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Tag: S/Africa

  • BNC: Nigeria offers secure, legally protected business environment to S’Africa

    BNC: Nigeria offers secure, legally protected business environment to S’Africa

    …as both nations operationalise advisory council to boost trade, investment

    Nigeria has assured South Africa of a safe, secure and legally protected business atmosphere within its borders for all foreign investments in the country. 

    President Bola Ahmed Tinubu gave these assurances on Tuesday during the Nigeria -South Africa Business Roundtable held in Cape Town. 

    Meanwhile, President Cyril Ramaphosa of South Africa has disclosed that Nigeria and South Africa have fully operationalised the Joint Ministerial Advisory Council on Industry, Trade, and Investment. 

    This operationalisation of the Joint Ministerial Advisory Council, according to a statement issued on Wednesday by Special Adviser to President Tinubu, Bayo Onanuga, is aimed at enhancing economic cooperation between the two leading African economies.

    At the roundtable, President Tinubu assured that Nigeria is open for business and ready to provide stability, security, and the rule of law for businesses to thrive.

    At the event attended by business leaders, government officials, and trade stakeholders, President Tinubu expressed commitment to address issues discouraging South African investors from growing their businesses and franchises in Nigeria and called on South Africa to reciprocate by allowing Nigerian companies to operate and flourish in South Africa.

    President Tinubu assured that Nigerian officials would continue collaborating with their South African counterparts to facilitate the implementation of the agreed mandates under the Bi-National Commission. 

    “Nigeria and South Africa are co-joined twins tied by the hips not only for survival but for the prosperity of the people,” he said. 

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    President Tinubu said Nigeria is undergoing very stringent positive economic reforms to serve the people of Nigeria and bring prosperity to Africa.

    “The reforms have begun to see the light of the day. You have no better investment than in Nigeria. You cannot earn better on your investments elsewhere except in Nigeria,” he said. 

    President Ramaphosa recalled that the Joint Ministerial Advisory Council on Trade was launched during his State Visit to Nigeria in 2021. Its aim was to address trade and investment challenges, foster policy alignment, and create a conducive environment for business growth in both countries.

    “Today, we agreed on the full operationalisation of the Council. This will support a conducive environment for improved trade and investment.

    “Through the Council, we hope to ensure the efficient resolution of trade- and investment-related challenges,” he said.

    He acknowledged the strategic importance of both nations in their respective regions and the need to diversify trade relations to move beyond oil and gas dependency.

    “South Africa runs a large trade deficit with Nigeria, mainly due to oil and gas imports. We need to diversify our trade to ensure a mutually beneficial partnership.

    “We are greatly encouraged by the presence of South African companies in Nigeria, just as we welcome Nigerian companies in South Africa. 

    “We do recognise that challenges still exist within our respective operating environments that limit the expansion of investment and sometimes impact on the operations of companies,” he said.

  • Nigeria, S/Africa set March date for signing MoU to prevent violent attacks

    Nigeria, S/Africa set March date for signing MoU to prevent violent attacks

    …take joint position on Middle East crisis

    To forestall threats of violence, acts of criminality, and reprisals involving nationals of Nigeria and South Africa in the future, both countries have agreed to finalise the Memorandum of Understanding (MoU) on the Early Warning Mechanism.

    The five-year-old MoU was structured to monitors threats of violence, acts of criminality, and reprisals involving nationals of both countries.

    A statement issued by Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the decision was revealed on Tuesday in a communiqué released at the end of the 11th session of the Nigeria-South Africa Bi-National Commission (BNC) in Cape town.

    President Bola Tinubu and President Cyril Ramaphosa co-chaired the meeting.

    In the wake of the attacks on Nigerians in South Africa, both countries agreed to establish an Early Warning Mechanism to prevent such attacks.

    Before the 11th BNC meeting, both parties agreed to harmonise all contentious areas, conclude, and present during the 11th session of the BNC.

    The joint communique, read by South Africa’s Minister of International Relations and Cooperation, Ronald Lamola, said the two leaders underscored the urgent need to finalise the MoU.

