Trade Investment | |
Trade Investment | |
2804 VIEWS | |
![]() | |
PROSHARE | |
PROSHARE |
Thursday,
October 31, 2019 / 03:59PM /
By Ade Adefeko of Olam / Header Image Credit: Anon
Historically,
Nigeria and the republic of South Africa have so much in common. The two
countries are former British colonies and they both belong to same Commonwealth
of Nations family. The two are also the most influential members of the African
Union as the biggest economies on the continent.
Nigeria
as a frontline state, though not geographically contiguous to South
Africa, played very significant role in the global and continental push
against the pernicious minority white domination in South Africa against the
majority blacks through the de-humanising apartheid regime that lasted for
almost a century. Together with other African countries, Nigeria led a strong
campaign against the evil of apartheid until the system was dismantled in 1990
and the subsequent emergence of President Nelson Mandela in 1994 as the first
elected black President. In the 1970s, in the heat of the anti-apartheid
struggles, Nigeria opened her heart and arms to receive scores of the African
National Congress leaders like Thambo Mbeki who made Lagos home. Mbeki
succeeded Mandela as second elected black President. They all lived at the
expense of the Nigerian government and many went to school here before they
joined their comrades in Zambia and other locations around the world.
Nigeria
kept the flames of struggle against apartheid. Nigerians, including school
children and civil servants were mobilised to campaign against apartheid system
as a crime against humanity. School children, civil servants, market women and
ordinary citizens contributed money to the fight against the oppressive system.
With
this historical relationship between the two countries and their preeminence as
the leading economies in Africa, it is expected that Nigeria and South Africa's
special friendship will catalyse and galvanise the rest of the continent to
deal with many of the developmental challenges still confronting us with a
missionary zeal.
While it
cannot be said that there is any dispute between Nigeria and South Africa at
government to government level, the people to people relationship between the
two countries has been strained in the last decade as a result of recurring
xenophobic attacks targeted at Nigerians living in South Africa and other
Africans due to the misguided behaviour of some criminal elements among the
young South Africans who see other Africans as the reason for their lack of
economic mobility.
Nigerians
love South Africa. We love to visit the rainbow nation for holidays, business
travels and conferences. To encourage more visits to South Africa, South Africa
Tourism opened office in Nigeria over a decade ago because of the amount of
Nigerians that visit the country for leisure annually. Until the last 3 years
where there was upsurge in xenophobic attacks against Nigerians in South
Africa, Nigerians have very positive view of South Africa and her influence on
the continent and the world. According to a 2013 BBC World Service Poll, 63% of Nigerians view South Africa's
influence positively, with 24% expressing a negative view.
Some
reasons have been adduced for the series of xenophobic attacks on Nigerians
living in South Africa since 2017. The alleged involvement of Nigerians in drug
trafficking, prostitution and human trafficking were some of the reasons
adduced.
Without
doubt, these attacks against Nigerians have put domestic pressure on the
government to act to protect Nigerians living in South Africa. This invariably
cast a pall on relationships between the two countries. The September 2019
attacks resumed with the destruction of properties of Nigerian in Johannesburg.
An estimated 120 Africans were reportedly attacked in the last xenophobic
uprising. 1,000 business were touched and 12 people reportedly killed. The
Nigerian government worked to safely evacuate 600 citizens back home. Sadly,
there was reprisal attacks reported in Lagos and Abuja against Shoprite, a
major South African retail behemoth.
The
recent attacks should not define the relationship between the two regional
powerhouses. South Africa and Nigeria have much to give to lead Africa into the
emerging new world where Africa has been designated as the new frontier for
global investments and geo-political scramble. There is a new scramble for
Africa by global powers. The fight for territorial influence among major powers
like China, France, Russia, United States among others demand that Nigeria and
South Africa must unite to provide the required leadership that prepares the
continent to maximally benefit from this new global push. If the 20th
century was period of colonialism with the attendant exploitation and
plundering of our resources, this 21st century must represent a new
paradigm shift.
Following the end of
apartheid in 1994, South African businesses sought for professionals to
immigrate and a large number of Nigerians responded. It is estimated that there
are over 50,000 Nigerians currently living in South Africa. The number was put
at about 25,000 in 2011. In a way, the fortunes of these two great countries
are already intertwined.
In seeking solution to the xenophobic
attacks with South African government, Nigerian authorities should not ignore
that much of South African's good will towards Nigerians for supporting the ANC
during apartheid regime has disappeared due to the activities of Nigerian organized crime.
Nigerian organised crime groups, mostly involved in illegal drug trafficking,
in South Africa grew rapidly between 1994 and 1998. It has now become a menace
according to reports.
Another factor that possibly stressed the
relationship between the two countries at some point was the increasing
competition between the two countries for positions at multilateral
organizations. Nigeria reportedly acted against South Africa in the race for
African Union Commission Chairmanship position when the then South African Home
Affairs Minister, Nkosazana Dlamini-Zuma
vied for the powerful position against the then incumbent Jean Ping from Gabon.
