adminBrighton Gumbo, Chronicle Reporter
ZIMBABWE and Botswana are discussing possibilities of inking a strategic industrial partnership aimed at improving domestic production and curbing imports.
A business delegation led by the Confederation of Zimbabwe Industries (CZI) visited the neighbouring country last week to negotiate partnership opportunities with businesses in that country.
CZI president Busisa Moyo yesterday told The Chronicle the proposed partnership would also buttress the regional industrialisation agenda and its broader economic ideals.
He said the engagement also sought to explore how Zimbabwe and Botswana can jointly participate in the initiative in a mutually beneficial manner.
“The partnerships are structured in such a way that semi-finished goods are exported from Zimbabwe and finished or packed in Botswana. We call this regional value chains,” Moyo said.
“It could be juice concentrate, soap, chips, crude cotton oil, CMT for textiles. This way we’ve a win-win situation where Zimbabwe increases its exports, which creates jobs in the value and Botswana also has assembly or finishing plants and factories, which also creates jobs in Botswana.”
At the moment both countries are importing finished goods mainly from South Africa resulting in jobs being exported to that country.
“Both Botswana and Zimbabwe import over 40 percent, which is roughly $3 billion each, of their goods from South Africa and we’ve agreed that this dependence should be progressively reduced and trade with other regional players be intentionally increased,” Moyo said.
He observed the Botswana government had just issued a stimulus package for its citizens, in particular the youth, which emphasises the need for partnerships.
Moyo said his team met with the Botswana Business formerly known as Botswana Confederation of Commerce, Industry and Employers (BOCCIM) in Gaborone, Botswana.
He said among the discussions was an enquiry on the P500 million ($70 million) line of credit promised by Botswana to Zimbabwean businesses in 2009.
“Yes we inquired on this amount and we were advised that there were government to government guarantees that were required for the funds to flow,” said Moyo.
“These guarantees have to be mutually beneficial. This fund and other funds could be activated if there are specific bankable transactions on the table, that’s what we’re focussing on compelling transactions.”
He said from the meeting Botswana’s main interest was on collaboration in the beef, leather and goat meat sectors as well as other industrially manufactured products such as soap and detergents.
“There are two significant transactions in the beef and feedlot sector for follow up that are in the pipeline,” Moyo said.
He said CZI also held meetings with the Botswana Retail Association with a view to supplying commodities into Botswana by Zimbabwe companies in particular north of Botswana.
“Meetings were also held with Botswana Chamber of Mines who’re looking for engineering companies to provide mining support services by setting up partnerships in Botswana,” Moyo said.
He said Zimbabwe will be preparing for a reverse trip where members of business community in Botswana would come into the country in February next year to follow up on specific transactions.
Moyo encouraged manufacturing companies to join CZI to take advantage of match making and private sector opportunities in Botswana and other countries in Sadc.
Bongani Ndlovu
Online Reporter