In recent years, the economic relationship between Nigeria and South Africa has flourished, underscoring the importance of cooperation between these two powerhouse nations of Africa.
A report by the Organisation for Economic Co-operation and Development (OECD) reveals that immigrants significantly contribute to South Africa’s economy. Contrary to popular belief, immigration does not diminish job opportunities for native South Africans. On the contrary, certain immigrant groups, including Nigerians, help create jobs and raise the overall employment rate, thereby boosting per capita income. Immigrants also contribute positively to South Africa’s fiscal balance through taxes, and the OECD suggests that improved integration policies could further amplify their economic impact.
Nigerians in South Africa: A Vital Community
Nigerians are among the largest immigrant groups in South Africa, with an estimated 500,000 Nigerians living in the country. This diverse community consists of entrepreneurs, professionals, students, and skilled workers, all of whom contribute significantly to the economy and society.
Despite public perception often associating Nigerians with crime, it is crucial to recognize the entrepreneurial spirit, professional excellence, and academic achievements that many Nigerians bring to South Africa. To highlight this, the Nigeria Community Excellence Award (NECA) has been held annually since 2019 to honor Nigerians who have excelled in various fields. Such initiatives should be supported by the government to challenge stereotypes and foster a more accurate understanding of Nigerians in South Africa.
Economic Contributions of Nigerians
Nigerians are well-known for their entrepreneurial prowess, with many establishing thriving businesses across sectors like medicine, engineering, technology, law, and the creative industries. Studies consistently show that Nigerians are more likely to start businesses and create jobs, playing a pivotal role in South Africa’s job creation and economic development.
Challenges and Misconceptions
While a small number of Nigerians have been involved in criminal activities such as drug trafficking and fraud, these individuals do not represent the broader Nigerian community. Unfortunately, these cases often fuel negative stereotypes and xenophobia, overshadowing the positive contributions of the majority. Addressing these misconceptions requires both a collective effort from Nigerians themselves and support from local communities.
Nigerian Investments and Untapped Potential
Recent investments by Nigerian businesses, such as Access Bank’s acquisition of Bidvest Bank for R2.8 billion, highlight the growing economic relationship between Nigeria and South Africa. Furthermore, Nigeria’s leadership in the Fintech sector offers immense opportunities for South African entrepreneurs. Despite this, many South African entrepreneurs, particularly within the Black community, have not fully leveraged Nigeria’s expertise. With Nigeria’s success in controlling key sectors of its economy, Nigerian professionals can serve as valuable mentors for South African businesses.
Nigeria as a Model for South African Entrepreneurs
Unlike South Africa, where government programs often drive entrepreneurship, millions of Nigerians have built businesses independently, driven by sheer determination. This self-reliant business culture could inspire South African entrepreneurs, particularly Black South Africans, to take charge of their economic future.
The Nigerian High Commission is a strong advocate for greater collaboration between Nigerian and South African professionals, businesses, and academics. In 2025, the High Commission plans to organize the Nigeria Professional Forum, which will bring together Nigerian professionals living in South Africa. This platform will facilitate networking, knowledge exchange, and community-building among Nigerian professionals across various sectors.
Unlocking Economic Potential through Cooperation
Nigerians in South Africa are far more than the stereotypes suggest. Their contributions to business, education, and innovation are crucial to South Africa’s continued growth. By fostering cooperation rather than competition, South Africa could unlock even greater economic potential, with Nigerians playing a key role in this progress.
As President Cyril Ramaphosa recently noted, strengthening ties with Nigeria could be the key to brightening the future of South Africa’s economy, ushering in a new era of mutual prosperity. It’s clear that the bilateral partnership between the two nations must be strengthened for continued success.
