African Brand Link, in partnership with the South Africa Nigeria Chamber of Commerce, recently held a very successful and informative forum at The River Club in Cape Town during which both the opportunities as well as the challenges of trading into Nigeria were highlighted.
Nigeria and South Africa are, respectively, the largest and second largest economies on the African continent, and had bilateral trade worth $2.5bn in 2016. The balance of trade is skewed in Nigeria's favour due to the large proportion of petroleum products imported by SA from Nigeria, but the trade imbalance has been improving over the past few years. A similar scenario is true of bilateral trade between the Western Cape and Nigeria, valued at US$935m. The primary exports from the Western Cape to Nigeria are fresh fruits such as apples, boats, and flat-rolled steel products.
Areas such as market penetration strategies, logistics/documentation/certification, and financial issues were all discussed to better inform not only those that are considering the Nigerian market for their products or services, but also for those already exporting there who were happy to gain further insights.
The intricacies of the Form M, Nafdac and/or Soncap registrations, as well as such issues as the new requirement that ALL product going into Nigeria must now be palletised for ease of inspection, were all touched upon, and the Consul General of Nigeria to South Africa, The Honourable Godwin Adama, gave all present assurances that measures are being put in place to ease business linkages between the two largest economies on the continent. One of the key areas receiving attention is the length of time it takes to obtain Nafdac registration; this was taking a very long time in the past, but will now be shortened to a 3 month window.
We will be hosting more such events, and will keep you updated per an events calendar of upcoming interactions.
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