malvernmugadzikwa
IN this second instalment of Foreign Affairs and International Trade Minister AMBASSADOR FREDERICK SHAVA’s interview with our Reporter DEBRA MATABVU, he outlines how Zimbabwe’s international trade has grown exponentially over the last few years.
************
Q: You recently attended the 21st edition of the Nordic-African Foreign Ministers meeting in Copenhagen. What were some of the issues discussed in the meeting that will benefit Zimbabwe?
A: The Africa-Nordic Summit deliberated on the ambitious goals that could shape African-Nordic partnerships in the next five to 10 years, as well as the specific aims of the 2024 Nordic-African Foreign Ministers meeting.
The meeting also advocated a pragmatic approach, shifting away from mere rhetoric.
Energy transition towards a green revolution, fuelled by affordable renewable energies, was one of the issues that the meeting focused on, within the broad context of the fight against climate change.
The meeting further expressed strong reservations regarding the sanctions imposed on Zimbabwe by Western powers.
These sanctions were cited by African Union members as a form of hypocrisy and a hindrance to Zimbabwe’s development.
The meeting also delved into the lack of access to credit lines due to sanctions, particularly in the case of Zimbabwe.
We also discussed, under international peace and security issues, the Russia-Ukraine conflict, and the Israel-Palestine crisis.
Q: Zimbabwe has been selected to host the next Nordic-African Foreign Ministers meeting to be held in Harare next year. What does this say about Zimbabwe’s re-engagement policy and what is the significance of this meeting to the country?
A: It is a huge vote of confidence that Zimbabwe will host the Nordic-African Foreign Ministers meeting in 2025.
It will be our honour and privilege to play host to the African and Nordic ministers during the said meeting, which presents a perfect opportunity for Zimbabwe to strengthen and diversify its relations and tap into the economic and trade prospects offered by the Nordic and other African countries.
The meeting will present a fitting platform to deepen dialogue with Nordic countries, as well as to exchange views on bilateral and multilateral issues of mutual interest and concern.
The Nordic-African Foreign Ministers meeting will enable Zimbabwe to play its role in addressing global challenges such as climate change, migration and security issues.
The ministers’ meeting will also play a crucial role in promoting trade and investment, and serve as a catalyst for increased trade and investment between the two regions.
It is envisaged that the meeting will broaden discussions on deepening economic cooperation between the two regions, thereby opening up opportunities for businesses, investments, trade and tourism.
The event will further promote cultural exchanges over and above politics and economics, and enhance understanding between the two regions, thereby fostering goodwill and cooperation.
Cooperation between the Nordic and African countries has immense potential to contribute to regional security and stability, which is beneficial for both sides.
Overall, the meeting will serve as a forum for constructive dialogue and collaboration on a range of issues that are of mutual interest to the African and Nordic countries.
The nomination of Zimbabwe to host the Nordic-African Foreign Ministers meeting is evidence that the re-engagement efforts are bearing fruit.
The Government is optimistic that the event will help boost cooperation between Zimbabwe and the Nordic countries and, of course, that between the African and the Nordic countries, generally.
Through re-engagement efforts, there are notable projections where the two sides can also derive mutual benefits from cooperating in technology and skills transfer, technical and financial support, and access to markets, amongst others.
Q: For years, Zimbabwe has contributed immensely to the maintenance of peace and stability in the region. What are your thoughts on the current security situation in Southern Africa, and how will Zimbabwe contribute to regional security efforts?
A: The security situation in the region is relatively calm and peaceful, except for the eastern DRC, which has continued to experience attacks by armed groups, which have displaced millions of people.
SADC has since deployed a peace mission to the DRC to assist the government of the DRC in the restoration of peace and stability, in line with the SADC Mutual Defence Pact, whereby an attack on one of our countries is an attack on all of us.
The situation in Mozambique’s Cabo Delgado region had improved, but the Islamists still pose a threat to peace and stability in the country and, of course, to the region.
The SADC Mission in Mozambique is scheduled to withdraw by July 2024, although the Rwandan forces will remain under a bilateral agreement between the two countries.
It is equally important to refer to the current non-traditional human security threat that the region is facing.
Zimbabwe is assuming the chairmanship at a very difficult time when the regional peace and security of human and wildlife are threatened by the El Niño conditions.
In that regard, one of our top priorities is preserving human and wildlife through mitigatory measures to the effects of El Niño and La Niña.
As for the second part of your question, on how Zimbabwe will contribute to regional security efforts, Zimbabwe recognises the fact that peace, security and political stability are essential ingredients for socioeconomic development nationally, regionally and internationally.
