India confident MPS will jumpstart trade
INDIA believes that trade and investment cooperation with Zimbabwe will grow to a higher level on the back of positive measures introduced by the Reserve Bank of Zimbabwe through the monetary policy.
Indian ambassador to Zimbabwe Rungsung Masakui said this in an interview after officially handing over several tonnes of food items donated by the Indian business community to victims of Cyclone Idai.
Local Government, Public Works and National Housing Minister July Moyo and his deputy Jennifer Mhlanga received the goods under a second round of donations to Cyclone victims by the Indian business community, led by cooking oil producer Cangrow Trading and Holbud Zimbabwe.
The Indian diplomat said trade and investment between Dehli and Harare, which has not grown much in recent years, would deepen on the back of a cocktail of currency reform measures introduced through the MPS.
Government Dr Mangudya presented RBZ the 2019 on February 2019, which entailed MPS a number of monetary reforms that included setting up a US$1 billion foreign investment guarantee facility, floating the exchange rate and creation of an interbank forex market.
Ambassador Masakui said before the new dispensation came into power and embarked on a raft of reforms to improve the economic environment, it was difficult for foreign investors to do business in this country.
“Trade and economic cooperation is deepening and I think it is not us alone, but even other countries (whose trade and economic cooperation with Zimbabwe) is predicated on the business environment of the country.
“Let us not deny that doing business (in Zimbabwe) has been difficult because of the forex issue; now because of the latest monetary policy, hopefully it will be sorted out in the next few months, and everyone is waiting for that,”he said.
The top Indian diplomat said trade cooperation between India and Zimbabwe had remained constant over the last few years due to the fact that it was difficult for Indian exporters to repatriate proceeds back home.
He said this situation created problems for Indian exporters in terms of accounting for export proceeds to exchange control and customs authorities back in India
India is the world’s 5th largest economy after the US, China, Japana, Germany and UK. It exports mainly medical drugs and equipment to Zimbabwe while Zimbabwe exports mainly precious metals such as gold.
Ambassador Masakui said a number of Indian investors had come to set up operations in Zimbabwe despite the challenging environment and one of them was Varum Beverages, which has sunk in US$50 million.
He said the company was planning to increase its investment in the country to US$150 million on the back of growing demand for its products, which include the Pepsi brands. The firm intends to expand into other products.
Indian firms have made investments mainly in the food and beverages, pharmaceuticals and agro-processing industries. There are over 25 major companies owned by Indians or Zimbabweans of Indian origin in Zimbabwe.
Ambassador Masakui said he had witnessed a number of new investments into Zimbabwe from India ever since he took charge of the Harare consular office, which is evidence for growth in trade and investment.
Zimbabwe and India have also seen growth in development cooperation between the two countries, which saw the commissioning of a technology incubation centre in Waterfalls, which was funded by India.
India has also set up an Indo-Zim technology centre at the Harare Institute of Technology, which the Indian ambassador said would be
upgraded. In fact, 18 technology centres across the country will be upgraded for US$3,2 million.
Ambassador Masakui also said that the Indian Government will finance the construction of a convention centre in Zimbabwe and is only awaiting allocation of ground and approval of designs for the facility.