April 20, 2007

Nigeria improves business relations with SA

Nigeria's long history of military rule has made many businesses sceptical about forming relations with the western African country. However, that is soon to change as South Africa is becoming Nigeria's top import partner in the continent.

There are ongoing bilateral talks between business communities from both countries. Economic and trade relations between South Africa and Nigeria have steadily improved over the past 12 years. In South Africa's trade with the West African region, 76% is with Nigeria, Ghana and Senegal.

South Africa presents an important market for imports from West Africa, and in turn the region provides a huge market for South African trade.

Both the Nigerian and South African business communities express the need for stronger ties between the two countries. Foluso Phillips, the chairperson of the Nigerian-South African Chamber of Commerce, was quick to dispel the notion that it was risky to investing in Nigeria.

Myths and stereotypes have changed
"There is a high level of comfort that a lot of South African companies are experiencing and the people are more confident. The projects they are getting involved in are getting bolder and the all kinds of relationships are being built up. The old myths and concepts that people have about Nigeria itself have changed," said Phillips.

However, he warns that businesses need to follow the rules and regulations that are put in place.

South Africa's imports from Nigeria amounted to more than R9 million last year. The Nigeria-South Africa Chamber of Commerce was established in 2001 to improve the bilateral relations. South African businesses in Nigeria say there are lots of opportunities that still need to be explored.

South Africa is a major source of investment for Nigeria. Significant investment has been made in industries such as oil and gas, information and communication technologies, banking and tourism. The chamber is promoting interactions between business communities of both countries to improve trade and in turn put Nigeria in a better light as a trading partner.