Nigeria - South Africa New Trade Deal: Anything to Cheer?

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Friday, October 11, 2019   / 03:00PM / United Capital Research / Header Image Credit: @NigeriaGov

 

Africa's two largest economies, Nigeria and South Africa recently decided to mend relations, after a two-day visit by President Muhammadu Buhari to South Africa. In the spirit of economic integration, the two parties signed about 30 trade deals and cooperation agreements, spanning across international trade, mobility and measures to prevent further inter-country hostility.

The agreement, deemed to deepen trade ties between the two countries, included vital sectors such as trade and industry, science and technology, defense, agriculture and energy. Also, both parties reiterated the need to kick-start the issuance of 10-year visas to businessmen, academics and frequent travelers, to promote friendly relations. In order to avoid recurrence of attacks, an agreement was also reached, to create 'early warning mechanisms', which will speedily detect hostility between the two countries.  Overall, the outcome of the meeting is positive for the continent considering their  shared  economic  size in the region.

South Africa remains an important trade partner to Nigeria, being Nigeria's 7th largest export partner, valued at N2.5bn as at Q2-19. In our view, the new deal between Nigeria and South Africa is a step in the right direction as this will foster the success of the African Continental Free Trade Agreement (AfCFTA), which is heavily reliant on both economies.  

 

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Looking Forward 

Angola

Sep-19 CPI YoY - October 12th 

Sep-19 Net Reserves - October 18th 

 

Ghana

Sep-19 CPI YoY - October 16th 

Sep-19 PPI  YoY- October 23th

 

Senegal

Q2-19 GDP Report- October 11th 

 

Morocco

Sep-19 CPI YoY- October 22nd 

Sep-19 Money Supply M3 YoY

 

Nigeria

Sep-19 CPI YoY- October 14th 

Sep-19 M2 Money Supply YoY –October 20-27

 

South Africa

Aug19 Retails Sales MoM– October 16th 

Sep-19 CP! YoY- October 23th 

 

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