Relations further deteriorated when South Africa appeared to have backed former
president Laurent Gbagbo for control of Cote d'Ivoire
in 2011 against the interest of Nigeria and the whole of the ECOWAS that
supported incumbent President Alassane Ouattara.
However, after Dlamini-Zuma won the
election, the then Nigeria's Minister of Foreign Affairs, Ambassador Olugbenga Ashiru stated that although Nigeria supported
Jean Ping for the position of AU chairperson in "a position which was
principled along with our ECOWAS members and we
stood by it. But as usual, people can insinuate that once Nigeria was not in
the camp of South Africa, it means that Nigeria is against South Africa. We are
not against South Africa".
In a move that showed Nigeria
and South Africa have moved past whatever animus the AU Commission Chairmanship
position might have caused, South Africa stepped down from the contest for the
Presidency of the African Development Bank in 2015 and supported Nigeria's
candidate, Dr. Akinwumi Adesina who has served meritoriously and now running
for a second term in office.
What should be the relationship between Nigeria
and South Africa in a continent that looks up to the two continental giants is
the focus of the book with the title Nigeria-South Africa Relations and
Hegemonic Competence edited by Oluwaseun Tella.
The book x-rays the current relations between
Nigeria and South Africa and their implications for regional influence across
the African continent. While Nigeria leads the 16-member nations ECOWAS
regional bloc the same can be said of the Southern African Development
Community, (SADC) where South Africa leads the pack. As the largest and second
largest economies in the region and a historical status as the major
peacemakers on the continent, it is mainly argued that Africa's fate is
directly linked to the success or failure of these regional powers. While there
is widespread reference to each state's capabilities and regional influence in
the extant literature, little analysis is offered on relations between Nigeria
and South Africa and their impact on regional governance and provision of
public goods on the continent. Nigeria-South Africa Relations and Hegemonic Competence attempts to fill the gap by engaging
issues such as the regional leadership of the two states, their credentials for
a permanent seat at the United Nations Security Council, the moves towards
continental integration, and their quest towards combating the dark side of
globalization including climate change, drug trafficking and xenophobia.
Africans and friends of Africa want to see to
what extent Nigeria can and South Africa working with other members of the
continent's Big 5 like Egypt, Algeria and Ethiopia mobilise other African
states to achieve sustainable development on the continent? The Big 5 are the
top five leading economies in Africa with population of over 50million people.
What should be the areas of cooperation and competition since all countries of
the world, regardless of areas of mutual cooperation, still seek to defend
personal interests? The argument is that Africa's interest should be more
important to Nigeria and South Africa than other interests.
Whichever
way anyone sees it, the relationship between the two countries has been
beneficial and catalytic for socio-economic development. The two countries are
the largest trading partners on the continent. South African businesses like
MTN, Stanbic bank, DSTV among others are thriving in Nigeria. Beyond their
commercial success, these companies have also become good corporate citizens,
employing thousands of Nigerians, paying taxes and investing in communities
through Corporate Social Responsibility. MTN in its recent sustainability
report said it has paid N2trillion in taxes, import duties and other fees since
2002 when it started business in Nigeria. While South African businesses have
been very successful in Nigeria, there is also the thinking that South African
government has not provided same level of protection and conducive environment
for Nigerian businesses to flourish in South Africa.
Nobody
in Nigeria can argue against the positive impact of DSTV in content creation
and boost to the local entertainment industry by working with local talents and
other professionals. The company created Nigerian millionaires who are dealers
and resellers with thousands of technicians who earn their living daily as
installers. The Africa Magic Channels popularised Nigeria's Nollywood movie
industry across Africa. Nigerian actors such as Rita Dominic, Patience Ozokwor,
Geneveve Nnaji, Joke Jacobs, Stephanie Okereke, Kanayo O Kanayo, Olu Jacobs,
Osita Iheme, Chinedu Ikedieze (Aki and Paw Paw), Pete Edochie among others have
larger than life image. These movie stars are mobbed by crowd each time they
get into countries like Kenya, Uganda, Tanzania, Malawi, South Africa,
Zimbabwe, Rwanda and Namibia. Because of Kanayo, Olu Jacobs and Pete Edochie, a
typical Nigeria big man is regarded as an Igwe in these countries. That is how
well DSTV has done in promoting our movie and entertainment industry- a sector
that has become our biggest cultural export in the last 20 years.
It is important to note that President Muhammadu
Buhari played the role of an African statesman with his recent state visit to
South Africa in the heat of the anger at home on the back of the recent
xenophobic attacks on a number of Africans including Nigerians in Johannesburg
and Pretoria. Despite Nigerians' calls for retaliatory actions by our
government against South Africans' interests and push for severance of
diplomatic ties, President Buhari showed courage under domestic pressure and
braced the odds to personally visit South Africa to honour the invitation of
President Cyril Ramaphosa to smoothen a convulsed relationship.
