Despite unease over xenophobic attacks on non-natives in South Africa, the Nigerian-South African Chamber of Commerce strives to crystalise the more beneficial aspect of Nigeria-South Africa relations, writes Correspondent, SAM NWOKORO.
Those schooled in the art of dissecting the whys and wherefores of human society agree that there is a term sociologists call xenophobia. Wikipedia defines it as “the unreasoned fear of that which is perceived to be foreign or strange. It manifests itself in many ways involving the in-group and the out-group, including a fear of losing identity, suspicion of its activities, aggression and the desire to eliminate presence to secure purity.”
The modern world is against xenophobia. This seem to be the general conclusion of scholars and international relations stakeholders. Why? Quite unlike in the recent past when most economies were state-controlled, the world today has become a global village through information and communication technology (ICT). The strength of national economies are no longer measured only by the traditional indices: per capita income, Gross domestic Product (GDP), foreign reserves and unemployment figures. The band has come to include, more fundamentally: number of remittances back home and the number of gainfully employed nationals in other countries. The more the number of gainfully employed migrant workers, the heftier the size of remittances to the local economy, and the more the possibility of emigrants acquiring better occupational exposures, even becoming experts in certain sectors they would not venture into at home. There are, of course, values to be derived from transnationalism which has been described as the backbone of United Nations efforts to seriously reduce poverty in the world to the barest minimum, if not totally eradicate by latest 2050.
The push by emerging economies to attract many foreign direct investments (FDIs) and valuable transnational corporate partnerships at private levels has unwittingly led to an implosion of immigration. The concept of sovereign jurisdiction appears to be fast disappearing, perhaps remaining only in the judiciary aspect.
Business interactions and deals are made through the chambers of commerce and business associations where the problems of differences in race, language and culture are insulated from partnership memoranda of association or deals, as companies court one another across national borders for the purpose of synergising for profit, growth, business expansions and other values.
These and more have been the main reason the Nigerian-South African Chamber of Commerce (NSACC) has never relented since its formation in May 2001.
Forum
To demonstrate its concern over their business interests, members of NSACC last week held a get-together in which they discussed issues of common concern in their business relationships: doing business in Nigeria, and Nigerians doing business in South Africa. But the gathering’s star rapporteur whose opening remarks enthralled the audience is its very articulate president, Foluso Philips, scion of the foremost business solution provider, Philips Consulting.
Addressing members inside the Orchid Hall of Eko Hotels and Suites last week, Philips stressed the need for Nigerians doing business in South Africa and South Africans in Nigeria to always try to avail themselves of the prevailing practice regulations in their various countries of domicile, to be able to tap into incentives and other relevant information in the various sectors they operate because, according to him, “this will help you grow your business”. He also lectured the newly-registered members not be scared by the stories of xenophobic attacks, reminding them that such occurrence “is not peculiar to South Africa” and that the situation was not beyond control. He stressed the need for the economic managers of Nigeria and South Africa to always bear in mind the status of the two countries’ economies as the two regional powers in the continent and as such policies must always strive to be business-friendly since the two economies hold the last hope for poverty eradication in the continent.
NSACC members at the recent breakfast meeting discussed the theme, ‘Africa’s Competitiveness: Nigeria-South Africa Cooperation or Competition’. Obviously timed in response to the spate of xenophobic attacks, top NSACC executives and diplomats fielded questions from the members and new entrants into the club.
The forum resolved thus: “Africa’s largest economies, Nigeria and South Africa, have determined to do more in the areas of co-operation and collaboration, so as to give momentum to the much-needed transformation and growth of the fast-growing continent”. The forum had as lead discussants Deputy Minister for Trade and Industry in South Africa, Mwandile Masina; CEO of Brand South Africa, Miller Matola; Nigerian High Commissioner to South Africa, Ambassador Samuel Yusuf; Consul-General, South African High Commission, Ambassador Mokgheti Monaisa; and Corporative Services Executive of MTN, Akinwale Goodluck. Others included: DG, Centre for Black African Arts and Civilisation (CBAAC), Professor Tunde Babawale; and DG, Nigerian Competitiveness Council, Chika Mordi.
Other concerns:
In his contribution, Masina agreed that Nigeria and South Africa are strategic trade partners who need to do more in terms of the level of their engagement, although, according to him, “some broad host of other impediments, both diplomatic and operational, hinder more fluid bilateral engagement between Africa’s two largest economies”.
In similar gathering last year, the Chamber had noted through the South African deputy trade minister that: “Nigeria accounts for 40 per cent of SA exports in 2012. He also said “trade volume between Nigeria and South Africa has swelled over the course of the decade. In 2001, total bi-lateral trade amounted to just $3.2 billion. Last year, trade reached $36.6 billion, implying 12-fold leap within a decade”.
He also observed that “a consideration of Nigeria’s import profiles suggests that there remains substantial room for growth in South Africa’s exports to the market. The product composition of Nigeria’s principal imports and South Africa’s non-commodity exports present clear areas of synergy. In 2011, electrical equipment, machinery and vehicles made up half of Nigeria’s total imports from the world.” He sued for trade barrier dismantling. During same 2014 roundtable, South Africa-related companies in Nigeria reached 100, it was disclosed.
