With Nigeria's formal submission of tariff concessions under the African Continental Free Trade Area (AfCFTA) Agreement, South Africa expects improved bilateral trade and greater access to markets within West Africa, said Trade, Industry and Competition Minister Parks Tau.

Nigeria, on April 15, became the twenty-third African Union State to submit its provisional schedule of tariff concessions under the AfCFTA Agreement. This development is expected to accelerate the implementation of the AfCFTA and facilitate broader market access for businesses in both countries, Tau said during the South Africa-Nigeria Private Sector Engagement on April 30.

“While South Africa and Nigeria already enjoy strong political and economic ties, there remains untapped potential to better enhance the depth and mutual benefit of our commercial relationship,” he told business leaders and government officials at the event.

Nigeria remains South Africa’s foremost export destination on the continent. However, in 2024, South Africa recorded a substantial trade deficit with Nigeria, largely owing to oil and gas imports.

Therefore, Tau stressed the need to diversify the trade basket and to reduce dependency on extractive commodities.

Key growth sectors identified for bilateral cooperation include automotive manufacturing, electric mobility, pharmaceuticals, agriculture, and green energy, he highlighted.

Further, as both countries are AfCFTA Digital Protocol signatories, Tau emphasised the importance of joint initiatives in digital trade, infrastructure and the development of technology-intensive global value chains.

The global energy transition was also a historic opportunity for both nations to leverage their respective natural resources toward green industrialisation, the Minister added.

Meanwhile, the AfCFTA Council of Ministers meeting, on April 15, reaffirmed the countries' shared commitment to implementing the AfCFTA Agreement and addressing the rise in unilateral and protectionist trade measures globally, he said.

“The Department of Trade, Industry and Competition stands ready to support your initiatives in navigating the Nigerian market and capitalising on the vast opportunities it presents.

“Let us work together to unlock the full potential of South Africa–Nigeria economic relations for the mutual benefit of our peoples,” he told delegates.