Nigeria
and South Africa have a manifest destiny to lead the Africa renaissance. With a
bulging youth demographics and the demand by the population for better standard
of living, the imperatives to expand opportunities through investment in
education, healthcare, free trade, infrastructure and inclusive growth is more
urgent than before. The two leading nations must unite to drive the
African Union agenda 2063 in one accord.
The AU agenda 2063 is both a vision and an
action plan that calls for action on all segments of African society-
governments, private sector and the civil society- to work together to build a
prosperous and united Africa based on shared values and a common destiny. To
achieve this ambitious agenda in the next 40 years, Nigeria and South Africa
must reject mutual distrust and lead from the front.
About Author
Ade Adefeko, is Vice President Corporate and
Government Relations, Olam International. He can be reached by e-mail vide: ade.adefeko@olamnet.com or by telephone vide: 0817 742 0080.
Related News on Nigeria - South Africa Relations
1. Nigeria - South Africa New Trade Deal: Anything to Cheer? - Oct 11,
2019
2. South Africa's Economy in Q2-19: Fragile Still? - Sept 27,
2019
3. As For South Africa, So For Jigawa: Understanding The Missing Point -
Fasua - Sept 20, 2019
4. Why Nigerians Will Never Leave South Africa - Fasua - Sept 18,
2019
5. Xenophobia -
Organised Crime or Spontaneous Fear?
6. The AfCFTA:
Is Xenophobia a Threat?
7. Nigeria-South
Africa; Trade Not Xenophobia, A Handshake Across the Sub-Sahara
Related News on Border
Closure
1.
The Effects
of Nigeria's Closed Borders on Informal Trade with Benin - Brookings - Oct 30, 2019
2.
Thoughts On
Nigeria's Rice Bubble - Fasua - Oct 25, 2019
3.
Border
Closure Takes Its Toll On The Price Of Rice - FDC, Oct 22, 2019
4.
Inflation
Succumbs to Border Closure and Money Supply Growth - Spikes to 11.24% - FDC, Oct 16, 2019
5. Border
Closure Hitting The Price of Rice - CSL Research, October
04, 2019
6.
Border
Closures May Only Offer Temporary Subsidy Reprieve - CardinalStone
Research, October 11, 2019
7.
Effects of
Closing The SEME Border - Coronation Research,
October 15, 2019
8.
Border
Closures Begin to Take Toll on Prices -
CardinalStone Research October 15, 2019
Related News - Trade & Investment
1.
UK Takes
Steps To Boost Trade and Investment Partnership with Ghana
2.
AfCFTA:
Opportunities for Nigeria's National Development - Desmond Guobadia
3.
Brexit: UK
Reassures Nigeria On Strategic Bi-Lateral Trade Relations
5.
NBCC To
Establish Centre in London, To Facilitate UK-Nigeria Trade
6.
AFCTA -
African Companies Should Explore M and As – Ambassador Chiedu Osakwe
7.
AU, AfDB Sign
US$4.8m AfCFTA Grant
8.
Five (5)
Goods That African Merchants Can Export To China
9.
Remarks By
CBN Governor At The Meeting With Service Chiefs Towards Reviving The Textile
Industry
11.
AFCTA: LCCI
Harps On Competitive Nigerian Economy, Ghana To Serve As Secretariat
12.
Signing AfCTA
Agreement; Our Concerns for Nigeria
13.
Nigeria
Finally Signs AFCTA Agreement
14.
Key Takeaways
From The ECOWAS 55th Ordinary General Assembly of Heads of State
Related News - Economy
2. Nigeria: Revenue Problem Or A Debt Crisis?
3.
Nigeria's Total Public Debt Stood At N25.70trn in Q2
2019 - NBS
4.
Weekly Economic and Financial Commentary - Week Ended
Oct 18, 2019
5.
Crafting A Manufacturing Roadmap For Nigeria By 2050
- Engr. Mansur Ahmed, President MAN
6.
GDP By Income and Expenditure Approach Q1 2019 -
Household Final Consumption Exp. Grew by 1.41%
7.
Inflation Succumbs to Border Closure and Money Supply
Growth - Spikes to 11.24%
8.
Border Closures Begin to Take Toll on Prices
9.
#NES25:Nigerian Governors Forum Adopts Peer Review
Mechanism, Mulls Regional Economic Corridors
10. Effects of Closing The SEME Border
11.
Headline Inflation Increases By 11.24% YoY In
September 2019; 0.22% Higher Than August 2019 Rate
12. Unlocking Liquidity in Nigeria - Ayo Teriba
13. Foreign Direct Investment To Africa Remained Steady
In 2018
14. Inflation Set to Buck its Declining Trend
15. All Products Terms Of Trade Index Increased By 1.27%
in Q2 2019
16. Shared Responsibility: Building and Sustaining a
Strong Economic Future for Nigeria
17. Resetting
Nigeria On The Path Of Predictable Progress - Tunde Bakare
18. Weekly Economic
and Financial Commentary - Week Ended Oct 04, 2019
19. Nigerian Banks
Improve NPLs Post-recession
20. The Stagflation
Spectre Looms - LBS Executive Breakfast Session - Oct 2019