SA, Nigeria boost trade relations

 

Cape Town, South Africa (PANA) - South Africa is looking forward to working with Nigerian businesses to further open up trade opportunities and allow investment to grow between the two countries, Deputy Pre sident Kgalema Motlanthe said on Sunday.

He spoke during a business roundtable which formed part of the 10-year anniversa ry celebration of the South Africa-Nigeria Bi-National Commission (BNC).

Motlanthe said the business relationship between Nigeria and South Africa was fu ll of opportunities, as witnessed by the success recorded so far by South Africa n companies doing business in Nigeria.

"We are seeing entry of Nigerian-based companies into South Africa, the highligh t, of course, being the listing of Oando Nigeria on the Johannesburg Stock Excha n ge and the investment by Dangote Group in our cement industry for a record US$37 8 million.

"At a private business level, we are seeing some of Nigeria's successful busines s people partnering with their South African counterparts. We would like to see more of such partnerships and more of Nigerian businesses coming into Sou th Africa," he added.

He said business enterprises had a critical role to play in the pursuit of socio -economic goals.

The scope of engagement between the countries' respective private sectors spans across such crucial areas as energy, telecommunications, banking, construction, hospitality and retail.

Since the launch of the BNC, trade between the two countries had leapt from US$1 6.5 million in 1999 to US$2.1 billion in 2008.

However, while trade and investment between South Africa and Nigeria has grown r apidly in the last few years, it is just beginning to scratch the surface of wha t

it could be, said Motlanthe.

"We should all admit that we can do more if we redouble our efforts. There are s till many trade opportunities between our countries which remain largely untappe d ," he added.

The Deputy President noted that the Global Construction Perspectives and Oxford Economic Study that had just been released reported that construction growth in Nigeria will be the fastest of all markets in the next 10 years.

The study said infrastructure construction was set to grow in emerging markets b y 128 percent from now to 2020, compared with 18 percent over the same period in developed countries.

"For us as a developing nation that has embarked on massive infrastructure devel opment occasioned by, amongst others, South Africa hosting the 2010 FIFA World C u p, these forecasts are already coming true.

"The forecasts about construction growth in Nigeria and what we are currently wi tnessing in South Africa in this area of activity demonstrate the existence of permanent and strategic business and government-to-government interests between our two countries," he said.

Motlanthe said South Africa would like to bring parity to the skewed trade balan ce in favour of Nigeria, because of the amount of oil South Africa imports from N igeria.

Listing some of the achievements of the BNC since is establishment, Motlanthe sa id the Minister of Justice and Constitutional Development, in terms of the Advoc a tes Act 74 of 1964, designated Nigeria so that Nigerian lawyers can practice in Sout h Africa and an agreement was signed with Nigerian Travel and Tour operators to j ointly promote South Africa and Nigeria.

The Deputy President added that since the establishment of the BNC, South Africa had provided training on drug information for Nigerian health practitioners.

Regarding the oil, energy and gas sector, PetroSA has been operating partnership with MONI PULO, a Nigerian indigenous company. PetroSA was also awarded a contr a ct by the Nigerian National Petroleum Corporation to lift crude from Nigeria.

He said Eskom had also assisted the former National Electric Power Authority of Nigeria in the rehabilitation and repair of transmission transformers.
 
Cape Town - 16/11/2009
 
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