Online Reporter
Rutendo Nyeve, [email protected]
A visiting South African business delegation has commended Zimbabwe’s symbiotic economic relationship with their country and called for full operationalisation of the African Continental Free Trade Area (AfCFTA) to optimise trade on the continent.
The calls emerged during the recent Zimbabwe National Chamber of Commerce (ZNCC) Annual Congress held in Victoria Falls.
Dr Albert Jeleni, president of the Limpopo Chamber of Commerce and Industry highlighted the interconnectedness of the two economies.
He argued that borders cannot and should not divide what is fundamentally a shared economic region.
“Currently, we are dividing our economy by our borders, as if you can do that. That is actually impossible, because the economy cannot be divided by the border itself,” said Dr Jeleni.
The Limpopo business leader underscored the significant role Zimbabwean skills have played in the South African economy, particularly in the property and manufacturing sectors.
“We have received a number of skilled persons from Zimbabwe. One area that benefited a lot is the property market,” he said.
“Most of the people that have been building in South Africa, it’s people who came with skills from Zimbabwe and Zimbabwe has built those skills over many years, which South Africa did not have.”
However, Dr Jeleni lamented the bureaucratic impediments at the border that stifle the potential of this economic corridor.
“Now, where we had constraint, it’s when goods now, which are being manufactured from South Africa, had to move to Zimbabwe, or some of the goods from Zimbabwe to South Africa, there was a red tape at the border,” he said.
The official said the AfCFTA is the solution to these challenges, and called for a corridor-based approach rather than a divisive border mentality.
“What should be happening between South Africa in terms of Limpopo and Zimbabwe is that we should be seeing a number of factories that are being set up in the corridor.
“It must become a corridor such that most of the exits should actually be Zambia rather than saying that it’s South Africa and Zimbabwe,” he said.
Dr Jeleni further noted that Zimbabwe stands to benefit from South Africa serving as a training ground for skilled labour.
“South Africa became a training ground for most of the people who are in Zimbabwe,” he said, adding that with cheaper setup costs in Zimbabwe, companies are increasingly looking northward.
He suggested that spin over investments rather than full relocations would benefit both nations, fostering a corridor of industrial development.
Echoing the call for integration, Mrs Rudo Faranisi, chief director of economic cooperation, International Trade, and Diaspora in the Ministry of Foreign Affairs and International Trade, described the AfCFTA as a guiding framework.
“AfCFTA is our Bible for the continent. We have industrialisation, the export growth, new markets, job creation, and so forth. Value chains in the region, value chains on the continent, value chains with our partners out there,” she said.
Mrs Faranisi stressed that Zimbabwe is aligned with the AfCFTA’s goals, guided by Vision 2030 and the National Development Strategy.
“I hope you do appreciate that there is so much dynamism in this global world of ours. If we don’t take action, we will be left behind,” she warned.
The European Union, a key partner in the initiative, threw its weight behind the agreement.
“The African free trade, continental free trade agreement, is a very positive step. We’ve supported it from the beginning. Regional integration is in our own DNA. It’s how the European union (EU) was built,” said Ms Katrin Hagemann, Ambassador of the European union delegation to Zimbabwe.
She announced the EU’s continued support for Zimbabwe’s economic integration, including programmes to build value chains in the horticultural sector.
“We are convinced that that will also happen for Africa,” she added, noting that the EU is working with Zimbabwe to ensure compliance with international standards to boost exports.
“The EU remains Zimbabwe’s largest market for horticultural produce, accounting for over 40 percent of exports,” she said.
“Despite Zimbabwe maintaining a positive trade balance of US$328 million under the EPA framework, only about 200 local companies are currently exporting, signalling significant room for growth.”
The congress, themed: “From Resilience to Competitiveness: Charting a New Path to Sustainable Industrial Growth”, brought together business leaders and policymakers.