    “To this end, it was agreed that the MoU will be signed no later than March 2025, during the visit of the South African Minister of International Relations and Cooperation to Nigeria for political consultations,” Lamola said.

    Presidents Tinubu and Ramaphosa welcomed the ongoing negotiations to conclude other new agreements.

    According to the communique, both leaders renewed their commitment to work closely to broaden and sustain the two nations’ bilateral relationship to enhance strategic cooperation and partnership for mutual benefit.

    “In this regard, the Heads of State and Government directed the various Ministries, Departments and Agencies to deepen their cooperation in the context of the BNC.

    “The Heads of State and Government welcomed the high levels of economic cooperation between the two countries.

    “In this regard, they welcomed the significant investments of South African companies in Nigeria and encouraged corresponding Nigerian investments in the South African economy.

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    The joint communique read, “The leaders recognised the need for the two countries to create an enabling business environment.”

    On the African Continental Free Trade Area (AfCFTA), which both Nigeria and South Africa have ratified, the two leaders committed to working towards increased and balanced trade between the two countries by utilising the opportunities provided by the agreement.

    Nigeria and South Africa also agreed to collaborate on programmes that address mutual challenges in food and nutrition security, strengthen meaningful digital connectivity, and take leadership in developing artificial intelligence.

    They also committed to expanding digital literacy initiatives and prioritising data protection and online safety for all citizens.

    Nigeria and South Africa affirmed their resolve to coordinate their positions on the upcoming African Union elections to ensure the election of candidates committed to advancing the continent’s development agenda.

    They reiterated their mutual support for equitable representation within African Union institutions that reflect the continent’s diverse perspectives.

    South Africa congratulated Nigeria on the reappointment of Dr Ngozi Okonjo-Iweala as the Director General of the World Trade Organisation, as both countries agreed to work closely together in international organisations.

    South Africa solicited Nigeria’s support for its candidate, Ms Swazi Tshabalala, for the position of President of the African Development Bank.

    Equally, Nigeria solicited South Africa’s support for the re-election of Ambassador Bankole Adeoye as the African Union Commissioner for Political Affairs, Peace and Security.

    The Heads of State and Government are committed to working closely with the African Union and each other to advance the African Agenda in pursuit of the implementation of Agenda 2063.

    Nigeria highlighted its efforts, as well as those of other members of the ECOWAS bloc, to foster and promote peace and security.

    South Africa also outlined the efforts undertaken by the Southern African Development Community to support peace initiatives in the eastern Democratic Republic of the Congo and northern Mozambique.

    “The Delegations also underscored the need to redouble efforts to realise the African Union Agenda 2063 Aspiration to “Silence the Guns”.

    “In this regard, the Heads of State and Government expressed concern at the devastating conflict in Sudan, which has resulted in the loss of lives, destruction of infrastructure and property and a humanitarian crisis.”

    Similarly, the two presidents agreed to intensify support for the cause of Western Sahara for self-determination, freedom, and justice.

    Nigeria congratulated South Africa on its assumption of the G20 Presidency on December 1, 2024. It commended South Africa on its priorities: inclusive economic growth, industrialization, inequality reduction, food security, artificial intelligence, data governance, and innovation.

    On the escalating crisis in the Middle East, the two countries adopted a joint position calling for an immediate ceasefire and a return to diplomacy.

    They emphasised the importance of upholding international humanitarian law, ensuring the protection of civilians, and promoting sustainable peace in the region.

  • Inauguration: Osinbajo to represent Nigeria in S/Africa

    Vice President Yemi Osinbajo will represent Nigeria at today’s inauguration of South Africa’s President, Cyril Ramaphosa, in Pretoria.

    Prof. Osinbajo, according to a statement by the Senior Special Assistant on Media and Publicity, Laolu Akande, would be joining other heads of state and government from Africa and beyond who are expected at the swearing-in ceremony in Loftus Versfeld Stadium.

