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This came amid revelations that South African firms have ploughed about R10,7 billion in new investments in Zimbabwe since 2003, creating more than 2 000 jobs.
The South African Ambassador to Zimbabwe, Mr Vusi Mavimbela, was addressing delegates during an Investment and Trade Initiative seminar, attended by SA firms, local businesses and other stakeholders,
He said there was no need to fear Zimbabwe’s indigenisation laws as his own country had similar empowerment policies.
SA Deputy Minister of Industry and Trade Ms Elizabeth Thabethe is leading a 46-member business delegation due to attend another conference in Bulawayo in search of trade and investment opportunities.
Ambassador Mavimbela said many SA firms had inquired about Zimbabwe’s equity laws prior to the
Zimbabwe Investments and Trade conference held in that country early this month.
Foreign-owned companies operating in Zimbabwe are compelled in terms of the Indigenisation and Empowerment Act to own a maximum of 49 percent, but the minister responsible can approve variations, if necessary.
“What you have to do,” he said, “is to link up with people interested in areas you want to invest in and discuss terms of engagement on how you are going to move forward. When you discuss, you will always find a solution.”
“It is easier if it is your first time to come to Zimbabwe because you need partnership. So, you should not be scared of that (indigenisation and economic empowerment laws.”
SA companies currently operating in Zimbabwe include Implats and Aquarius (mining), Old Mutual (insurance and banking), Standard Bank, Nedbank (banking), PPC (cement), Tongaat Hullet (agriculture), among many others.
Trade between the two countries stood at R17,5 billion in 2011. Of that, South Africa exported R14,5 billion capital equipment, raw materials and finished goods.
In return Zimbabwe exports totalled R2,9 billion, mainly ores, cotton, minerals and tobacco.
Zimbabwe was last year ranked as South Africa’s 11th biggest export destination. About 40 percent of Zimbabwe’s exports go to South Africa while about 60 percent imports originate from there.
Deputy Minister Thabethe said South Africa was committed to helping Zimbabwe’s economic recovery and growth. But she pointed out the need to review the investments dispute resolution mechanism framework between the two countries.
“Besides our geographical proximity, our countries share a long and common history of mutual ties in politics, economics and share socio-culture. We therefore
share a sense of kinship with the people of Zimbabwe, that forms a solid basis for strengthening of business, (investment and trade) ties,” she said.
South Africa and Zimbabwe signed a bilateral investment promotion and protection agreement in 2009.
A memorandum on the operationalisation of the investment promotion and protection accord was recently adopted.
Speaking at the seminar, Economic Planning and Investment Promotion Deputy Minister Samuel Undenge said Zimbabwe had many investment opportunities as spelt out in its new economic policy — the Medium Term Plan.
“The world is moving towards regional integration,” he said. “South Africa cannot succeed when Zimbabwe has not succeeded. Our (economic) fate is tied together.
As a region, we need to work together.”
Deputy Minister Undenge called on SA firms to consider opportunities in mining, SME partnerships (sourcing and sub-contracting), agro-processing, textiles, tourism, infrastructure and to take advantage of the country’s high literacy rate.
He said Zimbabwe was now a destination of choice for foreign investment due to its high growth rate, lowest inflation in the region and continuous efforts at improving the economic and business environment.
Online Reporter