Zimbabwe has been instrumental in the maintenance of peace and security in the region, either through contributing troops to SADC missions or the other assistance mechanisms.
Our developmental vision of becoming an upper middle-income society by 2030 makes us a stakeholder in the maintenance of peace and security in the region.
Q: The Second Republic has achieved significant milestones in enhancing international trade in recent years. What do you attribute this growth to?
A: Indeed, trade is one of the areas that is part of our mandate, and is one of the areas where significant gains have been recorded.
Let me hasten to say the gains can be attributed to a number of reforms and initiatives undertaken by the Government.
These, inter alia, are:
Reaffirmation, engagement and re-engagement initiatives
You may recall that at the advent of the Second Republic, His Excellency, President Mnangagwa, laid out a foreign policy thrust that focused on reaffirmation, engagement and re-engagement with those countries and international financial institutions that had decided to disengage with the country.
The overarching objective was to ensure that Zimbabwe claimed its rightful position in the comity of nations.
The net effect of these initiatives is that countries and financial institutions that had previously shunned doing business with Zimbabwe have been slowly coming on board, targeting various sectors of the economy.
Of course, we still have some way to go before all the impediments placed on the country are removed fully and unconditionally.
For instance, the Zimbabwe-UK (United Kingdom) economic cooperation has been strengthening under the UK-ESA (Eastern and Southern Africa) Economic Partnership Agreement.
As a result, our exports to the UK are on the rebound. An analysis of trade data between the UK and Zimbabwe from 2014 to 2021 shows that the volume of trade between the two countries was decreasing to as low as US$14 million in 2021.
In 2023, the country exported US$ 21,5 million worth of goods to the UK, reflecting an upward trajectory.
Trade negotiations
Zimbabwe is engaged in bilateral, regional and multilateral trade negotiations at various fora. These negotiations are aimed at affording preferential treatment to Zimbabwean exports.
Let me apprise you that the economic partnership agreements involving Zimbabwe, the EU and the UK offer 80 percent of Zimbabwean exports duty- and quota-free access to the EU and UK markets.
Consequently, our agro sector, particularly the horticulture sub-sector, has benefited a lot as evidenced by a surge in horticulture exports to the EU and UK markets.
Development of the services sector
Over the recent past, Zimbabwe has seen nascent growth of the services sector.
The sector’s contribution to the national gross domestic product (GDP) has increased from 30 percent in 2017 to 55 percent in 2023.
This positive trend is attributed to business-friendly policies, among others.
Trade and investment missions
ZimTrade, in conjunction with other ministries, departments and agencies, has been undertaking inward and outward trade and investment missions to market Zimbabwean export products.
One distinct feature of these missions is that they have been targeted, with very specific deliverables.
These have resulted in consolidation of existing markets, revival of some markets such as the UK and opening of new markets in the Middle East.
Opening new markets
The opening of new markets has contributed to the growth in international trade.
This has been augmented by the opening of new embassies in these new markets such as the United Arab Emirates, Belarus, Pakistan and Saudi Arabia.
We have also deployed trade promotion officers to some of these key new markets to deal specifically with trade matters and pursue economic diplomacy.
Q: How does Zimbabwe plan to harness the African Continental Free Trade Area (AfCFTA) to further enhance the gains it has scored in international trade?
A: As you are already aware, the AfCFTA seeks to create a single continental market with an estimated population of 1,3 billion people and a combined GDP of approximately US$3,4 trillion.
Suffice to say, Zimbabwean companies can embrace and leverage on the AfCFTA for larger and more diverse markets for exporting products and sourcing cheaper raw materials.
Another interesting aspect of the AfCFTA that Zimbabwe can take advantage of to boost international trade in the immediate future is the launch of the second phase of the Guided Trade Initiative (GTI) in 2024.
For trade in goods, the scope of the GTI has been expanded in both product and country coverage across the five African regions and island states to the current 31 state parties.
The AfCFTA Secretariat will be developing and facilitating a parallel initiative on Guided Trade in Services, as opposed to just goods.
This entails that Zimbabwe can commence preferential trade in both goods and services with other countries once we meet all the requirements for preferential trade.
As you may be aware, Zimbabwe, through the Reserve Bank of Zimbabwe, is part of the AfCFTA Pan-African Payment and Settlement System (PAPSS).
The PAPSS not only addresses technical and financial challenges; it also aligns with broader economic goals such as increased trade, enhanced regional integration and greater economic independence.
The PAPSS addresses critical barriers that have historically impeded intra-African trade and hampered economic integration across the continent.
