On the sidelines of the United Nations General Assembly on Monday, the presidents of Nigeria and South Africa discussed expanding their relationship and promised to work together more closely in critical industries. According to experts, growth and development on the African continent would be bolstered if the continent’s two biggest economies collaborated more closely along the lines of the African Continental Free Trade Agreement. Nigerian President Bola Tinubu’s spokesperson revealed that Tinubu’s first encounter with a foreign leader at the 78th U.N. General Assembly was with South African President Cyril Ramaphosa.
His goal is to build up business interest in Nigeria to boost the country’s economy. They discussed working together in the mining and telecom industries, notably addressing the relaxation of stringent corporate policies that deter investment. Tinubu stated that strengthening economic connections would result in the creation of additional jobs and would benefit both nations. According to Nigerian economist Isaac Botti, it’s predicted that having a strong alliance with South Africa will also increase economic growth.
A partnership between both countries will open possibilities.
Economist Botti also stated that an agreement between the two countries would boost, within the framework of the United Nations system, possibilities for growing investments and opportunities for improving sources of revenue because of the fact that South Africa has the second-largest economy in Africa. For instance, he mentioned that in the case where they were able to come to a binding agreement on mining, it would signify that, as a nation, the country would be able to diversify its economic base.
Rotimi Olawale, a political affairs analyst, stated that African nations need to collaborate in order to raise the standard of living and level of health for the millions of people who are currently living in poverty. According to Olawale, the moment has come to start seeing more in-depth interactions between the various players on the continent. When it came down to it, as they witnessed during the Covid crisis, every continent focused their attention inward. The European Union immediately started negotiating as a group in order to get vaccines.
More investment will reform the country’s economy.
Therefore, it is much more vital for countries, particularly the larger ones, to take the initiative in pursuing tighter ties and collaborations with other nations. Tinubu made a commitment to improve Nigerian economy throughout the course of his presidential campaign earlier this year. Since taking office in May, the president has initiated some of the most significant economic reforms the country has seen in several decades. One of these reforms was the removal of a widespread but extremely costly fuel subsidy.
Also, Tinubu is set to meet with President Joe Biden of the United States, as well as officials from Microsoft, Meta, and Exxon Mobil, during this week. According to Olawale, the president is likely to attend other meetings like this one in order to clear the path for international investment. He also reported that he anticipated they would participate in many more gatherings of this type. Several industries, including construction, telecommunications, innovation, and science and technology, desperately need investments in Nigeria.
UAE is also committed to making investments in Nigeria.
Lastly, he expects many of these investment ideas to be at the top of the president’s agenda as he begins to engage with many of these countries. Tinubu paid a visit to the United Arab Emirates the past week when he had a meeting with that country’s president. As a result of the visit, the UAE decided to remove the visa ban for citizens of Nigeria. According to statements made by Tinubu’s office, the UAE has committed to making substantial investments in the Nigerian economy in a variety of fields, including agriculture and the defence sector.