    The Vice President who left Nigeria yesterday’s evening would be accompanied by the Foreign Affairs Minister, Geoffrey Onyeama

    He is expected back in Abuja in the evening.

  • S/Africa cuts power for second day running

    South African state utility, Eskom, implemented a second day of electricity cuts yesterday, citing power plant breakdown for the cut.

    The company said in Johannesburg, it would cut 2,000 megawatts (MW) of electricity from the national grid on a rotational basis probably until 2100 GMT.

    Eskom supplies more than 90 per cent of South Africa’s power, but has suffered repeated faults at its coal-fired power stations and is laden with 420 billion rand ($29 billion) of debt.

    On Thursday, it cut the same amount of power, saying around 12,000 MW of its roughly 45,000 MW generating capacity was offline because of unplanned outages, including at faulty new mega plant, Kusile.

    Eskom’s problems are a big challenge for President Cyril Ramaphosa as they are stymieing efforts to haul the economy out of a slump before a national election in May.

    Ramaphosa’s government has promised to inject 23 billion rand a year over the next three years to shore up Eskom’s finances.

    Ramaphosa has also asked a team of experts to come up with a plan to fix Eskom’s creaking coal plants.

  • Nigerian stabs two friends to death in South Africa

    Nigerian stabs two friends to death in South Africa

    A Nigerian living in South Africa has killed two of his friends after a business deal involving the three went awry, the Nigerian Community in that country said yesterday.

    The suspect named simply as  Sunday from Awgbu in Anambra State allegedly stabbed Ekweghiariri Chidi Isacc, 34, from  Ehime in Isiala Mbano Local Government of Imo State and Mr Nzechukwu Alabuche, 35, from Azia in Anambra to death at about 3am local time

    The incident occurred at Rossetinville, South of Johannesburg, according to Mr Emeka Ezinteje, Secretary of the Nigerian Union in South Africa

    He said by phone from Johannesburg, South Africa, that the incident was due to a business dispute.

    His words: “We have received a report that at 3.00am on Saturday, Mr Ekweghiariri Chidi Isacc, 34, a native of Ehime in Isiala Mbano Local Government of Imo and Mr Nzechukwu Alabuche, 35, from Azia in Anambra were stabbed to death by one Sunday from Awgbu in Anambra.

    ”We understand that there was a business dispute between them that made the assailant to stab the victims to death.”

    He said that the union had reported the incident to the Nigerian mission and the South African police.

    “The assailant is on the run while the police have commenced investigation into the incident.

    ”The union condemns the killing of any Nigerian and will partner with relevant government agencies to ensure that justice is done in the case,” Ezinteje said.

    The secretary said that the police had taken the bodies to the hospital for autopsy.

     

  • Jonathan attends African Presidential Leaders’ Summit in S/Africa

    Jonathan attends African Presidential Leaders’ Summit in S/Africa

    Former President Goodluck Jonathan will this weekend leave for South Africa where he is scheduled as a key speaker at the inaugural African Presidential Leaders’ Centre Roundtable holding in Johannesburg.

    The ex-President will be joined by other former Presidents and eminent African statesmen to explore how the continent’s economic growth could be enhanced through functional education.

    The theme of the conference is “Addressing Africa’s Educational Challenges in the 21st Century”.

    Speaking ahead of the meeting ex-President Jonathan, who is also the Chairman of the Goodluck Jonathan Foundation, said he is excited by the theme of the meeting, stressing that education is key to unlocking Africa’s rich potential  and solving the nation’s economic, social and security challenges.

    A statement issued by the ex-President’s media adviser Mr. Ikechukwu Eze, said that at the end of the programme , the former President is billed to proceed to Liberia where he would be leading the National Democratic Institute’s International Election Observation Mission to the Liberian presidential run-off polls holding  November 7.

    Ex-President Jonathan who was initially invited as co-lead of the NDI team for the October 10 Liberian elections could not honour the invitation because of his earlier commitment to attend the 15th Rhodes Forum in Greece, where he presented a paper on ‘Multipolarity and Dialogue in Regional and Global Developments’.

