Nigeria remains South Africa’s foremost export destination on the continent, and with its formal submission of tariff concessions under the African Continental Free Trade Area (AfCFTA), we expect improved bilateral trade and greater access to respective markets within West Africa. This was said by the Minister of Trade, Industry and Competition, Mr Parks Tau during the South Africa-Nigeria Private Sector Engagement, which took place in Johannesburg today.
He was addressing a South Africa–Nigeria Private Sector Engagement hosted at MTN’s headquarters in Roodepoort, Johannesburg, where business leaders and government officials from both countries gathered to deepen economic cooperation and explore concrete trade and investment opportunities.
The event came at a pivotal time, as Nigeria recently became the 23rd African Union Member State to submit its provisional schedule of tariff concessions under the AfCFTA, as published in the Government Gazette on 15 April 2025. This development is expected to accelerate the implementation of the AfCFTA and facilitate broader market access for businesses in both countries.
“Our partnership is further anchored by several agreements, notably the Memorandum of Understanding on Economic and Technical Cooperation signed in 2012, which provides a framework for increased collaboration in trade, investment, and technical capacity. While South Africa and Nigeria already enjoy strong political and economic ties, it is evident that there remains untapped potential to better enhance the depth and mutual benefit of our commercial relationship,” said Tau.
In 2024, South Africa recorded a substantial trade deficit with Nigeria, largely due to oil and gas imports. Minister Tau stressed the need to diversify the trade basket and reduce dependency on extractive commodities. Key growth sectors identified for bilateral cooperation include automotive manufacturing, electric mobility, pharmaceuticals, agriculture, and green energy.
Both countries are also champions of the AfCFTA Digital Protocol, and Tau emphasised the importance of joint initiatives in digital trade, infrastructure, and the development of technology-intensive global value chains. He further noted the global energy transition as a historic opportunity for both nations to leverage their respective natural resources toward green industrialisation.
Acknowledging the real challenges faced by South African companies operating in Nigeria—such as market access barriers and non-tariff impediments—Tau reaffirmed government’s commitment to address these constraints. He cited the establishment of the Joint Ministerial Advisory Council on Industry, Trade and Investment during a 2021 state visit to Nigeria as a critical mechanism to facilitate problem-solving and collaboration.
The Private Sector Engagement had three key objectives:
- To gain insights from the private sector into opportunities in the Nigerian market;
- To deliberate on the barriers and challenges businesses face when operating in each other’s markets; and
- To explore collaborative strategies for enhanced government support of trade and investment.
Tau also reported on recent discussions held on the sidelines of the AfCFTA Council of Ministers meeting on 15 April 2025. These discussions reaffirmed a shared commitment to implementing the AfCFTA and addressing the rise in unilateral and protectionist trade measures globally.
The Minister concluded by calling for practical steps and sustained engagement to turn commitments into action.
“The Department of Trade, Industry and Competition stands ready to support your initiatives in navigating the Nigerian market and capitalising on the vast opportunities it presents. Let us work together to unlock the full potential of South Africa–Nigeria economic relations for the mutual benefit of our peoples,” he said.
The Minister of Trade, Industry and Competition, Mr Parks Tau, addressing business leaders during the South Africa–Nigeria Private Sector Engagement held at MTN Headquarters in Roodepoort.
MEDIA ENQUIRIES:
Yamkela Fanisi – Ministerial Spokesperson
Department of Trade, Industry and Competition
E-mail: YFanisi@thedtic.gov.za
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Or
Bongani Lukhele – Director: Media Relations
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E-mail: BLukhele@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
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