CAPE TOWN (AFP) South African President Thabo Mbeki apologised to his Nigerian counterpart Umaru Yar'Adua on Tuesday for recent anti-immigrant attacks that strained ties between the regional giants.

The two leaders met for bilateral talks to strengthen economic and political ties as Yar'Adua began a three-day state visit, his first to another African country since taking office a year ago following disputed elections.

South Africa's anti-immigrant violence -- which saw over 60 people killed and tens of thousands displaced -- featured highly on the two leaders' agenda. Although no Nigerians were among those killed, many lost property or had their shops looted.

"We extend an apology to the president with regard to these attacks that have taken place in some parts of our country, attacks against other Africans particularly," Mbeki said.

After meeting Yar'Adua, Mbeki said he assured him that his government was "opposed to any manifestation of any xenophobia amongst our people.

"We are quite determined to make sure we protect the security of everybody but (are) also very, very keen that the process of the reintegration of displaced people within communities from which they came is done as quickly as possible," he told reporters.

Nigeria had indicated it would seek compensation for its citizens who were affected in the attacks, although the South African foreign ministry has said it has not received any such request.

Yar'Adua has said dialogue, and not retaliation, is the way to resolve the anti-foreigner sentiment.

The Nigerian president praised Mbeki's handling of the situation, offering his sympathies to the country.

"Nigeria expresses also our deep concerns not only to the victims but also to the government and people of South Africa because we have experienced these issues over the past and we know that hardly are these kind of issues spontaneous," said Yar'Adua.

He said Mbeki had made a determined effort to "put a stop to the situation," lauding his decision to deploy the army to the streets to bring the violence under control.

Yar-Adua was accorded a 21-gun salute before entering Mbeki's Cape Town residence for the talks.

Economic and trade ties between the two countries, the largest economies in their respective regions, were also addressed.

"Nigeria has the largest number of bilateral agreements with South Africa, more than any other country," said Mbeki, adding that economic development between the two countries was a prime goal.

He also said it was important to promote greater investment by Nigerian companies in South Africa, which already has many businesses operating in the West African country.

Yar'Adua called his visit a "watershed" for relations between the two nations, saying they could together promote African development.

"We are aware of our moral responsibility to the entire continent," he said, adding that the two countries would do "all we can to live up to the expectations."

Following his talks with Mbeki, the Nigerian head of state was to address a session of the South African parliament.

He is also scheduled on Wednesday to participate in a Nigeria business forum, and to address the World Economic Forum on Africa being held in Cape Town this week