Nigeria seeks to deepen economic ties with South Africa

Nigeria and South Africa are seeking to strengthen their economic ties through increased cooperation and partnership between the two largest economies in Africa, Reuters reports.

Nigerian President Bola Tinubu recently held talks with South African President Cyril Ramaphosa in New York, with the aim of advancing economic cooperation between the two nations.

The meeting took place ahead of the United Nations General Assembly, a significant gathering of world leaders where important discussions and negotiations take place. Tinubu and Ramaphosa highlighted the potential for collaboration between Nigeria and South Africa, particularly in industries such as mining and telecommunications, which can generate employment opportunities for their respective populations.

Nigeria, under President Tinubu’s leadership, has embarked on bold economic reforms aimed at reviving the country’s struggling economy. These reforms include the scrapping of a popular but expensive petrol subsidy and the lifting of foreign exchange trading curbs. With Nigeria burdened by record debt, low economic growth, and high inflation, Tinubu is determined to implement changes that will address these challenges and set the country on a path of sustainable development.

President Ramaphosa commended Tinubu for his courageous economic reforms and expressed South Africa’s commitment to exploring greater partnership with Nigeria. As two major economies on the African continent, the leaders believe that deepening their economic ties is crucial, especially in light of the African Continental Free Trade Agreement. This agreement aims to create a single market for goods and services in Africa, facilitating increased intra-African trade and boosting economic growth across the continent.

Ramaphosa emphasized the importance of Nigeria and South Africa working closely together on various issues, as their joint positions and actions have had a significant impact globally in the past. By collaborating, the two nations can leverage their influence and resources to address common challenges, promote regional stability, and contribute to Africa’s development agenda.

“It is imperative that we acknowledge the need for reform within International Finance Institutions, as Africa must no longer be subjected to economic exploitation. Instead, it should be recognized as a region with talented individuals that is ready for investment and collaboration,” stated Tinubu.

As Nigeria’s president, Tinubu is in attendance at his first UN General Assembly meeting, where he will also have meetings lined up with US President Joe Biden and top executives from Microsoft, Meta, and Exxon Mobil in New York. The purpose of these engagements is to mobilize global capital towards the development of infrastructure in Africa.

Furthermore, Tinubu called on South Africa to join Nigeria in advocating for reforms of global finance institutions that would benefit Africa. As the continent grapples with rising poverty and economic difficulties, there is a need for these institutions to better address the unique challenges faced by African countries.

Tinubu believes that by working together, Nigeria and South Africa can amplify their voices and advocate for changes that will benefit not only their nations but the entire continent.