Calvin Phume, Director for Africa Bilateral Economic Relations at South Africa's Department of Trade, Industry and Competition (DTIC), has called on Nigeria and South Africa to take the lead in driving the continent's economic integration. In an interview with Isaac Chibuife on the sidelines of South Africa's Freedom Day celebration hosted by the South African Consulate General in Lagos, Phume discussed efforts to strengthen trade and investment ties between the two largest economies in Africa, the implementation of the African Continental Free Trade Area (AfCFTA), visa concerns, and recurring tensions around xenophobia.
Significance of South Africa's Freedom Day in Lagos
Phume explained that the Freedom Day celebration included a series of activities organized by the South African Consulate General Office in Lagos, featuring an official ceremony to mark what South African freedom means to the nation. The event was joined by Deputy Minister Thandi Moraka, who led a business delegation. Meetings were held with the Nigerian private sector to strengthen trade and investment relations and to understand challenges Nigerian businesses face when entering the South African market.
Deepening Bilateral Trade and Investment
Phume acknowledged the good relations between the two countries and a genuine commitment to promote trade and investment. However, he noted macroeconomic challenges in Nigeria, such as foreign exchange (FX) issues. Some South African companies cannot repatriate returns because the Central Bank of Nigeria (CBN) lacks sufficient liquidity. Companies needing to procure products outside Nigeria also face FX allocation obstacles. Both governments are actively working on these challenges. Phume emphasized that South Africa's manufacturing capabilities can help the Nigerian private sector navigate and thrive.
Accelerating AfCFTA Implementation
Regarding the sluggish implementation of the AfCFTA, Phume stated that all 54 African countries except Eritrea have ratified the agreement. The critical next step is domestication into domestic laws; only 23 countries have done so. Both South Africa and Nigeria have completed this process—South Africa on January 31, 2024, and Nigeria on April 15, 2025. This means both countries can now explore preferential trade opportunities under the AfCFTA.
Visa Concerns for Nigerian Business Travellers
Phume dismissed misconceptions that South Africa refuses visas to Nigerians. He emphasized that rules must be followed; if travellers comply, they face no difficulty. The issue often arises when applicants use travel agents who submit fraudulent documentation. For example, a prominent Nigerian businessman handed his passport to an agent without providing required documents like bank statements. The agent fabricated statements, leading to rejection after verification. Phume stressed that every Nigerian must submit genuine documents themselves.
Addressing Xenophobia Allegations
Phume asserted that South Africa is not xenophobic, describing reported incidents as isolated and mischaracterized. He claimed that when law enforcement carries out lawful duties, some Nigerians frame actions as targeted attacks. He suggested that the Nigerian High Commission in Pretoria or Consulate in Johannesburg would clarify the real issues, noting that some Nigerian nationals in South Africa engage in territorial disputes among themselves. Phume expressed concern over coordinated media narratives designed to damage trade and investment relations. At the political level, there is no animosity, with presidential-level engagement and a Joint Ministerial Advisory Council on Industry, Trade and Investment reporting to both presidents under the Binational Commission.
Long-term Vision for Collaboration
Phume stated that all engagements will be reported to the two heads of state, with plans for more substantive meetings next year. He highlighted the immense potential for collaboration on joint projects, identifying complementarities between sectors. South Africa has world-class development finance institutions—the Development Bank of Southern Africa, Industrial Development Corporation, Public Investment Corporation, and Export Credit and Insurance Corporation—collectively known as South Africa Inc. These institutions provide financing for infrastructure and sectors like automotive, agriculture, agro-processing, manufacturing, and pharmaceuticals. The goal is to build shared value chains so both countries can harness AfCFTA opportunities for the entire continent.
