South Africa commends Nigeria for improved GDP

South Africa says it hopes to continue to nurture mutually beneficial trade and investment ties with Nigeria.
After being upstaged from being the biggest economy in Africa, South Africa has said it welcomes the re-basing of Nigeria’s gross domestic product, GDP, as a positive development indicative of the rising economic profile of the continent.
South Africa also said its companies helped Nigeria to achieve the re-based GDP, citing the existence of its companies, MTN and Shoprite, amongst others, as part of the service sector that led to the improved GDP.
After re-basing the country’s GDP, Nigeria moved above South Africa to become the largest economy in Africa and the 26th largest economy in the world.
Nigeria’s Minister of Finance, Ngozi Okonjo-Iweala, said the re-based estimates had put Nigeria’s nominal GDP at about N80.2 trillion (about $509.9 billion), compared to South Africa’s figure of $384,312.67 and the latter’s global ranking of 28th.
In a statement, South Africa’s Ministry of Finance said it welcomes the announcement by Nigeria, Africa’s most populous nation.
South Africa said the announcement is a concrete expression to the fact that Africa was indeed rising. The country’s Ministry of Finance said the announcement aligns with its consistent message since 1994 that more African economies need to grow and live up to their potential.
While assuring that South Africa would continue to strive to develop the potentials of her economy, the Ministry said the country’s economy would also continue to benefit from the faster economic growth in the rest of the continent.
The ministry acknowledged the role that the South African government and the country’s private sector have been playing in the growth and development of the continent.
In Nigeria, the Ministry said, South Africa has made huge contributions to the wholesale and retail as well as the telecommunications sectors, the two largest components of the services sector.
“This is a positive story of African countries contributing to reshaping each other’s economies through increased investment. South Africa will continue to nurture mutually beneficial trade and
investment ties with Nigeria and other African countries,” the ministry said.
In the communications sector, MTN Nigeria, which arrived the country in 2001, following its acquisition of one of the mobile telecommunications network operational licenses from the Federal Government, has continued to expand its base to one of the leading players in the industry.
Multi-Choice Nigeria has remained the dominant player in the cable network television industry in Nigeria through the services of its Pay-Television and internet subscriber platforms, DSTV, MNet and MWEB.
In the wholesale and retail business sector, a horde of investors, including Shoprite supermarket, Game Stores, PEP and Massmart, have arrived to open outlets in a number major cities across the country.
Shoprite chain of supermarkets alone has already given an indication that it plans to open no fewer than 300 outlets across the country in the next five years.