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Business Reporter
National trade promotion body, ZimTrade, along with the trade and investment promotion bodies in Zimbabwe and Zambia recently signed a tripartite memorandum of understanding (MoU) to promote economic ties and enhance cooperation.
The tripartite MoU between ZimTrade, the Zimbabwe Investment & Development Agency (ZIDA) and the Zambia Development Agency (ZDA), was signed on the sidelines of the 8th session of the Zimbabwe – Zambia Joint Permanent Commission of Cooperation (JPCC).
The agreement seeks to foster trade and investment promotion, capacity building, business linkages and referrals as well as research activities between Zimbabwe and Zambia.
Zimbabwe’s exports to Zambia grew by 89 percent, from US$75 million in 2018 to US$ 142 million in 2023.
Total trade between Zimbabwe and Zambia grew by 67 percent from US$213 million in 2018 to US$356 million in 2022.
During the period, the balance of trade has been in favour of Zambia.
It is expected that the implementation of the MoU will reduce the negative balance of trade between the two countries.
Zimbabwe has been exporting mineral fuels, iron and steel products and articles of paper among many other products, to Zambia while importing cereals, beverages and ceramic products from its neighbour.
There, however, is immense potential for further growth in trade and investment and collaboration between the two countries, given Zambia is one of Harare’s major trade partners.
In a bid to strengthen trade and investment ties, the tripartite MoU was signed among the trade and investment promotion agencies of Zimbabwe and Zambia, namely ZimTrade, ZIDA and ZDA.
The main areas of cooperation among other issues include trade and investment promotion between Zimbabwean and Zambia businesses.
This would entail trade missions, investment forums, and business matchmaking events to connect potential investors and traders from both countries;
Further, initiatives would include capacity building through the enhancement of the capacity of businesses, entrepreneurs and relevant stakeholders, which is crucial for sustainable economic development.
Through this partnership, both countries aim to provide training, workshops and seminars to build the skills and knowledge necessary to thrive in the global market;
The MoU emphasises the importance of fostering strong business linkages and referrals between Zimbabwean and Zambian enterprises.
This will be done by facilitating introductions and collaborations among businesses from both countries where they can leverage each other’s strengths and expand their market reach as well as research activities and information sharing.
This would be vital in identifying market trends, opportunities, and challenges, among other important areas.
The tripartite agreement includes provisions for joint research projects and data sharing,
The MoU is expected to boost economic growth by increasing trade and investment, creating jobs, and fostering development. Additionally, the expectation is that the MoU will enhance regional integration in Southern Africa and improve the competitiveness of businesses in Zimbabwe and Zambia.
Additionally, it will increase investor confidence by signalling a commitment to a business-friendly environment in both countries.
Online Reporter