Examples are enhanced trade efficiency through cross-border payments, enhanced capital mobility and reduction of dependency on external currencies.
Africa’s digital economy, already valued at US$115 billion and still in a nascent phase, is expected to reach US$712 billion by 2050.
In that regard, Zimbabwe can take advantage of the recently concluded Protocol on Digital Trade to tap into the growing digital economy.
Improvement in trade facilitation
Trade facilitation is key in international trade. In that regard, attending to “At Border Gear Issues” is very important.
These issues are matters related to transaction costs incurred by business enterprises at the border and these typically include bottlenecks in trade-related infrastructure such as transport, communication, cost and availability of finance, as well as administrative border procedures and documentation requirements.
The ministry will continue to engage relevant authorities to address these matters.
Suffice to say that we have a National Trade Facilitation Committee that comprises officials from trade-related ministries/departments/agencies, which meets regularly to address these matters that affect trade.
Trade promotion
Trade promotion is very important to establish and maintain the presence of Zimbabwean products in the international market.
In that regard, the ministry is intensifying and strengthening its trade promotion activities.
This will be done in collaboration with other entities that include ZimTrade, the national trade development and promotion agency. Markets can be grouped into existing and new ones.
Existing markets include our traditional partners such as in the Southern African Development Community (SADC), where most of our exports are concentrated.
Efforts will be intensified to break into new markets within the bigger AfCFTA region, in line with the African Union (AU) effort to boost intra-Africa trade.
The ministry will strive for increased market contacts through participation at fairs and exhibitions, and trade support.
Engagement and re-engagement efforts
It is important to note that trade does not happen in a vacuum.
Since the Government of Zimbabwe embarked on the engagement and re-engagement drive, it changed a lot of the international community’s negative perception about Zimbabwe.
This rebuilding of the national image means our trade partners develop a positive disposition towards Zimbabwe, and this benefits our trade and investment relations.
Capacity-building initiatives
Working with our development partners, the ministry advocates capacity-building initiatives.
These initiatives would include institutional capacity of agencies involved in trade, business support organisations and, to an extent possible, businesses themselves.
Targeted marketing
It must be noted that there are largely unexploited populous markets in Africa, which offer immense opportunities for Zimbabwe under the AfCFTA.
Zimbabwe’s exports are concentrated in the SADC (Southern African Development Community) and COMESA (Common Market for Eastern and Southern Africa) regions.
Populous economies such as Nigeria, Ethiopia, Egypt, Algeria and Ghana remain largely untapped.
Zimbabwe is targeting such markets.
Industrial development and competitiveness
I am sure you will agree with me that we definitely need tradeable products to benefit from any trading arrangement, and the AfCFTA is no exception.
In that regard, the ministry — together with other relevant ministries, departments and agencies (MDAs) — is promoting policies that focus on boosting domestic industry competitiveness through increased productivity, innovation and technology adoption.
Promoting gender mainstreaming in trade
As you may be aware, at AfCFTA level, there is agreement on the need for gender mainstreaming.
There is already a protocol on women and youth involvement in international trade.
In that regard, Zimbabwe will seek to take advantage of this protocol to ensure that the role of women and youth businesses is amplified.
As enunciated by the President, “no one and no place should be left behind”. Even in AfCFTA, the so-called “small businesses” should be an integral part of the process.
Standards and quality
Standards play a major role in acceptance of products in international markets.
Our products should be comparable or, rather, of an acceptable standard on the market.
The ministry promotes policies that seek to implement internationally accepted quality standards and accreditation programmes to develop local standards.
This will be done by developing a national policy on standards and quality assurance, which would ensure adherence to the World Trade Organisation Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) agreements, among other international standards agreements.
Further, the ministry will call upon the Government to put in place legislation that will make it mandatory for companies to comply with specified national and international standards on both imports and exports.
Cluster initiatives
Zimbabwe is implementing a cluster initiative as part of the cotton, clothing, leather and leather products value chains, derived from COMESA’s Industrial Cluster Development Programme, an approach also shared by the AU.
The programme is premised on leveraging on the development of small and medium enterprises (SMEs) by building on their linkages to large-scale enterprises, thereby harnessing opportunities for industrial expansion and export growth, as well as the transfer of expertise and knowledge.
The establishment of such clusters and incubation hubs will be extended to other sub-sectors through the promotion of subcontracting arrangements and supply contracts.
SME development
In line with the commitment to pursue export-led development, efforts are ongoing to improve the environment for SME development and to formalise informal business through improving access to finance, technology, and export marketing and training.
Diversification of export basket of goods and services
It is well known that most African economies are mainly producers of primary goods and these, in turn, tend to be competitors, in a way, with limited intra-continental trade.
