19 - 25 April 2001
Issue No.530
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Al-Ahram Weekly On-line 19 - 25 April 2001 Issue No.530 |
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Odd couple
Africa's two most populous and economically dynamic countries are inching closer together, reports Shalo Mbatha* from Johannesburg
The historic "memorandum of understanding" signed between South Africa and Nigeria last month was cause for celebration. The two African giants dominate the continent's southern and western regions respectively, and until now had been secretly vying for continental leadership. South Africa leads the Southern Africa Development Commission (SADC) and Nigeria is the anchor of the Economic Community of West African States (ECOWAS). South African Deputy President Jacob Zuma led a powerful delegation of business leaders and government officials to the Nigerian capital, Abuja, where they signed an array of historic agreements with Nigerian Vice-President Atiku Abubakar. The accords -- on defence cooperation, agriculture science and technology, arts and culture, merchant shipping and police -- will have a far-reaching impact on the countries' future relations and their influence on the continent.
South Africa was already an influential player in Nigeria. M-Cell South Africa (MTN) won a bid for a Nigerian cellular telephone licence and will invest over $1 billion in the next five years. Transet, South Africa's largest transportation parastatal, is expanding Nigeria's infrastructure. Eskom, the biggest power supplier in Sub-Saharan Africa, and ABSA, South Africa's largest private bank, are expanding their trade, managerial skills and technological know-how to Nigeria. On the security front, arms manufacturer Denel has signed a $20 billion arms deal with the Nigerian Defence Department and the South African government has donated five armoured vehicles to the Nigerian police.
Speaking after the ceremony, Zuma said, "The successful cooperation of the two countries' armed forces will contribute toward the environment of peace, security and stability on the African continent and it will convince the international community that Africa is determined to end its own marginalisation. The signs are out there, the developed nations have tasked President Olusegun Obasanjo, President Abdul Aziz Bouteflika of Algeria and President Thabo Mbeki to develop a plan that will ensure that Africa has the possibility to pull herself out of her current state."
Some Nigerians have the impression that their country is being bought up by South Africa, but their government is quick to dismiss such talk. Abubakar poignantly said, "Nigeria is not for sale, but is open for investment. He conceded that his country desperately needs foreign investment and that an economically powerful country like South Africa needs to 'profitably invest' in Nigeria and help it regain its "lost international credibility." Abubakar highlighted the partnership between South African Airways and Nigeria Airways on the New York route which he said was the envy of other African airlines. He said that Nigerian business leaders were destined to play a major role in South Africa's financial sector, which will have a positive spin-off for the Nigerian economy.
While the memorandum of understanding with Nigeria is impressive, South Africa is known for its violent xenophobia. There are an estimated 4.5 million foreigners in South Africa, most of them illegal immigrants from elsewhere in Africa. Nigerians in particular are a target of police brutality and the general public regards them as drug kingpins. They suffer arrest, torture and even death in police custody. This is despite the fact that many formerly exiled South Africans, including President Thabo Mbeki, received education, training and humanitarian aid from the Nigerian government during the apartheid years.
A South African businessman says, "People are sceptical about doing business with Nigeria because of the Nigerian-factor,' or corruption. But I export mechanical components to a private company in Lagos and we agreed that I am fully paid before the merchandise arrives in Nigeria. And my trade with them has been very profitable."
According to Doyin Abiola, managing editor of Concord Press of Nigeria, it remains to be seen whether these recent agreements will prove successful. "Our country is the only capitalist economy where increased demand for goods and services is a cause for annoyance. The government system is programmed chaos. Newspapers are shut down at random, community radio stations frowned upon and $20,000 needed as an application fee to start one. Businesses survive only because they operate as a local government and provide their own electricity through a generator."
* The writer is a South African journalist at the Sunday Independent, Johannesburg
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