Other affirmations of Nigeria-South Africa co-operation came from Ambassador Monaisa, who disclosed that “a lot of businesses are happening between the two countries, people to people, nation to nation”, said “based on the significant number of companies that are doing business in Nigeria, it shows we are really here for serious business. This further showed that there is mutual understanding between the two countries.”
Appraising Nigeria-South Africa relations, Matola said the brand project pursues its African programme with an emphasis on promoting the South African brand as part of the continent’s brand, Brand Africa, therefore Africa’s reputation and competitiveness is central to that agenda. He challenged the organised African business and corporate brands to invest in changing the perception of Africa from negativity to positivity.
For South African’s Deputy President, Kgalema Motlante, Nigeria and South Africa need a heart-to-heart talk inspired by the spirit of brotherhood and sisterhood as Africans with a shared destiny, “so that we surface home truth as a prerequisite to clearing up any irritant that may be currently serving as a wedge between us”.
Clearing up irritants
In what sounded like an apology and an assurance regarding the recent xenophobic attacks on some nationals in South Africa, Monaisa asked Chamber members not to allow the incident to stunt their enthusiasm in doing business in South Africa.
His words: “South Africa runs a constitutional democracy and is tolerant to outsiders. She has maintained an open liberal economic system and those who are xenophobes are being rooted out. South Africa is a multi-ethnic society. Nigerians and South Africans have lived in harmony for a long time, and nothing justifies the killing of people. Government is doing everything within its power to ensure the safety of foreigners.”
Monaisa also disclosed that, to date, not less than 310 South Africans have been arrested by a special xenophobe tribunal set up by the South African government, adding that the process of engagement of those displaced has begun and that “government has traditional law enforcement officers who have already been mobilised and they are making progress in stopping the xenophobic attacks and arresting offenders”. South Africa offers one of the most business-friendly environment in the continent, he added.
Another aspect both countries are taking in minimising and stopping xenophobic disturbances as gathered during the week was a steeped up negotiation between Nigerian and South African authorities.
Chamber of Commerce as diplomatic tool
At a period transnationalism has become the most preferred route to corporate growth (the benefits of synergy), the NSACC has been one of the most prominent and influential business and corporate fora. This owes partly to the fact that the promoters of the forum saw well ahead that South Africa would soon become one of Nigeria’s strongest and complementary ally in expanding business and opportunity space in Africa. The growth has been phenomenal considering its young age. Inaugurated on May 2001, the chamber currently boasts more than a 100 active quality enterprises and role models in the private sector. South African nationals in Nigeria who are investing have interests in telecommunications, broadcasting, petroleum, banking, hospitality and other high networth sectors where only the prudent and serious play, such as the tricky financial services sectors. It has, since the past decade, become fashionable for any company that has garnered sizeable capital and wants some African presence in its shareholding roll to look towards the Johannesburg stock exchange, one of the top 15 ranking in the world on account of the equally vibrant economy of the country and other enviable economic fundamentals.
In the same vein, top companies and service firms in the rainbow country have since the departure of apartheid keyed into Nigeria’s evolving economic powerhouse, largely because of the relative peace and stability that prevail in the country since the return to democratic rule in Nigeria in 1999. South Africa’s presence is felt in some Nigeria’s lucrative sectors such as telecoms, broadcasting, oil and gas, aviation and banking. Madiba’s kinsmen repatriate billions of dollars annually from their investments in Nigeria.
As at January 2014, the NSACC spotted close to 315 active membership, and yearly the number keeps increasing. Its membership comprises fully Nigeria-owned firms and those with ownership by both Nigerian and South African investors. The Chamber represents members’ interest at all relevant government authorities, provides access to library and information data bank, extends invitations to members for regular monthly business meetings, organises receptions for business visitors from South Africa and Nigeria, thereby creating room for interaction and networking. It also organises trade missions to South Africa.
Other services the secretariat extends to members include organising seminars and conferences on key issues affecting trade activities, publication of a monthly newsletter on membership information, business trade and regulatory issues, keeping members informed on South Africa and Nigeria and helps members access visa stress-free. The Chamber also promotes member-to-member trade discounts.
Phillips, the quality leader
By his career, consulting, it is no doubt that the helmsman at NSACC has been able to deliver on managing the emotions and sentiments of such men of timber and calibre constituting the NSACC. Little doubt, the prominence of the body in the nation’s community of chambers of commerce, in the corporate community and in the very valuable job of mentoring up-and-coming entrepreneurs.
Philips, though advanced in age, still exudes that vibrancy of a new grad. Intellectually engaging and trendy with latest facts in the world of development, management and international economic dynamics, the super selector of human resource stimulates whenever he speaks on Nigeria’s economics, on policy issues and the need for the country to nurture enduring bi-lateral relationship with the Republic of South Africa, given the countries’ shared values and development aspirations for the growth of Africa. His presence of mind is enchanting.
A seasoned chartered accountant trained in the UK, and an alumnus of University of Wales Institute of Science and Technology, Philips has traversed the corporate world of UK and other parts of Africa as a known financial manager and development consultant with PricewaterhouseCoopers (pwc). He has also been with the SCOA group, a division of imperial UAC (1990-92).
He set up Philips Consulting through which he provides his ideas to several other corporate organisations, NGOs, and charities, including the Nigeria Economic Summit Group (NESG). He is also a member of the African Business Roundtable (ABR), a pan-African body that articulates way forward for African growth. He is an adviser to the African Leadership Academy and member of Institute of Directors in South Africa.