A Geopolitical Analysis of South Africa-Nigeria Trade Relations (1994-2014)

Abstract

South Africa and Nigeria are both regarded as regional 'giants' having real or perceived capacity to play strategic roles in Africa's political-economic settings. On one hand, South Africa's dominance in Africa's political-economic transformation since 1994 is reflected mostly in its business expansion in Africa. Nigeria, on the other hand, remains significant having only just been upstaged by South Africa as Africa's largest economy, and with the huge market its population provides for investors. Notwithstanding intermittent diplomatic altercations between both countries, there has been rising trade and investment relations between the two regional powers especially since the post-apartheid era. However, this is tilted in favour of South Africa because of its more capitalized economy and significant strength in trade investment in Africa. This skewed economic relationship between both regional powers has given South Africa a major trade and investment advantage over Nigeria which...