This can be traced to colonial times when the systems were designed to extract raw materials from Africa for industries in the West and Europe.
In order to unlock value in the AfCFTA, it is important that we export value-added products.
As such, supporting and strengthening identified priority value chains and trade in services with an export orientation will also be prioritised.
Inclusiveness
In order to derive value from the AfCFTA, it is vital that an inclusive approach be adopted.
In that regard, stakeholder engagement, communication, advocacy and outreach in respect of the AfCFTA to all segments of Zimbabwean society will be vigorously pursued.
I, therefore, urge every business to seize the new economic opportunities presented by the AfCFTA.
Q: Zimbabwe possesses a significant diaspora community. How does the Government plan to harness this significant resource for development?
A: As you may be aware, the first Zimbabwe Diaspora Policy was enacted in 2016 as a framework to respond to the opportunities presented by our nationals and citizens abroad.
Since its inception in 2017, the Second Republic leadership, at the highest political level, has been the main driver of the formulation of a diaspora engagement policy and its main executioners.
To this end, in 2021, the Government approved a concept paper on the review of the 2016 Zimbabwe Diaspora Policy with a view to enacting a new policy that facilitates the participation of our diaspora in national development.
The reviewed policy is also expected to define the Government’s role in the protection and promotion of the interests and safety of the citizens and nationals abroad.
The new policy will be aligned with our national development strategies.
You may wish to note that the process of reviewing the diaspora policy is already at an advanced stage. We look forward to having a new policy by the third-quarter of 2024.
Therefore, going forward, the Government’s diaspora engagement, premised on the new policy, will include:
- Continued high-level engagement with the diaspora by the Presidium during official visits abroad. In this instance, I assure you that His Excellency, the President, Dr Mnangagwa, and the two Honourable Vice Presidents, will be happy to continue interfacing with the diaspora with a view to strengthening the already existing cooperative roadmap between Government and the Diaspora in support of the country’s development aspirations and enhanced service delivery.
- We look forward to undertaking inward and outward diaspora outreach programmes. Internally, the Ministry of Foreign Affairs and International Trade, working with other Government MDAs, will undertake verification visits to all provinces, profiling all bankable projects and investment opportunities for possible uptake by our diaspora. Externally, we will undertake the “Know Your Diaspora” outreaches to countries where Zimbabwean citizens and nationals are domiciled. These external outreaches will create knowledge about characteristics and endowments of the citizens abroad, with a specific focus on the size, concentration and composition of our diaspora in a particular country, levels of education, professional and skills profiles, needs and expectations from the Government, and from the diasporans, among other variables.
- We will also continue holding diaspora investment conferences, such as the one held in April 2023 in Bulawayo, and the most recent one that took place in Masvingo from April 11 to 13, 2024.
The diaspora investment conferences are conducted in an effort to build confidence and trust of our diaspora in Government initiatives, thereby improving their participation in the country’s development, as espoused in the National Development Strategy 1.
The conferences provide a platform to address challenges and hindrances that impede diaspora uptake of opportunities available in the provinces and at the national level.
Our expectation is that these conferences will provide a platform for the diaspora to engage the Government and private sector on initiatives that would spur innovation, economic growth and development.
In light of the aforementioned, and any other efforts that will be undertaken, I believe our diaspora engagement policy will make sure that our diaspora shift from sending remittances to giving emphasis on investment.
Q: President Mnangagwa has reconfigured Zimbabwe’s foreign policy to focus more on economic diplomacy. Tell us how Zimbabwe’s diplomatic corps have worked to push through this agenda and the results the country has garnered therefrom?
A: On the trade and economic front, economic diplomacy has been at the core of the reaffirmation, engagement and re-engagement agenda.
Our missions abroad have been proactive in promoting trade and economic cooperation with their host nations.
In buttressing their efforts, the Ministry of Foreign Affairs and International Trade has been continuously engaging foreign embassies situated in Harare on the same.
The country has witnessed more foreign direct investment and foreign business delegations visiting the country.
During the recently held Zimbabwe International Trade Fair that took place in Bulawayo, there was a 20 percent increase by international exhibitors.
This coincided with Canadian and Australian business delegations that visited the country to explore trade and investment opportunities.
In the post-Covid era, our embassies continue to play a vanguard role in facilitating Zimbabwe’s participation at various international trade fairs and exhibitions.
For example, Zimbabwe’s Embassy in Tokyo, Japan, has been pivotal in our preparation for the forthcoming Osaka Expo 2025 for the country to derive maximum benefits at the exposition.
