The meeting is expected to include discussions on the status of bilateral political, economic and trade relations between the two countries; political and socio-economic continental and regional developments and conflict resolution and peacekeeping initiatives currently underway in Africa.
The pair will also discuss activities for the commemoration of the 10th Anniversary of the Binational Commission.
The 7th session of the Binational Commission took place in Abuja in May followed by the signing of the Agreement on Tourism and Co-operation. At the time the two parties expressed intention to set up the Nigeria - South Africa Presidential Advisory Committee on Investment to facilitate and fast-track investment flow from both countries.
According to the Department of Foreign Affairs, Nigeria is considered one of South Africa's key partners on the African continent in pursuing the vision of an Africa renewal.
Due to its large population and natural resources it is also a major trading partner. Nigeria presents huge opportunities for South Africa exports into the country.
The trade relations between Nigeria and South Africa registered substantial growth over the period 1999 to 2007, from R181,3578,000 to almost R11 billion in 2007. This increase in growth can be attributed to an increase in the demand for energy resources in South Africa, hence 98 percent of imports from Nigeria is crude oil.
Petroleum plays a major role in the Nigerian economy, accounting for 40 percent of the country's Gross Domestic Product. Nigeria is the 12th largest producer of petroleum in the world and the 8th largest exporter, and has the 10th largest proven reserves.
Over the years South African companies have become major players in almost all sectors of the Nigerian economy.
The biggest investment by South African companies in Nigeria has been in the telecommunication sector. Other markets include the banking sector, the property sector, the retail sector, the entertainment sector, and the fast food sector.
Although South African businesses have penetrated the Nigerian sectors, these industries still present a lot of opportunities for South Africa and competition in these markets is still limited.
Furthermore, the privatisation of state assets such as coal, telecommunications, pharmaceuticals, electricity, deregulation of the oil and gas industries, also presents fundamental investment opportunities.
Nigeria recently launched its Vision 2020 Project, which is intended to make Nigeria one of the strongest emerging economies by the year 2020, on the scale of the progress achieved by India and China.
Article published courtesy of BuaNews
