South Africa and Nigeria are reportedly considering establishing ties over automotive component trade, reports news agency Bloomberg. Rob Davies, the minister of South African trade and industry, said in an interview with the news agency, "We're interested in positioning South Africa as the supplier of the [automotive] components that would go into the [vehicle] kits that Nigeria is looking to assemble. The countries have so far not concluded any agreement over the supply of components. We need to pick up the pace of this after the Nigerian elections [scheduled for 28 March]".
Significance: South Africa and Nigeria have long wanted to increase business ties in various sectors, including manufacturing and petroleum, among others, and jointly launched the South Africa-Nigeria Bi-National Commission in 2000, along with the establishment of the South Africa-Nigeria Chamber of Commerce in the same year. The Nigerian government has recently revealed its updated National Automotive Industry Development Policy, under which tariffs on imported fully built-up vehicles are increased from 40% to 70%, prompting several automakers to sign up for local assembly operations.