Due to our partnerships with the international community, in 2022, Zimbabwe had record tobacco and wheat production in the country’s history.
I wish to observe that our diplomatic corps have been pivotal in facilitating investment in the mining sector, which contributed to exponential growth of the sector beyond the US$12 billion target set a few years back.
We also encourage the local business community to take full advantage of our embassies as the Government seeks to promote private sector cooperation in our engagement with other countries.
Our embassies have been providing critical information and facilitation to both local businesses that seek to venture outside the country and foreign businesses wishing to invest in Zimbabwe.
Q: Can you give the current state of Zimbabwe’s international trade?
A: The current state of play with regard to international trade is encouraging, as it is on the upward trajectory.
This is despite the headwinds being experienced in the world due to conflicts and general economic turbulence.
It is pleasing to note that trade has also recovered from the disruptions and challenges of the Covid-19 pandemic.
Q: We understand Zimbabwe is vying for a non-permanent seat on the United Nations Security Council. May you please outline progress made so far in lobbying for support?
A: Zimbabwe is bidding to be a non-permanent member of the United Nations Security Council for the period 2027 to 2028.
Elections for the bid are scheduled to take place in 2026.
All the 16 countries in the Southern African Development Community have endorsed Zimbabwe and we are also now the African Union candidate.
The African Union endorsed Zimbabwe during the 37th Ordinary Session of Heads of State and Government of the African Union in February 2024.
We are now taking our campaign outside Africa and the results are encouraging.
Zimbabwe enjoys support from SADC countries, the African Union, the Group of 77 and China, the Non-Aligned Movement and the United Nations.
Zimbabwe has been supported in its call for the immediate and unconditional removal of sanctions and in the general call for states to desist from resorting to unilateral coercive measures.
Q: Zimbabwe is also on its way back into the Commonwealth group of nations. Can you outline the progress we have made in efforts to rejoin the group?
A: Zimbabwe’s bid to rejoin the Commonwealth is at the final stage of the readmission process.
We have had three assessment missions from the organisation.
In addition, His Excellency, the President, has met Baroness Patricia Scotland on a number of occasions, the most recent being in January 2024, in Kampala, Uganda, on the margins of the 19th Non-Aligned Movement Summit, and there were positive outcomes with regard to the readmission of Zimbabwe into the Commonwealth.
I wish to reiterate that Zimbabwe is on a positive trajectory in our bid to rejoin the Commonwealth.
There are still a few outstanding issues that are being attended to.
We have maintained our strategy of engaging the secretariat and, to that end, a delegation that was led by the Attorney-General, Mrs Virginia Mabiza, met Baroness Scotland, in London, in April 2024, in a bid to clarify what the secretariat termed issues of concern raised by some of the member states.
Q: Zimbabwe has a significant external debt and arrears burden. As the Government, are you satisfied with the progress you have made in the arrears clearance and debt resolution talks being led by Mozambique’s former President Joaquim Chissano and African Development Bank (AfDB) President Akinwumi Adesina?
A: The Government of Zimbabwe has made steady progress and added impetus to the process.
The following are some of the positive outcomes of the dialogue so far:
- His Excellency, the President, put on hold the signing of the Private Voluntary Organisation Amendment Bill and called for wider multi-stakeholder consultations, including inputs from civil society organisations;
- In June 2023, the Government assumed all foreign currency-denominated liabilities of the Reserve Bank of Zimbabwe, amounting to US$1,8 billion;
- Under the Rule of Law Index, Zimbabwe improved to a score of 0.4, and is ranked 123 out of 142.
Zimbabwe’s rank rose by three, as it was ranked 126 previously;
- Zimbabwe’s score in 2018 was 0.37, so there has been steady progress; and
- US$55 million has been allocated in the 2024 National Budget towards compensation for the former farmers’ initiative, with US$35 million slated for the Global Compensation Deed and US$20 million for BIPPAs (Bilateral Investment Promotion and Protection Agreements).
As you may be aware, the Structured Dialogue Platform High-Level facilitator, former President Chissano, led a delegation on a consultative visit to Zimbabwe from April 7 to 10, 2024.
During former President Chissano’s consultative visit, he met with the President, Dr Mnangagwa, ministers and ZANU PF senior officials.
The outcome of this consultative visit was a reiteration of the Government’s commitment to pursue the dialogue.
After his consultative visit to Zimbabwe, former President Chissano also embarked on a consultative visit to Washington D.C. to engage with international partners, and I strongly believe there will be positive feedback.
Zimbabwe is grateful for the work and assistance that former President Chissano and AfDB President Adesina have rendered.
Online Reporter