Africa’s two largest economies sat down in Lagos on Monday to confront one of the continent’s most stubborn problems: Africans trade far more with the rest of the world than with each other.
The second Nigeria-South Africa Economic Diplomacy Roundtable, hosted by MTN Nigeria as part of the 2026 South Africa Focus Week, brought together government officials and private-sector leaders to map out how the two countries can accelerate implementation of the African Continental Free Trade Area.
Why it matters
Intra-African trade accounts for less than 15 percent of the continent’s total commerce, compared with roughly 60 percent for intra-European trade and 50 percent for intra-Asian trade. Nigeria and South Africa together produce more than a third of sub-Saharan Africa’s GDP, meaning their bilateral economic relationship sets the pace for the entire continent.
What was discussed
Delegates identified five priority sectors with the strongest potential to drive cross-border jobs and investment: manufacturing, agro-processing, pharmaceuticals, digital trade, and infrastructure.
South African firms already operate extensively in Nigeria. MTN, which hosted the event, is one of the largest telecoms operators in both countries. Shoprite, Standard Bank, and Sasol also maintain significant Nigerian operations. But officials acknowledged that trade between the two countries remains well below its potential, hampered by tariff barriers, inconsistent customs procedures, and a lack of direct shipping routes.
Nigerian officials stressed the need to move beyond raw-commodity exports. According to data presented at the roundtable, more than 80 percent of Nigeria’s exports to South Africa are petroleum products, while South African exports to Nigeria are more diversified across manufactured goods and services.
AfCFTA progress
The African Continental Free Trade Area, which aims to create a single market of 1.4 billion people, has moved from policy design to early implementation. The recent approval of automotive rules of origin was cited as a concrete step forward. But delegates warned that without deliberate policy coordination between Africa’s anchor economies, the agreement risks remaining aspirational.
What happens next
Both governments committed to establishing a joint trade facilitation task force to identify and remove specific bottlenecks in bilateral commerce. The next roundtable is scheduled for Johannesburg later this year, coinciding with the South African International Trade Fair.