    He had however promised to honour NDI’s second invitation to lead the Mission to the runoff polls, after none of the presidential candidates failed to win 50 percent of votes cast during the first ballot.

  • Recession: What S/Africa and Nigeria must learn

    If the rest of Africa expects Nigeria and South Africa to chart a pathway and provide some sort of economic leadership, they would have to look elsewhere for the time being. Africa’s two biggest economies, with a combined Gross Domestic Product (GDP) of nearly $800 billion are both in recession at the same time, for the first time ever in the modern history of the continent.

    The time of arrival at this recessive destination may be different for both Nigeria and South Africa, but the navigation patterns bear a striking resemblance. The combined forces of corruption, public finance profligacy and in the case of South Africa, political instability, have stripped both countries of veneer of economic growth over the last one decade.

    For the average Nigerian and South African currently bearing the brunt of the reckless economic decisions and financial mismanagement of those entrusted with power, endless debates and analysis offer little or no reprieve.

    Nigeria slipped into recession in Q2 2016, a year after the historic election that produced Muhammadu Buhari, a former military leader and staunch anti-corruption advocate, as President. Buhari’s predecessor, a former governor from the oil-producing Niger Delta, presided over what observers say is one of the most corrupt regimes in the history of the country.

    Corruption has proved to be a recalcitrant encumbrance to the development of Africa’s most populous nation. A recent report by Chatham House, London, puts the amount stolen from Nigeria’s treasury between 1960 and 2014 by corrupt public officials at $400 billion.

    South Africa is not without its own corruption challenges, even if the amounts involved are not as staggering as the ones in Nigeria. Diversion of public funds by politicians and public officials away from service delivery into private pockets is rife. President Jacob Zuma for example is alleged to have diverted R246 million of public funds to upgrade his private home.

    Since 2009, South Africa has dropped 17 places on Transparency International’s Global Corruption Perception Index, 34 places since 2001. Between R25 billion and R30 billion is lost to loopholes and imbalances in government procurement processes each budget year according to a 2011 report by Willie Hofmeyer, former head of the Special Investigation Unit.

    Economic analysts did not foresee Africa’s most industrialized economy going into a recession this year, but they should have. South Africa’s GDP contracted 0.3 percent in the last quarter of 2016, and its government needed to initiate short-term reforms to stem the tide. Instead, President Jacob Zuma fired the country’s finance minister, further compounding the political turmoil with economic uncertainty already prevalent in the country.

    The ill-guided and mistimed ousting of Pravin Gordhan, who was in London meeting with investors and South Africa’s economic partners, sent the Rand tumbling against the US dollar. The erstwhile economic minister is credited with stabilizing South Africa’s economy since his appointment in December 2015 after President Zuma had sacked two other finance ministers within a month.

    Gordhan is a vocal critic of corruption in state-owned companies and is thought to have clashed with Zuma over the operations of enterprises owned by the South African government. Most of South African state-owned enterprises (SOEs) have been operating at a loss over the years, and the bailouts required to keep them insolvent have been a massive strain on the economy. In 2015 alone, the South African government spent nearly 10 percent of its total annual budget in servicing debts and paying money to help these companies.

    State-owned national carrier, South African Airways, reported a R1.5 billion loss for the 2015/2016 financial year, after losing R5.6 billion the year before. The airline is being kept in the skies with R20 billion by the South African government – money that should be put to good use elsewhere.

    It is a similar story with state-owned regional airline, South African Express, and low-cost carrier, Mango. Both companies reported huge losses in the 2015/2016 financial year, and the year before that. Indeed, over the past 10 years, these three airlines, South African Airways, South African Express and Mango, have made a combined R35 billion in operational losses and state bailouts.

    The unhealthy obsession of the South African government with SOEs transcends airlines. Broadbrand Infraco needed a R500 million from the government to sustain its operations in 2015 and has consistently made losses since 2010. Passenger Rail Agency of South Africa ran into a R600 million loss in 2015, and R1.2 billion in the year before that. South African Post Office posted a loss of R1.4 billion in 2015. PetroSA however takes the cake for the biggest ever loss incurred by a state company in the history of South Africa with R14.5 billion.

