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Home » News » Business » Zimbabwe woos Botswana investors

Zimbabwe woos Botswana investors

Publishing Date : 19 February, 2018

Author : REARABILWE RAMAPHANE

Zimbabwe President Emmerson Dambudzo Mnangagwa has called on Botswana business community and Chambers of Commerce to consider his country as they expand their businesses.


Mnangagwa was speaking at the Botswana –Zimbabwe Business Forum on the sidelines of his state visit to Botswana this past Tuesday. He said the people of Zimbabwe will forever be grateful for the support they received from the government and people of Botswana during his country’s difficult times.  “We are bound together by a shared culture, history and geographically we are one, which should inspire us to work together in our national growth and economic development of our 2 countries,” he said.


Mnangagwa said the forum was critical in building on the goodwill that existed between the two countries adding that it was a good platform in complimenting the bilateral relations. “The gathering is most opportune in implementing the raft of incentives for economic growth and development in my country, Zimbabwe is open for business. We equally recognize the need to engage and re-engage for socio-economic development. We are determined to make sure that Zimbabwe is an investment nation where capital feels safe,” he said.


Mnangangwa who took over the reins after the military negotiated long time leader, Robert Mugabe out of power late last year, said his administration was alive to the fact that Zimbabwe needed to put robust economic transformation and revitalization strategies and reforms to return the country‘s economy to its glory days. “We have abundant investment opportunities in mining, manufacturing and infrastructure development sectors. We are inviting investors to come to the new Zimbabwe,” he said.


The President of Zimbabwe inherited a scattered economy with over 90 % unemployment rate. Western imposed sanctions have not been friendly to that country either. The Zimbabwe leader says over the years his country suffered lack of infrastructural development due to lack of foreign financing.


For his part the minister of Investment, Trade and Industry (MITI) Vincent Seretse noted that the Botswana –Zimbabwe Forum organized by the Botswana Investment & Trade Center (BITC ) presented a golden opportunity for the two countries to strengthen foundations and facilitate open networking for the business communities to take advantage of the abundant trade and investment opportunities.


“Our predecessors in government pioneered the great vision of developing strong economic links between our great countries and it is for this reason that today, we have trade facilitation instruments such as Botswana/Zimbabwe bilateral trade agreement, which allow for goods traded between our countries to be exempted from payment of customs duties, provided they meet the minimum requirement of 25 per cent local content,” he said.


Seretse said that Botswana’s manufacturing landscape comprised of several companies with Zimbabwean shareholding. He said the majority of them are operating in the timber and sugar packaging industries. “These companies have over the years invested around P132 million in Botswana, with an estimated annual turnover of P392 million, and they employed around 436 permanent employees, and an additional 436 part-time employees,” he said.


Minister Seretse noted that the aforementioned figures do not include one of the largest investments shareholding, in the mobile telecommunications sector by Zimbabwean billionaire, Strive Masiyiwa who is one of the major founding shareholders of Mascom, Botswana’s largest mobile network. Masiyiwa has since reduced his stake in Mascom with MTN Group and BPOPF the major shareholders.


The Botswana-Zimbabwe Business Forum saw experts and chambers of commerce representatives in different economic sectors from both countries present on existing business and investment opportunities. Major Highlights from the presentation are that lucrative investment opportunities in the mining sector exist in Zimbabwe. Isaac Kwesu of The Zimbabwean Chamber of Mines said his country was home to one of the largest Lithium and Chrome reserves in the world.


Other presenters, Richard Mbaiwa from the Zimbabwean Investment Authority revealed that the new administration of Zimbabwe was putting in place reforms such as no restriction on the amount of foreign currency brought into the country in order to attract foreign direct Investment.


He also added that  100 % repatriation of disinvestment proceeds , 100% remittance of dividends, Operation of local foreign currency accounts (FCA), Borrowing from local financial system for working capital purposes  as well as authorized permission on Offshore borrowing were amongst other incentives put in place and administered by the his organization to create a conducive environment for doing business in Zimbabwe.


Other presentations included that of Charles Siwawa of Botswana Chamber of Mines who shared that Botswana’s mining sector was still recovering from the liquidation of some major companies due to decline in global commodity prices in 2016. However he said opportunities existed in supply of materials and equipments as well as other value chain opportunities in the sector. Botswana authorities presented on the opportunities that existed in the SPEDU region urging Zimbabwean farmers to consider exploring the rich agricultural land in the Phikwe area. Zimbabwean business people were made were also made aware of other opportunities that existed in Botswana such as the cargo, transport and logistics.


The stand out moment at the forum was the signing of Memorandum of Understanding by Botswana Investment & Trade Centre (BITC) and ZimTrade on strengthening the relationship between the Parties and the private sectors of Zimbabwe and Botswana respectively. The MOU is set to facilitate collaboration and cooperation between the parties in matters of common interest and establish the working arrangements necessary for the implementation of the MOU; to collaborate with each other to promote and strengthen trade relations between public and private sector institutions and operators, in sectors to be mutually agreed, with a view to expand trade and economic cooperation between Zimbabwe and Botswana.

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