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Gibson Mhaka, Zimpapers Politics Hub
THE European Union (EU) has reaffirmed its commitment to increasing foreign direct investment (FDI) in Zimbabwe, alongside offering duty-free access to European markets for products exported by local companies, EU Ambassador to Zimbabwe, Jobst von Kirchmann has said.
Speaking at the EU stand at the ongoing Zimbabwe International Trade Fair (ZITF) in Bulawayo, Ambassador von Kirchmann highlighted this unique trade opportunity at a time when global discourse is often dominated by tariffs and trade barriers.
“We have participated in ZITF for the past two or three years, which reflects our long-standing and reliable commitment to the people of Zimbabwe,” he said.
“As one of the largest bilateral donors over the last 45 years, we are immensely proud of the positive impact we have had in the country. At a time when discussions are focused on tariffs and duties, we are pleased to say that any Zimbabwean company can export products to the EU completely duty and tariff-free.”
Ambassador von Kirchmann acknowledged that while some EU imports into Zimbabwe are subject to duties, the export conditions offer a significant advantage for local producers.
He also announced a notable increase in European FDI into Zimbabwe.
“In recent years, we have tripled our foreign direct investment from the EU into Zimbabwe. It’s a significant step forward. Collectively, the EU and its member states are investing over 500 million Euros in sustainable agriculture and the empowerment of women.”
This investment, he explained, includes providing drought-resistant crops to farmers and supporting vulnerable communities to improve livelihoods across specific regions of Zimbabwe.
“We are working in partnership with the government to boost the private sector. Our presence here underscores that, but I believe the key highlight this year will be the inaugural EU-Zimbabwe Business Forum.”
Ambassador von Kirchmann also noted a current trade imbalance that favours Zimbabwe, a scenario the EU is comfortable with.
“As you can gather from what I’ve shared, there is a trade deficit —Zimbabwe exports more to the EU than it imports. But we are absolutely fine with that,” he explained.
He pointed out that Zimbabwe’s main exports to the EU include horticultural products, which the EU imports in large quantities, while imports from Europe mostly consist of machinery.
“The EU is currently Zimbabwe’s fourth-largest trading partner, with a trade volume of over 700 million Euros annually. We import over 40 percent of Zimbabwe’s horticultural exports, we may well be the country’s largest buyer in this sector.”
The ambassador expressed optimism for continued growth, emphasising that many local businesses remain unaware of the duty-free access they have to the European market.
“Each time I engage with companies, I come across many that are still unaware they can export to the EU without paying any duties or tariffs. This is a fantastic opportunity, and I hope that, through your media and others, more companies will come to know and take advantage of it.”
Reaffirming the EU’s focus on private sector development as the engine of economic growth and industrialisation, Ambassador von Kirchmann outlined recent initiatives aimed at supporting local businesses.
“In 2025, the EU is concentrating on the private sector. Let’s be honest, who really makes a difference? Is it us? Is it the government? We are facilitators, but it’s the private sector that invests, creates jobs, and drives industrialisation.
“In the past six months alone, we have introduced several initiatives for the private sector, including on-lending facilities. We signed 60 million Euros worth of lending agreements through the European Investment Bank with NMB and Stanbic Bank. These facilities offer long-term loans, up to seven years, at low interest rates. It’s a great achievement and has been widely praised, given the scarcity of capital in the market.”
Looking ahead, Ambassador von Kirchmann announced that the first-ever EU-Zimbabwe Business Forum will take place from May 20 to 22 in Harare. The event is intended to promote joint ventures and partnerships between European and Zimbabwean companies in key economic sectors.
“Together with Zimbabwean stakeholders, we’ve identified high-potential value chains: agriculture, horticulture, and agro-processing, including berries, citrus, and macadamia nuts, as well as renewable energy, particularly off-grid solutions, and services for the mining sector.
“In mining, we are focusing not on primary extraction but on beneficiation, mining supplies, technical expertise, and support services, areas where we can contribute significantly.”
Ambassador von Kirchmann concluded by reaffirming the EU’s strong commitment to deepening economic co-operation with Zimbabwe.
derick.khumalo