EU-Zim sign US$80m financing agreements

Farirai Machivenyika, Harare Bureau
THE European Union yesterday signed four financing agreements worth Euro 75 million (US$80 million) with Zimbabwe and pledged to mobilise European businesses to invest in the country as relations between Brussels and Harare turn a new page.

Speaking at the signing ceremony in Harare, EU Ambassador to Zimbabwe, Jobst von Kirchmann, expressed commitment to further strengthening relations between the bloc and Zimbabwe through continuous high-level engagements.

This comes as President Mnangagwa’s engagement and re-engagement drive continues to bear dividends with formerly hostile nations in Europe mellowing to the Second Republic and seeking new partnerships.

The four financing agreements are targeted at agri-value chain support with a budget of €26 million, bio-diversity enhancement and resilience building also with a €26 million budget, transparency and accountability with a €16 million budget and promotion of gender equality and women empowerment with a €7 million budget.

The agreements were signed by Amb von Kirchmann and Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, at a ceremony attended by senior Government officials and several ambassadors from EU Member States.

“Together as Team Europe, we have started to look into the possibility of bringing European companies to Zimbabwe for investment. I have written to your Ministry (Finance and Economic Development and Investment Promotion) and also to the other relevant ministries and I hope there will be a lot of feedback and a lot of support because we need to be partners to make that a success and also motivate companies to benefit from the opportunities here in Zimbabwe.

“Honourable Minister (Prof Ncube) let me conclude by reaffirming Team Europe’s very strong commitment to a partnership with Zimbabwe. Whether it’s today here, whether it’s in the ministerial process or in any other process, we stand ready to be a solid partner for Zimbabwe,” Amb von Kirchmann said.

He said there was scope to increase trade between Zimbabwe and the EU which currently stands at over US$700 million and is in Zimbabwe’s favour.

The EU and Zimbabwe have a comprehensive trade agreement and the bloc is Zimbabwe’s fourth largest trading partner, importing 42 percent of Zimbabwe’s horticultural produce.

The agriculture value chain support addresses green economic growth by supporting the horticultural and the small grains value chains, as well as renewable energy for the value chain development while the bio-diversity enhancement and resilience funding is meant for supporting human-centred biodiversity conservation efforts through support to wildlife conservation efforts which implies resilience-building activities for concerned populations.
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The support for transparency and accountability will contribute to increasing citizens’ effective participation to hold the Government to account and claim their rights, and to strengthen service delivery and access to justice at the local level while funding for gender equality and women empowerment will focus on strengthening women’s socio-economic empowerment as a means of ending violence against women and girls.
Amb von Kirchmann said their support was guided by Government’s policies and programmes.

“We can only do what you as Government, what you have fixed as priorities and that brings me of course to the alignment with the National Development Strategy 1 but also with the different strategies,” he said. “We should have regular dialogue which we didn’t have and I think it is urgent and it is important to have it as soon as possible and to get guidance from you as well on how we should operate, so let me make this pledge for an even greater co-operation.”
In his remarks, Prof Ncube expressed the Government’s gratitude for the EU’s support.

“The support is building upon and reinforcing the investments made under the 11th European Development Fund and dovetails with our national development thrust as enunciated in the NDS 1.

“Alignment of development co-operation with national priorities is a key tenet for development effectiveness, and we would like to commend the EU for achieving this, and would like to encourage increased adoption of country systems and Government involvement in the implementation of the projects, to further strengthen ownership and sustainability of the interventions. Let me conclude by assuring you Your Excellency (Amb von Kirchmann), and everyone present of the Government of Zimbabwe’s commitment to full re-engagement with the EU,” he said.

Yesterday’s support came under the 2021 – 2027 Multi Annual Indicative Programme (MIP), where Zimbabwe was allocated € 148 million targeting the following thematic areas; green economic growth, social recovery and human development, and good governance and citizens’ rights.

In 2022, Government and the EU signed two financing agreements on ‘improving health outcomes for the population of Zimbabwe (€ 41 million), and ‘support to the Zimbabwean electoral process’ (€6 million), under the same MIP.

Zimbabwe’s relations with the EU have thawed owing to the re-engagement efforts championed by President Mnangagwa resulting in the two parties convening high-level meetings to discuss areas of co-operation among various issues.

For the second year running, the EU exhibited at the Zimbabwe International Trade Fair in Bulawayo while a high-level delegation with representatives from Italy, Germany, Sweden, Romania, and France also participated at the ZITF and pledged to support the country’s Vision 2030 of becoming an upper-middle income economy by 2030.