Temitope Ajayi, acting high commissioner of Nigeria to South Africa, has called on Nigerian investors to take advantage of business opportunities in the South African economy, particularly in the mining, agriculture, and banking sectors.
Ajayi spoke with journalists on Thursday in Pretoria during
the MTN Media Innovation Programme (MIP) study trip.
He said while several South African companies have
established a strong presence in Nigeria across different sectors, Nigerian
businesses have not matched that visibility in South Africa.
“Many South African businesses operate in Nigeria, but we do
not 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 by
oil, which gives Nigeria a favourable balance of trade on paper.
However, the commissioner argued that the data creates a
false impression, as non-oil exports remain underdeveloped, and South African
firms still dominate the Nigerian market.
“When you disaggregate the numbers, you will see that the
real strength of our trade balance lies in oil. In the non-oil sector, we are
not doing well at all,” he said.
“This is where more Nigerian businesses need to step in, so
that the balance of trade reflects a fuller picture.”
‘NIGERIA, SOUTH AFRICA MUST ALIGN TO UNLOCK AfCFTA
POTENTIAL’
The envoy stressed that Nigeria must increase its visibility
in South Africa to unlock the potential of the African Continental Free Trade
Area (AfCFTA).
He added that agriculture presents a strong entry point,
citing the growing popularity of Nigerian food and restaurants in South Africa
as proof of market demand.
“In Pretoria alone, you can count more than five Nigerian
restaurants, and that shows there is space for more players, especially in food
and agriculture,” he said.
Ajayi also identified the banking sector as an area of
untapped opportunity, pointing out that Nigerian financial institutions could
support projects and provide capital to South African businesses, particularly
black-owned enterprises under the country’s Black Economic Empowerment (BEE)
programme.
However, he acknowledged that Nigeria’s low presence in
South Africa is partly due to regulatory bottlenecks, which both countries are
working to ease.
“Our responsibility at the commission is to help smooth the
regulatory framework and make it easier for Nigerians to do business in South
Africa,” he said.
The envoy emphasised that stronger Nigeria–South Africa
economic ties would have ripple effects for the continent, noting that both
President Bola Tinubu and President Cyril Ramaphosa have repeatedly affirmed
that “if Nigeria and South Africa get it right, the entire continent will get
it right”.
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