Nigeria’s Finance Minister, Wale Edun, has urged South African corporates and fund managers to deepen their commitments to Africa’s most populous economy, saying sweeping reforms under President Bola Tinubu are beginning to stabilise markets, improve investor sentiment and lay the groundwork for stronger growth.
Speaking on the sidelines of the G20 Investment Breakfast Dialogue in Johannesburg, Edun told executives from MTN Group, development partners and officials from both countries that Africa must accelerate economic reforms to withstand a rapidly shifting global landscape.
He noted that developing regions are grappling with weakening capital flows, higher interest rates and rising debt burdens.
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Africa is expected to spend about $163 billion on debt service in 2024—significantly more than the less than $100 billion it attracts in foreign direct investment—according to African Development Bank estimates.
The squeeze, he said, leaves governments with fewer resources for development at a time when technology is reshaping labour markets and the effects of climate change are intensifying.
“These shifts mean one thing: we must accelerate bold economic reforms and strengthen domestic resource mobilisation,” Edun said.
He argued that Nigeria is demonstrating what this looks like in practice. Since May 2023, the government has removed fuel subsidies, liberalised the foreign-exchange market, implemented tax reforms and introduced structural adjustments across power, energy, logistics and industrial production. The goal, he said, is to build a competitive, private-sector-led economy supported by a stable macroeconomic environment.
According to him, early indicators suggest the reforms are gaining traction. GDP grew by 4.23 percent in the second quarter of 2025, up from 3.1 percent a year earlier, marking the fastest expansion in at least four years.
Inflation has slowed for seven consecutive months to 16.05 percent in October, while foreign reserves have risen to $46.3 billion. Growth is becoming more broad-based—driven by telecoms, trade, construction, rail expansion, improvements in electricity supply and increased refining capacity.
“These indicators carry a simple message: Nigeria is more stable, more predictable and more investable than it has been in many years,” he said.
To cushion the pressures of reform, the government has expanded direct cash transfers to 15 million households, with 9 million already receiving support.
Edun emphasised that Nigeria–South Africa economic cooperation must anchor Africa’s broader growth ambitions. MTN Group CEO Ralph Mupita described Nigeria as a “true African success story,” while Nigerian Investment Promotion Commission chief Aisha Rimi said the reform drive is resetting the foundation for new investment flows.
Edun added that Nigeria has “laid the foundation for a modern, resilient economy,” targeting medium-term growth of at least 7 percent driven by private investment.
