South Africa’s Trade and Industry Minister Dr Rob Davies says news of Nigeria’s ascendency to the position of Africa’s largest economy should not be surprising, owing to the fact that the West African country had a population that was more than three times that of South Africa’s.

He indicated that South Africans should welcome news of Nigeria’s growth and development as confirmed by a rebasing of its gross domestic product (GDP) to $509.9-billion. South Africa’s nominal GDP stood at around $322-billion.

“Why should we be concerned? This is not the Absa Currie Cup and certainly not the second division where we want Nigeria to be poor so we can be higher than them in the league table.”

Speaking at the launch of the latest Industrial Policy Action Plan (Ipap) in Johannesburg, Davies added that “if Nigeria grows, develops and industrialises that provides opportunities for us.”

A conversation was already under way about the possibility of supplying semi-knocked down automotive kits to Nigerian companies keen on developing a domestic automotive industry.

“That’s part of the way forward. As Africa industrialises and grows and develops, so the opportunities for us are going to be greater.”

The remarks were backed by the new Ipap document itself, which emphasised the need for South Africa to grow exports and expand value chains into the rest of the continent, as a part of raising manufacturing competitiveness.

Davies also emphasised that South Africa had always positioned itself as a “gateway” to the rest of Africa rather than a “gatekeeper” and had encouraged investors, including South African companies, to pursue opportunities opening up across the continent.

“The fact of the matter, though, is that South Africa does offer a range of facilities that are attractive in their own right . . . [things which] attract quite a large number of companies that are considering entering the African continent.”

The Minister was also sanguine about prospects for investment into South Africa, notwithstanding ongoing concern about the investment climate and the labour climate.

Some European countries had been particularly concerned about South Africa’s decision to terminate bilateral investment treaties in favour of investment protection legislation, which would come before Parliament when it is reconstituted after the May 7 elections.

“The move away form bilateral investment treaties towards the Investment Bill has got nothing to do with any intention to go on a massive expropriation [drive] and in any case the Constitution prohibits any kind of expropriation without compensation.”

He highlighted the fact that the property rights clause in the Constitution was in the same category as the restoration of the death penalty. “In practical terms neither of those is on the cards – you need a special majority and the say so of the Constitutional Court. It’s not going to happen.”