Deepening relations

A new bilateral South Africa-Nigeria commission is to meet later this month to cement the deepening business links between Africa's two superpowers.

The Bi-National Commission (BNC), established in October last year, is an attempt to explore the strategic relationship that has been established between the two countries since the end of military rule in Nigeria. This month's BNC meeting is expected to carry forward negotiations over a bilateral investment treaty.

"We are looking at the long term, that's why we are talking about areas of investment rather than trade. Trade can take care of itself, you don't need such a structured relationship," Mudunwuazi Baloyi, Deputy Director of Africa relations in the Ministry of Trade and Industry told IRIN. "Of
interest to us is to zero in on the areas of investment like infrastructure, ports, railways, telecommunications and power."

There has been a great deal of interest in Nigeria over both South African expertise and capital. However, administrative problems have delayed some projects. "I guess South Africa is organised in such a manner as to be able to move at a faster pace than our counterparts," Baloyi said.

But major infrastructural projects are in the pipeline. The state-owned oil company Sasol, in partnership with the US firm Chevron, is planning to build a US $500 million gas-to-diesel plant in the Nigerian oil-producing delta. "We are in the final feasibility stage," a Sasol spokesman told IRIN. "It's a very important step forward for us. It forms part of Sasol's vision to
play an important role in the development of the continent."

The power utility Escom is also eyeing the Nigerian market, and the revamping of Nigeria's crippled electricity company, NEPA. "We are looking at the rehabilitation of the whole NEPA system, from generation to distribution," an Escom official said. "The approach has been made, but the decision depends very much on Nigeria."

Meanwhile, the South African cellular telephone company MTN is reportedly considering spending more than US $300 million on infrastructural development over two years in Nigeria should it win one of the country's four GSM licenses.