    As Africa’s largest oil producer, Nigeria has little infrastructure to show for the hundreds of billions earned from crude oil sales over the years. Humongous sums have been lost to questionable subsidy regimes that should never have existed but for gross incompetence and corruption. The nation’s petroleum minister recently revealed that $65 billion was spent on petrol and kerosene subsidies between 2011 and 2015. That amount is higher than the GDP of Kenya, and much of it ended up lining private pockets while the masses still bought fuel at higher prices.

    To get out of recession and return to the path of economic growth, both Nigeria and South Africa will have to implement key reforms in departure from the archaic and unprofitable way of running government. Nigeria’s Vice President Yemi Osinbajo, had to publicly reject the offer of a new official residence at the cost of N7 billion. While that is commendable, the offer should never have been on the table to start with.

    Malusi Gigaba, South Africa’s fourth finance minister in less than 18 months, and his Nigerian counterpart, Kemi Adeosun, are faced with the task of convincing their respective governments that recession provides an opportunity to turn a new leaf in public expenditure.

    Nigeria has made some progress in improving the ease of doing business and creating an enabling environment for investors and business owners. More needs to be done. The 2017 budget, expected to be financed largely through loans, contains too many frivolous items gulping funds that should be ploughed into developmental projects.

    The appetite of the South African government for controlling enterprises that are best operated by private ventures will have to be curbed. The cost of running government remains high at the detriment of the economy. Investors’ confidence, eroded in no small measure by the abrupt removal of the former finance minister, has to be regained.

    Size matters, a combined GDP and population of nearly $800 billion and about 230 million people, matter to the rest of Africa. But if size is not put to good use, it becomes a burden. The highest unemployment rate in the history of South Africa, and nearly 10 million out-of-school children in Nigeria are handwritings on the wall for this fact.

    South Africa in particular must watch out for the effects of the political wrangling bound to get worse around the leadership tussle in the ruling African National Congress, ANC and the 2019 general elections. While the feelers indicate Nigeria may be getting out of the recession soon, the country must understand that it cannot build a thriving economy based on the rules of the past. Africa’s largest countries and by far its most important economic hubs must do better to help move the country in the direction of economic freedom and prosperity.

     

    • Omojuwa is editor of AfricanLiberty.org.

  • S/Africa pulls out of  ICC

    South Africa yesterday served notice of its withdrawal from the International Criminal Court  (ICC),the second African nation after Burundi to do so.

     Justice Minister Tshililo Michael Masutha said the notice had been submitted to the United Nations (UN) Secretary General.

    The pull-out will become effective a year from now.

    Masutha told reporters that the ICC’s obligations are incompatible with laws giving sitting  leaders diplomatic immunity.

    “The implementation of the Rome Statute of the International Criminal Court Act 2002 is  in conflict and inconsistent with the provisions of the Diplomatic Immunity and Privileges Act 2001,” he told reporters.

    He said a bill on the matter would soon go to the parliament.

    International Relations Minister, Maite Nkoana-Mashabane, said separately that South Africa’s  laws are  incompatible with obligations under the ICC.

  • S/Africa’s Petrocam to build refinery in Nigeria

    The list of International Oil Companies (IOCs) wishing to build refineries in Nigeria has swollen with the latest interest coming from Petrocam, a South African-based oil firm.

    The company, which is known in crude oil trading in Africa and beyond, said its decision was borne out of the need to explore opportunities in crude oil processing in Nigeria.

    The United States (US)-owned oil giants – Chevron and ExxonMobil – as well as Royal Dutch Shell and Italian oil giant, Eni, have indicated interests in building refineries in Nigeria to boost fuel supply and add value to the industry.

    The Chief Executive Officer, Petrocam Trading Nigeria Limited, a partner to Petrocam South Africa, Mr. Patrick Ilo said his firm would like to improve the production and supply of fuel in the country by building a refinery.

