Zim ratifies BIPPA with Korea

ZIMBABWE last week ratified its Bilateral Investment Promotion and Protection Agreement (BIPPA) with the Republic of Korea, as President Mnangagwa’s administration continues to demonstrate commitment to the rule of law and upholding of property rights.

BIPPAs are undertakings meant to provide guarantees to businesses from involved countries on the safety of their investments if they decide to establish businesses beyond their borders.

To date, Zimbabwe has ratified BIPPAs with 13 countries, with the Republic of Korea being the latest addition to the list.

In a statement, Acting Permanent Secretary in the Ministry of Foreign Affairs and International Trade Ambassador Lovemore Mazemo described the agreement as a milestone.

“The agreement entered into force on 7 April 2020.

“This milestone development is a clear demonstration of Zimbabwe`s commitment to the rule of law and respect for property rights,” he said.

There is optimism that the BIPPAs will position Zimbabwe as a safe destination for capital.

“The ratification of this agreement will afford investors from the two countries full protection and security of property rights through non-discriminatory treatment and compensation in case of expropriation or nationalisation.

“The agreement also paves way for mutual flow of capital by intensifying co-operation between private enterprises in both countries with a view to stimulating productive use of resources,” said Ambassador Mazemo.

The country has 19 BIPPAs awaiting ratification while another 20 are still under negotiation.

Other countries which have signed and ratified similar agreements with Zimbabwe include Denmark, Germany, Switzerland, Netherlands, China, India, Russia, Kuwait, Iran and South Africa.

Agreements with countries like the Czech Republic, Sweden, Korea Republic, the United States of America, Malaysia and Thailand are currently under negotiation.