adminThis latest meeting comes as both countries have admitted there is need to help Zimbabwe value add on its largely raw material exports to India to increase returns as the trade balance is also hugely tipped in the latter’s favour.
Senior officials from different trade and commerce-related ministries of the two countries met in Harare yesterday to deliberate on various areas of possible cooperation and mutual trade benefits.
Yesterday’s meeting laid the groundwork before the two countries’ ministers of trade and commerce meet today for the final position on what course and shape the trade co-operation framework would take.
Secretary for Industry and Commerce Ms Abigail Shoniwa, who attended the meeting, yesterday said the value adding to products from Zimbabwe could help the country to get more returns from its exports to India.
“It is Zimbabwe’s desire that there is mutual co-operation and that we ensure more investment from India to value add in the number of sectors where we believe there is opportunity,” said Ms Shoniwa.
Talks to enhance Zim-India trade follow the realisation that while the two countries’ socio-political relations have continued to improve exponentially, trade between them has remained somewhat on the downside.
India’s additional secretary in the Ministry of Commerce, Industry and Textile Mr D. S. Dhesi said yesterday that while India’s trade with Africa totalled US$70 billion, Zimbabwe’s share of that came at mere US$166 million of which it exported only US$33 million.
“The trade balance has continued to be very much in favour of India and the gap between imports and exports is quite significant. If we look at India’s trade with other (African) countries, trade with Zimbabwe is comparatively less. In 2012, trade with Africa was US$70 billion,” said Mr Dhesi.
He said the US$166 million trade value between India and Zimbabwe was low. But he pointed out that the greatest potential to change this scenario lay in items with more latitude for value addition.
Trade between the two countries has largely been concentrated in such products as pharmaceuticals, engineering, electricals and raw materials.
Focus on new ways of co-operation will seek to ensure that Zimbabwe moves from exporting largely raw materials to valued-added goods.
This also comes amid concerns that there has been a sharp increase in exports of unprocessed material to India in the form of rough diamonds, which increased sharply, particularly last year.
Mr Dhesi said India was committed to helping Zimbabwe develop its small- and medium-enterprises and food processing capacity. Zimbabwe has unlimited potential to grow in both these areas.
Apart from growing trade ties with Zimbabwe, through some of its parastatals India has been helping Southern African country with expertise in such areas as hydro-energy, telecommunications and diamond processing – among others.
Officials from the two countries said the third session of the India-Zimbabwe trade joint committee meeting would look at new areas of co-operation in the quest to enhance mutual trade benefits.
Several meetings have been held between ministers and officials from the two countries, which have shown clear determination to promote trade and their belief in the potential that exists for trade growth.
In yet another strong demonstration of their commitment to grow trade, the two countries last year signed a Bilateral Trade Promotion and Protection Agreement.
Zimbabwe has a lot to learn and benefit from trade and economic co-operation with India, the world’s third biggest economy behind the US and China and one of the world’s fastest growing economies.
Online Reporter