    According to him, Petrocam would look at the guidelines for building refineries, and afterwards go ahead to set up a refinery immediately it is satisfied with the guidelines.

    Ilo said: “We, at Petrocam would not hesitate to have our own refinery in Nigeria once we are satisfied with the guidelines, introduced by the Federal Government to guide the operation of refineries.  We would, in the first place, set up a modular refinery and thereafter, build a bigger refinery in order to process crude oil in large quantities and further help in improving supply of petroleum products in the country.”

    On competition, Ilo said his firm would stave off competition from other companies that are investing in refineries if it sets up a refinery. He said the more investors in refineries, the better for the downstream segment of the industry.

    ‘’Competition is good for the development of any nation’s economy.  For a country’s economy to develop, it must accommodate many players. Anything short of this will affect growth.  As regards private refineries, there will be competition among the operators, and the competition will in turn drive the growth of the industry. In view of this, competition is welcome,” he said.

    Ilo said a company in search of growth must create a niche for itself, especially in a highly competitive and sensitive sector such as oil and gas.

    Petrocam, he said, has carved a niche for itself by building solar-powered fuel retail outlets in Nigeria, adding that the firm is not afraid of competition from rivals such as Conoil, MRS and others.

    He said Petrocam constructed solar-powered outlets in order to make a difference and further ensure an uninterrupted supply of fuel.

    Also, a former President, International Association of Energy Economists (IAEE), Prof. Adeola Akinnisiju, said the decision of the Federal Government to allow private institutions to operate refineries would boost fuel supply and further engender competition in the industry.

    Firms such as Seplat, Integrated Oil Nigeria Limited, and Dangote Group have shown interests to build refineries. Dangote Petrochemical Refinery Limited is expected to refine over 600,000 million barrels of crude daily when it begins operation. In addition, other investors will produce various quantities from their refineries, signaling an end to the nation’s fuel problem.

  • Report forecasts promising future for Nigeria, S/Africa others

    Africa is now positioning itself as a major business opportunity for overseas investors, according to The Institute of Chartered Accountants in England and Wales’ latest Economic Insight Africa Q3 2015 report.

    Commissioned by ICAEW and produced by the Centre for Economics and Business Research Ltd, the report provides a snapshot of the region’s economic performance focusing specifically on Kenya, Tanzania, Ethiopia, Nigeria, Ghana, Ivory Coast, South Africa and Angola.

    According to the report, and drawing on estimates prepared by the World Bank, the total level of external financial inflows into Africa has increased from $40.4bn in 2000 to $192bn in 2013. This is largely attributed to the inward FDI from China with investment mainly going into primary resource sectors and infrastructure.

    Michael Armstrong, Regional Director, ICAEW Middle East, Africa and South Asia, said: “China has approached African economies in a very different way to Europe, focusing less on official aid and engaging more aggressively through foreign direct investment and trade. This has been a game changer for the development industry, forcing European countries to rethink their strategy of connecting with the continent.”

    At turn of the century, private finance constituted 62% of African economies’ total inflows. Today, that number has risen to over 70%, signalling a shift in investors’ perceptions of the market. Thanks to resource wealth, West Africa and Southern Africa are leading the way, attracting the majority of FDI; though East Africa is catching up. This is partly thanks to efforts for closer integration in the East African Community (EAC), which has involved harmonising investment regulations across the region and reducing red tape.

    According to Danae Kyriakopoulou, ICAEW economic adviser, “While economic development naturally varies across the continent, Africa’s regional outlook as a whole remains bright with a number of projects expected to bolster growth.”

    The report also shows Nigeria is expected to experience growth in the medium term helped by higher oil prices and the implementation of reforms while annual GDP expansion of 8.5% is expected for Ghana by 2017.

    Ivory Coast is expected to remain on a high growth path into 2016 while growth in Angola is expected at 4% with the pace of GDP expansion in South Africa is forecast to see a gradual pick-up over the next