SANIGERIA Chamber of Commerce

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SA-NIGERIA Chamber of Commerce
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Introduction

• Launched in May 2005
• Members-Standard Bank, KPMG, MTN, Johnnic,
  Phillips Consulting, Nampak, Alexander Forbes,
  Union Bank Nigeria, First Bank Nigeria, Plessey,
  Legacy Hotels
• Top three Trading Partners in Africa
• Difficult Business Destination
• Business Culture
• Unpredictable
• Corruption? Perception issues
• Logistics
• African Bi Lateral Loyalty

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General Facts

• Nigeria permits 100 foreign ownership in every
  industry except for petroleum and national
  security
• There are no controls on profit repatriation
• Taxation
• Corporate Rates 35
• Petroleum profits tax 50 - 85 (crude sales)
• Petroleum royalties onshore 20 offshore 0 -
  19
• Individuals progressively up to 25, Capital
  gains tax10, Value added tax 5

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General Facts

• FDI into Nigeria- USD35bn
• China-USD10bn
• Drive for more non-oil and gas investment

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Value Proposition

• Access Nigerian Market
• Source of Information and Research
• Official Network
• High Commissions
• DTI
• Networking
• Bi-Lateral
• Nigeria-South Africa Chamber-Lagos

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Value Proposition

• Business Opportunities
• Potential Partners-Nigeria
• Market Research or Access to
• SA and Nigeria
• Risk Management
• Regulatory Advice
• Representation by Chamber
• Encouragement of Big Business in Nigeria to
  Invest in South Africa-not only a one way
  investment

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Value Proposition

• Sector Specific Workshops
• Meeting Government Officials
• Nigeria and SA
• State Governors-Nigeria
• At this stage members only

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Reason to Do Business

• Large Population
• Affluence in Top End- Most Significant in Africa
• Well Educated Work Force
• Improving Bureaucratic and Regulatory Environment
• Need to fully understand and adhere to
• Lack of Infrastructure Technical Expertise
• Import Ban
• Reasonably Stable Exchange Rate
• Accelerated Privatisation-Intention!

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Companies Privatised

• African Petroleum
• National Oil and Chemical Marketing Co
• Benue Cement
• Unipetrol
• FSB Intl Bank
• Ashaka Cement
• Sokoto Cement
• Cement Co of Northern Nigeria

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To Be Privatised

• Nitel
• Nepa
• Nigerian Paper Mill Ltd
• Ajaokuta Steel Co
• Nigerian National Paper Manufacturing Co
• National Fertilizer Company
• Nigerian Reinsurance Co
• Katsina Steel Rolling Mills Ltd
• Jos Steel Rolling Mills Ltd
• Calabar Cement

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Political Will

• SA and Nigerian Governments
• Bi Lateral Commission-1999
• Two Trade missions by DTI-99-02
• NEPAD
• Political Will-Strong since 1999
• Current Status in Nigeria
• Government is creating Gov of National Unity
• Largest Opposition Party- nominating ministers
• Increase In Transparency
• Smooth Transition- notwithstanding election
  issues

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Trade/Business Presence

• Since 1999
• Exports up to R3.5bn
• Imports up to R8bn (larger increase after 2003
  due to inc in Crude Imports)
• Nigeria 60 SA West Africa Trade
• 100 SA business with offices in Nigeria
• Number of SA Corps doing business- far larger
  (Std Bank)

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Nigeria Sector Overview
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Business Issues

• Although politically the preferred partner
• Sense of Competitiveness between SA and Nigerian
  corporates
• SA into Nigeria- not always favourable reception
• Trade in Nigeria Favour-import into SA dominated
  by Oil
• Nigerian complaints investing in and doing
  business in SA!!
• Situation Improving as more relationships are
  formed
• Strong Tendency of SA Companies to work off an
  existing model
• Flexibility is needed
• Short term perceived high cost- part of a solid
  future investment

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Business Issues

• SA business too slow to take decisions and
  arrogant
• Nigerians far to Impetuous and appear to want
  short term gain
• Political Connections
• Increasing reliance on business and not political
  connections
• Corruption
• Major Focus on ridding the country of this label

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Latest Developments

• Telkom purchases stake in MultiLinks
• 75 in a private telecom company-USD280m
• Standardbank now own 51 of IBTC Chartered bank-
  top 10 Bank!- USD480m
• Top International Fund Managers predict that by
  2020 Nigeria will be in top 20 Economies in the
  World.
• After the BRIC countries
• 2050- Top 12 , bigger than Italy and Canada
• Incorporate Ghana Business into the Chamber

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Contact Details

• Dianna Games
• Phone [phone]
• Fax [phone]
• E-mail info_at_sa-ncc.co.za
• Henry Hollingdrake
• Phone [phone]
• Fax [phone]
• E-Mail info_at_sa-ncc.co.za
• Francis Osuyah
• Phone [phone]
• E-Mail info_at_sa-ncc.co.za