President Cyril Ramaphosa of South Africa has expressed his country’s readiness to collaborate with Nigeria to harness critical minerals, particularly lithium, to drive the green energy transition and support the development of electric vehicles (EV) batteries.
Speaking on Tuesday in Cape Town, South Africa, at the Nigeria -South Africa Business Roundtable, President Ramaphosa proposed leveraging Nigeria’s vast lithium reserves as a cornerstone for industrialisation efforts in the EV sector.
He urged the private sector and development finance institutions to collaborate in building infrastructure and scaling up manufacturing capabilities in this sector.
According to him: “There is also much opportunity for cooperation on pharmaceuticals. Our two countries are strategically positioned to benefit from the rapid growth of clean energy manufacturing industries.
“South Africa has developed a Just Transition Framework and an Investment Plan that anticipates massive investments in renewable energy and the green economy over the next few years.
“As part of the broader global transition to a low-carbon economy, we must leverage the abundant natural resources that exist in our countries to promote green industrialisation.
“We should leverage each other’s capabilities in minerals processing. We must work together to ensure critical minerals are beneficiated at source. We call on businesses to support and involve themselves in these initiatives”.
Ramaphosa also disclosed that South Africa will “keenly” support the bid of Nigeria, “a valued sister country”, to become a member of the G20 club of the world’s major economies.
He gave the promise at the official launch of South Africa’s presidency of the G20 in Cape Town, few minutes before he received President Tinubu at Tuynhuys to co-chair the 11th Bi-National Commission between Nigeria and South Africa,
Ramaphosa reiterated this stance during his tete-a-tete with President Tinubu and the expanded meeting with officials of both countries at the BNC.
South Africa and the African Union are the continent’s only representatives in the G20.
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Ramaphosa said other key African countries should also be admitted to the club “so that we can raise the voice from Africa, the neglected continent for the longest time.”
He noted that South Africa had been the lone voice for Africa in the G20 before the admission of the African Union last year after his country had lobbied for it to become a member.
“We have a voice, we have a presence, and we will be the biggest growth story in years to come.
“Our population is going to grow by leaps and bounds, and therefore, as a continent, we are going to be a big noise, and we want that big noise to be recognised in the form of countries that will be part of the G20 right now,” he said at the official launch of the G20 presidency.
Nigeria and South Africa have also fully activated the Joint Ministerial Advisory Council on Industry, Trade, and Investment to enhance economic cooperation between the two leading African economies.
Ramaphosa who stated this at the Nigeria -South Africa Business Roundtable
recalled that the Joint Ministerial Advisory Council on Trade was launched during his State Visit to Nigeria in 2021. Its aim was to address trade and investment challenges, foster policy alignment, and create a conducive environment for business growth in both countries.
His words: “Today, we agreed on the full operationalisation of the Council. This will support a conducive environment for improved trade and investment. Through the Council, we hope to ensure the efficient resolution of trade- and investment-related challenges.
He acknowledged the strategic importance of both nations in their respective regions and the need to diversify trade relations to move beyond oil and gas dependency.
“South Africa runs a large trade deficit with Nigeria, mainly due to oil and gas imports. We need to diversify our trade to ensure a mutually beneficial partnership.
“We are greatly encouraged by the presence of South African companies in Nigeria, just as we welcome Nigerian companies in South Africa.
“We do recognise that challenges still exist within our respective operating environments that limit the expansion of investment and sometimes impact on the operations of companies,” he said.
At the roundtable, President Bola Tinubu assured that Nigeria is open for business and ready to provide stability, security, and the rule of law for businesses to thrive.
At the event attended by business leaders, government officials, and trade stakeholders, Tinubu expressed commitment to address issues discouraging South African investors from growing their businesses and franchises in Nigeria and called on South Africa to reciprocate by allowing Nigerian companies to operate and flourish in South Africa.
He assured that Nigerian officials would continue collaborating with their South African counterparts to facilitate the implementation of the agreed mandates under the Bi-National Commission.
“Nigeria and South Africa are co-joined twins tied by the hips not only for survival but for the prosperity of the people,” he said.
President Tinubu said Nigeria is undergoing very stringent positive economic reforms to serve the people of Nigeria and bring prosperity to Africa.
“The reforms have begun to see the light of the day. You have no better investment than in Nigeria. You cannot earn better on your investments elsewhere except in Nigeria,” he said.
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