Deputy President Mbete to host Nigerian counterpart

Pretoria – South African Deputy President Baleka Mbete will on Tuesday 9 December 2008 hold bilateral political, economic and trade discussions with her Nigerian counterpart Vice President Goodluck Jonathan at the Presidential Guesthouse in Pretoria.  Vice President Jonathan is scheduled to arrive in South Africa on Monday 8 December 2008.

Nigeria is considered as one of South Africa's most important partners on the African continent in pursuing the vision of an Africa renewal.

Accordingly, issues on the agenda of discussions between Deputy President Mbete and Vice President Jonathan are expected to include, among others:

• The status of bilateral political, economic and trade relations between the two countries;
• Activities for the commemoration of the 10th Anniversary of the BNC;
• Political and socio-economic continental and regional developments;
• Conflict resolution and peacekeeping initiatives currently underway in Africa; and
• Issues of global interest.

The seventh session of the BNC took place in Abuja from 21 - 23 May 2008 followed by the signing of the Agreement on Tourism and Cooperation.  The two parties expressed intention to set up the Nigeria – South Africa Presidential Advisory Committee on Investment to facilitate and fast-track investment flow from both countries.

While in South Africa Vice President Jonathan will also interact with members of the Nigerian community resident in South Africa.

Vice President Jonathan is scheduled to depart from South Africa on Thursday 11 December 2008.

Bilateral Economic Co-operation

Nigeria is regarded as West Africa's economic giant, contributing over 40% of West Africa's Gross Domestic Product (GDP). It presents investment opportunities in different sectors of the economy.

Petroleum plays a major role in the Nigerian economy, accounting for 40% of the country’s GDP. Nigeria is the 12th largest producer of petroleum in the world and the 8th largest exporter, and has the 10th largest proven reserves.

Nigeria recently launched what is termed the Vision 2020 Project, intended to make Nigeria one of the strongest emerging economies by the year 2020, on the scale of the progress achieved by India and China.

With its large population and natural resources the country has become South Africa’s most important trading partner on the continent.

Nigeria presents huge opportunities for South Africa exports into the country. The trade relations between Nigeria and South Africa registered substantial growth over the period 1999 to 2007, from R181 3578 000 to almost R11 billion in 2007. This increase in growth can be attributed to an increase in the demand for energy resources in South Africa; hence 98% of imports from Nigeria is crude oil.

Prior to 1999, there were only four South African companies in Nigeria. Since 1999, the situation has changed dramatically, with over 100 companies currently doing business in Nigeria. Over the years South African companies have become major players in almost all sectors of the Nigerian economy.

The biggest investment by South African companies in Nigeria has been in the telecommunication sector. Other markets that South Africa is currently a player includes the banking sector, the property sector, the retail sector, the entertainment sector, and the fast food sector.

Some of the evidence of South African investments in Nigeria includes the following: Standard Bank South Africa, which recently took over IBTC bank. Also, South Africa holds approximately 50% share of the fast food industry in Nigeria.

South African companies are also involved in the media and entertainment sector, with DSTV being a major force in the television industry. Arivia.Com was provided with a contract by the Nigerian government to assist with running the country's lottery. MTN and Telkom also have considerable shares in the telecommunications industry.

Although South African businesses have penetrated the Nigerian sectors such as retail, banking and finance, mining and tourism, agriculture and construction and tourism, these industries still present a lot of opportunities for South Africa and competition in these markets is still limited. Furthermore, the privatisation of state assets such as coal, telecommunications, pharmaceuticals, electricity, deregulation of the oil and gas industries, also presents fundamental investment opportunities.

Media Programme for Incoming Nigerian Working Visit, Monday 8 – Wednesday 10 December 2008

Issued by Ronnie Mamoepa on 082 990 4853

For further information contact Manusha Pillai on 082 389 3587

Issued by Department of Foreign Affairs
Private Bag X152
Pretoria
0001

8 December 2008