Govt, private firms to tour Russia
GOVERNMENT will this week lead a delegation of private sector companies to Moscow, Russia, seeking to pursue business and investment deals over the five day visit to the country.
The Ministry of Macroeconomic Planning and Investment Promotion will lead the team of private sector firms on the visit to Moscow, as part of first steps to lure more Russian investors.
Companies forming the private sector delegation to Moscow were drawn from agriculture, mining, manufacturing and education, among other key economic sectors.
Zimbabwe and Russia already enjoy cordial political relations and have been working to extend this close cooperation to the economic front, which saw them signing a Bilateral Investment Protection and Promotion Agreement. The two countries signed the BIPPA agreement in 2012.
Russia has since responded by investing in a major project, the $3 billion Darwendale platinum mine, which is set to become the biggest platinum group metals mine in Zimbabwe, even well before its phased development is completed.
The joint venture is between State owned Zimbabwe Mining Development Corporation and a consortium made up of three Russian firms, Vnesheconombank, VI Holdings and Rostec.
This forms part of the success of Government’s look east policy.
Secretary for Macroeconomic Planning and Investment Promotion, Dr Desire Sibanda, said it is important to visit Russia to profile the country and abundant opportunities it has.
“In terms of our policy, we are focusing on the look east policy covering China, Russia and others and the idea is to attract investment into Special Economic Zones and for the investors to bring infrastructure and manufacture modern commodities,” Dr Sibanda said while briefing delegation members.
Senior Government officials, including the permanent secretary, will present on macroeconomic situation and opportunities in all sectors of the economy while the private sector companies would seek to market their projects.
Dr Sibanda said Singapore has developed to its present status because it engaged in extensive marketing of itself and sends over 300 delegations to other country for this purpose.
He said that while the country is battling to exit the strong grip of a tough economic environment, it is not all gloom and doom, as it has natural and human resources which were not comparable.
“This is going to be a litmus test on how you are ready to market yourselves. Investment delegations are important, some people do not know your country, your resources or your manpower, and it is when you take a step to advertise yourself that they start thinking about investing in Zimbabwe.
“Investment is also important because the growth of the economy depends mainly to the extent of how you attract investment.
“If you look at Mozambique they are talking about $6 billion or so in foreign investment, South Africa about $4 billion, Botswana around $2 billion and we are only at $600 million.
“So that is why the economy is growing at less than 1,4 percent, we need to attract investment for the economy to grow.
“All countries that have grown have attracted much investment. So we are going there to market your projects, to invite investors, to create relations and at the end of the day, aggregate wise, to develop the economy,” Dr Sibanda said.
While Russia has already started investing in Zimbabwe, as shown by its investment in the Darwendale project, Dr Sibanda said that there is need for more investment by Russians.
He said the private sector companies going to Russia need to be clear on what they need from Russian investors and take advantage of the bilateral agreement between the two.
“You need to be very clear about what you want from them, well costed projects with names and addresses and contacts and then present your projects. At the same time, emphasise the important features of your project,” he added.
He also noted that such investment may not bring immediate benefits, neither in the medium term, but it remains key to establish relationships for engagement in the future.