South Africa and Nigeria Set Ambitious Goals to Boost Trade, Investment by 2025

South Africa and Nigeria are ramping up efforts to elevate bilateral trade and investment, with a focus on key sectors like infrastructure development, creative industries, and tourism.

The call for increased collaboration comes as both countries mark 30 years of diplomatic relations this year, with officials eyeing a substantial boost in economic cooperation by 2025.

In a significant meeting held in Cape Town on Monday, South Africa’s International Relations and Cooperation Minister Ronald Lamola and Nigeria’s Minister of State for Foreign Affairs, Ambassador Bianca Odumegwu-Ojukwu, co-chaired the Ministerial Session of the Bi-National Commission (BNC). Lamola emphasized the urgent need for both nations to leverage their sizeable economies and forge stronger ties in trade and investment, citing the potential for substantial growth in bilateral economic activity.

“One of the overriding imperatives of our bilateral relations is the need to increase our investment and trade relations to higher levels,” Lamola told the gathering. “The relatively large sizes of our economies logically dictate that our economic collaboration should be yielding much bigger results.”

South Africa and Nigeria, which together represent a combined GDP of over $1 trillion, are positioning themselves as key drivers of economic growth on the African continent.

Despite the current levels of trade which stands at around $2.5 billion annually both ministers expressed optimism that strategic initiatives within the African Continental Free Trade Area (AfCFTA) and shared infrastructure projects could significantly raise those numbers.

Key Areas for Growth: Infrastructure, Tourism, and People-to-People Relations

A major priority discussed during the session was the identification of “bankable projects” that would facilitate long-term investments in sectors such as infrastructure development.

Minister Lamola stressed the importance of boosting these key areas to help both countries capitalise on their economic potential.

“We need to look at infrastructure development, creative industries, and tourism as fundamental pillars of our future collaboration. This will not only stimulate trade but also create sustainable jobs for our people,” Lamola said.

On the cultural front, both countries aim to deepen people-to-people relations, which will foster understanding and promote shared values.

Lamola believes this approach will also support collaboration in education, science, and sports, further enhancing the strong ties between the two nations.

“This will allow our citizens to appreciate the rich tapestry of diverse cultures and heritage that exists in our respective countries,” he said.

Global Markets and Multilateral Cooperation

While discussing the broader global context, Lamola also voiced concerns about peace and security, both in Africa and globally.

The impact of instability in regions such as the Sahel and East Africa, as well as geopolitical tensions in other parts of the world, presents challenges for the international community.

However, Lamola noted that both South Africa and Nigeria have a shared responsibility to advocate for peace and diplomacy on the global stage.

“Nigeria, like South Africa, puts a high premium on the promotion of dialogue and peace in resolving disputes among countries. Our leadership in ECOWAS illustrates this commitment to diplomacy over confrontation,” Lamola said.

The discussions also touched on the need for reforms in global institutions such as the United Nations Security Council (UNSC), which Lamola argued must become more inclusive to reflect the evolving dynamics of international relations.

“The world is becoming fragmented and fragile. Multilateralism is under threat as the temptation to resort to force is becoming a feature of inter-state relations in certain regions.

Our continent is also grappling with a few conflict and war situations in some regions,” Lamola stated.

Looking Ahead: Strengthening Africa’s Voice in Global Platforms

Looking to the future, Lamola assured Odumegwu-Ojukwu that South Africa’s G20 Presidency, which began on December 1, will prioritize African developmental issues on the global stage.

Both ministers underscored the importance of the continent’s continued integration and participation in global economic governance.

“I look forward to the report of the officials and hearing your insights and perspectives on the matters we are about to deliberate upon,” Lamola concluded.

The two nations are poised for a continued partnership, with further discussions scheduled for tomorrow when President Cyril Ramaphosa will co-chair the 11th BNC Session with Nigerian President Bola Ahmed Tinubu.

The outcome of this summit is expected to further define the trajectory of South Africa-Nigeria relations as both countries strive to maximize their economic potential and strengthen their geopolitical influence.

Source:SAnews