dyton mupawaendaGibson Nyikadzino
Zimpapers Politics Hub
ZIMBABWE, since the advent of the Second Republic on November 24, 2017, has been carefully carving its way back into the family of nations after years of externally engineered pernicious rigidities meant to politically isolate and economically alienate it.
In his inaugural address, President Mnangagwa was mindful to say: “I implore you all to declare that never again should the circumstances that have put Zimbabwe in an unfavourable position be allowed to recur or overshadow its prospects.”
Following a turn into the millennium, Zimbabwe endured years of successive hardships that extended to many spheres which affected education, health, infrastructure, agriculture and mostly Zimbabwe’s engagements with the external, Western world.
As the West turned its back on Zimbabwe, the embrace of a rising China strengthened the foundations that had been shaken by the West.
The 2003 Look East Policy helped drift the country from the West to the East where the economies of China, India, the United Arab Emirates and Turkey, among others provided balance to Zimbabwe’s economic endeavours.
Commenting on the decision to look for new friends and alternative markets, the late President Robert Mugabe in 2005 said: “We have turned East where the sun rises, and given our backs on the West where it sets.”In a globalised world, where nations now share at least greater common norms and standards in their adherence to economic development, investment opportunities, democracy, freedom, human rights, probity and rule of law, the Second Republic’s policies of “Open for Business” and “Enemy of none and friend for all” sought to move the country to the centre.
The practicality of this move was seen during President Mnangagwa’s November 2017 inauguration which was attended by then British Minister of State for Africa Rory who confirmed Britain’s readiness to work with Zimbabwe.
“Britain wants to be a genuine partner for Zimbabweans as they forge a new future,” he said.
This commitment was visible during the April 2018 meeting between the late former Minister of Foreign Affairs Dr Sibusiso Moyo and his then British counterpart Mr Boris Johnson. Britain has intent to meaningfully engage with Zimbabwe at bilateral and multilateral levels.
“President Mnangagwa has been in power for 150 days and while Zimbabwe has made impressive progress, there’s still much to do. That’s why Britain, the Commonwealth and the wider international community will do everything it can in supporting Zimbabwe on its path of reform,” said Mr Johnson.
In an early 2023 House of Lords debate, Lord Hugo George William Swire reiterated Britain’s commitment to engage Zimbabwe after the November 2022 visit by assistant secretary-general of the Commonwealth, Professor Luis Franceschi.
Subsequent statements by former Commonwealth Secretary-general Baroness Patricia Scotland were that Zimbabwe “is putting a great deal of energy and commitment to be readmitted back into the Commonwealth”.
Harare’s diplomatic engagements with London continue to generate positive feedback, after nearly two decades of acrimony.
“For us, as the United Kingdom, there are five main reasons why we are here. Firstly, we are doubling down on trade. We are working harder to increase Zimbabwe’s capacity to export to the UK, to Europe and globally,” said British Ambassador to Zimbabwe Pete Vowles at last month’s ZITF meeting.
As of May 2, total trade in goods and services between the United Kingdom and Zimbabwe stands at $460 million in the four quarters to the end of December 2024, an increase of 14 percent or $56 million compared to 2023 trade figures.
Positive change, not yet there
Zimbabwe continues to maintain iron-clad bilateral relations with China, one of its biggest trade partners. On the sidelines of the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) and President Mnangagwa state visit in September last year, China’s President Xi Jinping said relations for the two countries were setting “a good example of solidarity”.
“Our two countries have continued to deepen political mutual trust and achieved remarkable results in cooperation, setting a good example of solidarity and coordination among developing countries,” President Xi said.
In the first nine months of 2024, Zimbabwe’s trade exchanges with China reached $3 billion, a 25,6 percent increase from the previous year. The country exported goods worth $2,1 billion to China and imported $951 million worth of goods. Tobacco exports contributed a significant portion, accounting for 40,6 percent of the total, with a $790 million value, a 38 percent increase from the previous year.
With India, Zimbabwe has so far secured an estimated private sector investment of around US$600 million, employing directly some 5 000 people in Zimbabwe. The number of Indian companies operating in Zimbabwe is rising steadily. Ambassador Bramha Kumar said figures may be slow, but they are rising.
“The bilateral trade as of now is between $150 to $200 million, which does not reflect strong ties between the two countries. It may be slow, but they are rising,” he said.
Calls to improve trade are not only shared by India. France, too, which is making some economic inroads in Zimbabwe, says a lot can still be improved.
“The current volume of trade between Zimbabwe and France is around $82 million, which is modest when you think of the importance of the French economy and the importance of the Zimbabwean economy in Southern Africa. So, there is a real room for improvement.
“I am a little bit optimistic, as recently the trade has increased, for example, by more than 30 percent in 2023. The existing relationship, I must say, can be still improved a lot and developed,” France’s Ambassador Paul-Betrand Barets said.
Exercising patience with the US
As trade figures improve between Zimbabwe and states it is engaging and re-engaging, there is more to do when it comes to engaging the US. This is to balance the interests of the country in dealing with all sovereign countries.
From the East (China) or West (the US), Zimbabwe needs to engage both to associate with development models from the world’s two leading economies, in order to build, redefine or remodel its template.“In today’s world one should be wary of continuing to look east without also looking West, North and South.
At any rate, if you continue going East, you will inevitably come to the East because the East and the West are now two sides of the same coin,” said Mr Obert Gutu in 2010.
Statistics from the office of the United States trade representative are not as impressive, compared to other greater economies.
“US total goods trade with Zimbabwe were $111,6 million in 2024. US goods exports to Zimbabwe in 2024 were $43,8 million, up 10,6 percent or $4,2 million from 2023. US goods imports from Zimbabwe in 2024 were $67,8 million, down 41 percent or $47,1 million from 2023,” read the statistics.
To improve Zimbabwe-US relations, the two parties should continuously talk. Zimbabwe can also leverage on its minerals, in particular lithium, which is key in the green transition and likely to impact the electric vehicles (EVs) market.
Global trade developments unfolding pertaining the world’s economic powerhouses in relation to the manufacture of EVs are understood to be read within the context of the US’ Inflation Reduction Act (IRA).
The US is believed to be angling to use the IRA to impose global lithium prices, and determine who lithium mining countries should sell their mineral to.
“In the year 2030, 2040, 2050, the global demand for EVs and demand for lithium and other critical minerals will continue to rise. So, Zimbabwe has that important weapon for your economy,” South Korea’s Ambassador to Zimbabwe Park Jae Kyung told The Herald.
Online Reporter