Stakeholders from Nigeria and South Africa have called for deeper economic alignment, increased investment flows and accelerated implementation of the African Continental Free Trade Area (AfCFTA), as both nations position themselves as key drivers of Africa’s growth.
The call was made at the second edition of the South Africa–Nigeria Economic Diplomacy Roundtable held in Lagos, hosted by MTN Nigeria as part of the 2026 South Africa Focus Week.
Speakers at the forum noted that although both countries occupy a strategic place in Africa’s economic structure, their bilateral partnership remains underutilised, stressing the need for deliberate policy coordination and stronger private sector collaboration to unlock its full potential.
Acting Consul General of South Africa in Nigeria, Kgothatso Xulu, said the two economies account for over one-third of sub-Saharan Africa’s Gross Domestic Product (GDP), making their cooperation pivotal to the continent’s development.
“When South Africa and Nigeria align economically, the impact will not only be significant but transformative for the entire continent,” she stated.
Xulu, however, lamented that intra-African trade still accounts for less than 20 per cent of total trade on the continent, underscoring the urgency for deeper regional integration and value chain development.
She identified telecommunications, the digital economy, infrastructure, manufacturing and energy as critical sectors with vast opportunities for both countries to build resilient and mutually beneficial economic partnerships.
The roundtable attracted policymakers, investors and business leaders, all seeking practical pathways to translate bilateral engagements into measurable economic outcomes.
Chief Executive Officer of MTN Nigeria, Karl Toriola, represented by the company’s Chief Marketing Officer, Onyinye Ikenna-Emeka, said the firm’s operations across Africa demonstrate the power of cross-border investments in strengthening economic ties.
He disclosed that MTN has made significant investments in digital infrastructure, including over 135,000 kilometres of fibre networks across the continent, while its mobile financial services platform continues to drive millions of transactions.
According to him, Nigeria and South Africa are not only trade partners but likewise standard setters for Africa’s economic integration.
Also speaking, Chairperson of the Nigeria-South Africa Chamber of Commerce, Ije Jidenma, stressed the need for stronger collaboration in infrastructure, energy, logistics and digital connectivity.
She added that economic diplomacy must move beyond dialogue to building trust and fostering joint ventures capable of driving growth and creating jobs.
On her part, Chief Executive Officer of the Nigerian Investment Promotion Commission, Aisha Rimi, said policy consistency and the removal of regulatory bottlenecks remain critical to attracting and retaining investors.
She urged the private sector to actively engage government institutions in resolving investment challenges, noting that collaboration is essential to achieving the objectives of AfCFTA.
“Without lifting barriers in all forms, AfCFTA will remain a pipe dream. This is the time for collaboration,” she said.
In a related interview, Director for Africa Bilateral Economic Relations at South Africa’s Department of Trade, Industry and Competition, Calvin Phume, emphasised the need for both countries to address structural and macroeconomic constraints to deepen trade relations.
Participants at the forum agreed that the success of the Nigeria–South Africa partnership will ultimately depend on the ability of both nations to translate dialogue into concrete policies and investments that enhance market access and improve the ease of doing business.
AfCFTA Progress and Continental Impact
The African Continental Free Trade Area (AfCFTA) was established in 2018 by the African Continental Free Trade Agreement, which has 43 parties and another 11 signatories, making it the largest free-trade area by number of member states, after the World Trade Organization. According to the African Union, the agreement aims to create a single continental market for goods and services, with free movement of business persons and investments and thus pave the way for accelerating the establishment of the Customs Union. It also intends to expand intra-African trade through better harmonization and coordination of trade liberalization and facilitation regimes and instruments across the RECs and across Africa in general.
The AfCFTA entered into force on May 30, 2019, after being ratified by 22 countries. As of August 2024, 48 African Union member states have ratified the agreement, while 11 have signed but not yet ratified. The agreement covers a market of more than 1.3 billion people and a combined gross domestic product (GDP) valued at approximately US$3.4 trillion, making it one of the largest free trade areas in the world by number of participating countries.
