By Abdulazeez Abdullahi
The diplomatic raw between Nigeria and South Africa came to an end last week with the visit of a delegation of the South African government to President Goodluck Jonathan. Beaming with smiles, President Jonathan received a lowly Minister of Correctional Services, Ms. Nosiviwe Ngalula, who led the delegation to Aso Rock Villa. Before the visit, the South African government had apologised for the ill advised action of its officials at the Oliver Thambo International Airport who evidently had a rush of blood to the head and sent some 125 Nigerians back home for being in possession of Yellow Fever cards that were considered fake.
In a swift reaction to mainly flaunt its credential as the giant of Africa instead of actual concern for its citizens, the Nigerian government was quick to also deport some South Africans it alleged were in possession of invalid travel documents. Many Nigerians who commended the government for its surprisingly quick response however wished that the government would extend such speed in responding to the myriad problems facing them here at home. But because there are no brownie points on offer for such swift action on issues of life and death facing its citizens, Nigerians would have to continue to endure the snail speed at which the transformation train is currently running.
Sensing the far reaching consequence of its actions, the South African Deputy Foreign Minister, Eshmail Ibrahim, first apologized to Nigeria for what he described as an incident that should not have happened. Before the apology, the federal government and indeed many Nigerians, went into a nationalist over- drive mode with the Foreign Affairs Minister, Olugbenga Ashiru telling lawmakers that Nigeria would henceforth adopt a tit for tat policy against any nation that maltreats its citizens. That assertion, apparently also made after a rush of blood to the head, was soon to be tested when last week the United Kingdom deported 150 Nigerians who it said had invalid travel papers. Alarmingly, the federal government has still not clarified to Nigerians the circumstances that led to the deportation of the Nigerians from the UK and what it intends to do about it.
At his session with the lawmakers, Ashiru also declared that the Nigerian government was set to begin a review of activities of some South African companies operating in the country for allegedly violating regulations on quota system. More than anything else perhaps, this was the bit that forced the South Africans back into their senses with the rash of apologies culminating in the visit of Jacob Zuma’s special envoy.
Since the end of the apartheid era and the commencement of full economic and political relations between the two countries, South Africa, it seems, has had the upper hand in reaping the benefits of the ties between the two with many of its firms operating successfully here. Notably, the telecommunications company, MTN, has found home here where its operations, according to available records, rake in more money than anywhere else in the world. The MTN Group’s 2010 year end results released last year showed that its total revenue for the year was N2.57 trillion out of which MTN Nigeria made N749 billion. As at last year, the telecoms giant had a subscriber base of about 38.7 million which gave it a 52 per cent market share.
Protea Hotels, another South African hospitality company has also found Nigeria to be a business haven. Starting with just one hotel back in 2001, the company now has over 15 spread across the country. With the banking sector reforms which paved way for foreign ownership of Nigerian banks, the foray of one of South Africa’s biggest banks, Stanbic bank, into Nigeria has also proved to be profitable. The bank bought controlling shares in IBTC and last year declared a profit of N13.5 billion in its financial results for the year ended December 2010 against N10.3 billion in 2009.
In the same vein, the satellite television company, Multichoice, with its Digital Satellite Television {DStv} arm has continued to be successful here with its unshaken monopoly of the satellite television industry. An attempt to break that firm grip failed last year when the English Premier League, the company that owns the rights to Premiership matches, rewarded the rights to Multichoice’s subsidiary, SuperSport, after the apparent failure of HiTV to renew its payment for the rights. The super store chain, Shoprite, which began business in Nigeria back in 2005, has been expanding its presence in the country with the opening of more stores across the country.
In addition to these major firms, there are many other profitable South African businesses in the country. In contrast however, Nigeria has little to boast of in terms of its foray into the South African market. Though we export goods to that country but no Nigerian company has made the sort of impact that their South African counterparts have had here. Our banks such as UBA, Union Bank and First Bank that got licenses to operate in South Africa have still not made the desired impact. Not even our flagship Dangote Group has penetrated the South African market despite its dominance here. To drive home the near total dominance of the South African economy in the continent, 16 of its companies made the list of Top 30 African companies last year without a single one from Nigeria making the list.
So, if South Africa offers an apology to Nigeria over the deportation raw, it was not necessarily because it was afraid of a so called big brother whose wrath it fears but because it has an economic interest to protect. We can go on basking in the euphoria of having forced an apology out of South Africa but at the end of it all, it continues to rake billions of Nigeria out of here and leaves us with our “giant of Africa” toga whose worth is only on paper. The bottomline is: South Africa has more to gain from the apology than Nigeria does. To buttress the fact that the apology was only a worthless symbolic gesture that was why the South African government sent a Correctional Services minister – not a vice president or even a foreign affairs minister – to deliver the letter to our own president and instead of delegating the foreign affairs minister or his minister of state to receive the delegation, President Jonathan again allowed them to score one over us.