The South Africa-Nigeria Chamber of Commerce (SA-NCC), to be launched on Thursday, aims to address the challenges faced by South African companies doing business in the continent’s biggest market and to help them understand and adapt to Nigeria’s rules and culture, which differ markedly from South Africa’s.
The launch highlights the rapidly increasing business ties between Africa’s two regional powers.
The SA-NCC will be the counterpart to the Nigeria-South Africa Chamber of Commerce established in Nigeria in 1999, which currently has more than 250 members. A founder member of the local chamber, KPMG’s Yunus Suleman, was also instrumental in setting up the chamber in Nigeria.
“Nigeria can become South Africa’s largest trading partner on the continent due to the significant increase in trade over the last few years. And South African companies are less sceptical now than ever before. But there is still a concern about the risk of retrospective regulatory changes that impact on anticipated returns on their investments,” Suleman said in a statement on Tuesday.
Companies driving the initiative include Nampak, KPMG, Standard Bank, MTN, Phillips and Plessey.
Nigeria is South Africa’s biggest trading partner in West Africa, and its third biggest on the continent after Mozambique and Zimbabwe.
South Africa’s exports to Nigeria have grown from R291-million in 1998 to R1,6-billion in 2001, and last year reached a high of R2,96-billion. Imports have also risen from R493-million in 1998 to R1,6-billion in 2001 and a massive R5,2-billion in 2004, primarily because of crude oil imports.
Services offered by the chamber include identifying business opportunities and potential partners, verification of business associates, market research, risk management, basic regulatory advice, representation at trade fairs, discounted rates for its seminars and events, and assistance in organising business trips to Nigeria. — I-Net Bridge