South Africa became the first among the Southern African Customs Union (SACU) countries to start trading under the AfCFTA in February 2024, marking a significant step in the agreement’s implementation. The country’s exports to other AfCFTA member states now account for nearly a quarter of its total global exports, demonstrating early traction in intra-African trade under the framework.
The AfCFTA is one of the flagship projects of the African Union’s Agenda 2063, which seeks to transform Africa into a global powerhouse through inclusive and sustainable development. By reducing tariffs and addressing non-tariff barriers, the agreement aims to boost intra-African trade, which currently accounts for less than 20 percent of the continent’s total trade, according to multiple officials speaking at the Lagos forum.
Nigeria and South Africa: Economic Engines of Africa
Nigeria and South Africa are widely recognized as the two largest economies in Africa, together accounting for a significant portion of the continent’s economic output. While exact figures vary by source and year, both nations consistently rank among the top in terms of nominal GDP on the African continent, with diverse economies spanning energy, telecommunications, finance, manufacturing, and services.
Nigeria, Africa’s most populous nation with over 220 million people, is a major oil producer and has a rapidly growing technology and entertainment sector. South Africa, with a population of approximately 60 million, possesses a highly developed financial and legal framework, advanced infrastructure, and a diversified industrial base. Both countries serve as key investment destinations and gateways to their respective regions—West Africa and Southern Africa.
At the Lagos roundtable, officials emphasized that stronger coordination between Nigeria and South Africa could catalyze broader regional integration, particularly in sectors where both countries have comparative advantages. Telecommunications emerged as a focal point, with MTN Nigeria highlighting its extensive continental footprint, including over 135,000 kilometers of fiber optic cable and a mobile financial services platform processing millions of transactions monthly across multiple African markets.
The Nigerian Investment Promotion Commission (NIPC) reiterated its commitment to improving the investment climate by addressing policy inconsistencies and reducing bureaucratic delays, noting that investor confidence depends on predictable and transparent regulatory environments. Similarly, South Africa’s Department of Trade, Industry and Competition stressed the importance of tackling structural constraints such as logistics inefficiencies and energy reliability to craft cross-border trade more viable and attractive.
Challenges and Pathways Forward
Despite the promise of the AfCFTA, implementation has faced challenges, including delays in ratification, incomplete tariff schedules, and persistent non-tariff barriers such as customs delays, varying standards, and inadequate transport infrastructure. Officials at the forum acknowledged that while political will exists, translating agreements into tangible trade outcomes requires sustained effort from both governments and the private sector.
To accelerate progress, participants advocated for deeper collaboration in five key areas: telecommunications and digital economy, energy access and transition, transportation and logistics infrastructure, industrial manufacturing, and agricultural value chains. They emphasized that joint ventures, public-private partnerships, and harmonized regulatory frameworks could help de-risk investments and create scale in markets that remain fragmented.
The Nigeria-South Africa Chamber of Commerce called for moving beyond dialogue to actionable agreements, including memoranda of understanding on specific projects and the establishment of bilateral working groups to monitor implementation. Such mechanisms, they argued, would help build trust and ensure accountability in turning commitments into results.
Looking ahead, stakeholders pointed to upcoming events such as the Biashara Afrika 2024 forum in Kigali as opportunities to review progress, share best practices, and reinvigorate momentum around the AfCFTA. They also stressed the importance of aligning national development strategies with continental goals to ensure coherence and maximize impact.
As of April 2026, the AfCFTA Secretariat continues to engage with member states and regional economic communities to advance negotiations on protocols covering investment, intellectual property, competition policy, and digital trade—areas identified as critical for realizing the agreement’s full potential.
For the latest updates on AfCFTA implementation, interested parties can consult the official website of the AfCFTA Secretariat or follow announcements from the African Union Commission and national trade ministries.
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