the 11th session of the Bi-National Commission between South Africa and Nigeria in Cape Town.
With bilateral relations escalating between Africa’s biggest economic powerhouses, statistics show that Nigeria accounts for approximately 64% of South Africa’s total trade with the West African region.
Speaking to broadcaster Newzroom Afrika in the aftermath of the Bi-National Commission, Minister of International Relations and Cooperation, Ronald Lamola, said the matter of dwindling number of South African entities operating in Nigeria also came under the radar during the extensive engagements.
“Indeed that was one of the issues that were discussed. There has been challenges, including the decline of the number of business from South Africa to Nigeria and one of the issues for agreement is with regards to the management of these difficulties for South Africa business in Nigeria,” said Lamola.
“There has been work at a political level to ease that situation, to enable a good working environment for South Africa businesses in Nigeria, and also for Nigerian businesses in South Africa.”
Lamola said several “challenges” have been identified by the South African businesses operating in Nigeria, particularly the taxation and access to business licencing.
“There is a clear path that is aimed to resolve those difficulties and teething challenges. You would have heard President Tinubu mentioning some of the South African companies in Nigeria that are able to operate and flourish with those challenges, and also those challenges being attended to,” he said.
In March 2016, during the State Visit by South Africa, the Bi-National Commission between South Africa and Nigeria was elevated to a presidential level.
The Department of International Relations and Cooperation (Dirco) said there has been a number of exchanges of high-level visits between the two countries, including the visit to Nigeria by Ramaphosa to attend Tinubu’s inauguration ceremony held in Abuja on May 29, 2023.
In turn, Tinubu attended the inauguration of Ramaphosa in June 2024 and the two heads of State had an opportunity to exchange views.
“South Africa regards Nigeria as a strategic partner in the context of bilateral relations in the West Africa region, and the continent in pursuing the vision for Africa’s renewal, South-South cooperation, and in the promotion of a rules-based international system of governance. The two countries share a common vision on issues of political and economic integration of the African continent,” Dirco said in a media advisory ahead of the Bi-National Commission.
There are currently 34 agreements and memoranda of understanding between the two countries which cover a wide range of fields including economic, technical, scientific, social, and tourism, among others.
The two countries share historical relations dating back to the struggles against colonialism and the apartheid, during which period Nigeria supported the African National Congress and other liberation movements.
Nigeria spearheaded various campaigns, calling for political and economic sanctions against the apartheid system.
In December 1989, Nigeria championed the adoption of the landmark UN Declaration on Apartheid and its Destructive Consequences in South Africa.