SA businesses eye huge Zim capital investments
SOUTH African businesses have identified huge capital investments in the country’s mining sector as trade relations between Zimbabwe and South Africa continue to strengthen.
A delegation of 40 businesspeople who visited the country last week to engage locals especially from the mining town of Gwanda said as counterparts from the two countries, bilateral agreements have been made as they are eager to invest in Zimbabwe.
In an interview, South Africa-Zimbabwe Business Connection chairman Mr George Moyo said the delegation that is visiting the country has expressed interest in the country’s mining and manufacturing sectors as they look to extend their South African operations.
Mr Moyo said South Africa projected that Zimbabwe will regain its economic stability hence being the ideal investment destination in the region as the country has infrastructure.
“We met and interacted with a delegation of businesspeople from Gwanda led by their Mayor, Councillor Ndlovu and agreements are being made on what to invest in. Those in the mining sector in South Africa are looking to extend their interests to Zimbabwe in the total value chain including beneficiation of the minerals.
“Others are mostly interested in leather manufacturing and all these are huge capital investments,” said Mr Moyo.
He said in spite of Zimbabwe’s publicised economic instability they believed that the country was already at a difficult state and cannot go further down but is instead poised for growth with proper Government interventions.
He said Zimbabwe’s economic woes were actually better compared to other African countries where South Africans invest in as the country was not a war zone.
“It is true that people fear the risks, both political and economical that are high in Zimbabwe but SA black businesspeople are also finding their feet and do not have much economic freedom. The Zimbabwean diasporans in SA will lead the engagements connecting the two countries and strengthening existing trade relations,” said Mr Moyo.
Gwanda Mayor Councillor Knowledge Ndlovu said the town has put forward its policy position while their South African counterparts gave them their scope, adding that the interactions were positive and promising.
Clr Ndlovu said the prospective investors showed interest in agriculture, mining and manufacturing and were looking at making large investments in all areas that will spur the growth of the town.
“We are looking forward to nurturing our relationship with South Africa and will not let such an opportunity pass us by. We will be forming business associations as the businesspeople from Gwanda that will position us well,” said Clr Ndlovu.
He said a business forum for all businesspeople in the town will be held soon so as to involve everyone.
Meanwhile, the South African delegation urged the two countries’ governments to find a solution as they believed that Zimbabwe’s recently enacted Statutory Instrument 64 of 2016 on import restrictions would affect the trade relationship that exists between the two countries.
The businesspeople said they do not support the restrictions as Zimbabwe and South Africa were one and only separated by borders.
“If these restrictions continue, all our efforts will be futile. It will affect the Zimbabwean economy and trading relationship that exists. We will be coming to Zimbabwe to meet the authorities as an association to discuss ease of doing business issues,” said Mr Moyo.
Addressing a Press Conference in Bulawayo recently, SA Ambassador to Zimbabwe Mphakama Mbete said there was a need to intensify efforts towards building strong economic and trade relations between the two countries.
“South Africa and Zimbabwe must be strong and continue to intensify co-operation and working together in the trade and investment areas to build our economies,” said Ambassador Mbete.