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Noble Ncube, Business Reporter
ZIMBABWE and South Africa will protect investment interests that exist between the two countries, a move that serves to cement the economic and political ties that bind the two economies.
Speaking during the business seminar held at the Zimbabwe International Trade Fair last week, South African deputy minister of Industry and Trade, Mr Mzwandile Masina who was leading a South African business delegation which was in the country, said it was imperative to protect the investors’ interest from both sides.
There are more than a dozen large South African companies operating in Zimbabwe among them Pretoria Portland Cement, Impala Platinum which owns Zimplats, Edgars, Tongaat-Hulett, Pick n Pay, Old Mutual and Multi-Choice among others.
South Africa is also home to a number of Zimbabwean companies although some are still in their budding stage. Mr Masina said it was important that the two countries maintain a good relationship to boost trade.
“We are happy to be holding this business meeting in the continent’s biggest venue for trade fair display. There is value in exchanging business ideas and offering opportunities to each other. We want to capitalise on our economic developments to have sustainable democracies in both our countries.
“As a result we will ensure that our investments will be protected by both Governments. We have seen many of our investments that have been protected here in Zimbabwe. The Zimbabwe that we have seen, from Harare to Bulawayo, is not the same like the one being portrayed by the media,” said Mr Masina.
His Zimbabwean counterpart, deputy minister of Industry and Commerce, Mrs Chiratidzo Mabuwa said Government was keen to protect South African investments in the country.
She said for the benefit of local community in form of job creation and economic development investors’ interests were important to protect.
“We need these investors to create employment and develop our economy. Their performance and endurance to keep in business shows that all is well. This should give investors the confidence as it signifies that foreign investors have nothing to worry about. South African investors are dotted all over the country, doing real business and we need more,” she said.
Mrs Mabuwa made reference to the existence of one of the cement making giants, Pretoria Portland Cement Zimbabwe, a subsidiary of Pretoria Cement Company. She said the company which injected more than $25 million in the past three years showed that it has confidence in the Zimbabwean economy and the company’s presence was enough evidence that foreign investments are protected and grow locally.
“The expansion of PPC in producing cement at affordable prices provides opportunities for investments in other areas such as real estate, dam and road construction among others. You may also wish to note that PPC Zimbabwe is one of the foreign owned companies that have complied with the Indigenisation and Empowerment Law,” she said.
Permanent Secretary in the Ministry of Macro-Economic Planning and Investment Promotion, Dr Desire Sibanda said investors’ interests were going to be protected in the country as guaranteed by the Bilateral Investment Promotion and Protection Agreement (Bippa), which both countries signed in 2010.
Ambassador of Zimbabwe to South Africa, Mr Isaac Moyo assured the investors that Zimbabwe will prefer to do business with South African investors than those from distant places.
“I can rest assure you that Zimbabwe will give first preference to South African investors than those from far places.
We want to restore the status of Zimbabwe-South Africa trade back to its glory times. We have to appreciate that our two governments have managed to maintain the peace and stability that is needed for business to thrive,” said Ambassador Moyo.
Between 2003 and 2015 South Africa invested R20 billion in Zimbabwe in the mining, agriculture, banking and retail sectors. The sixth industry and trade initiative brought 37 South African companies to Zimbabwe. Some of the businesspeople said they were also looking forward to come back for the Zimbabwe International Trade Fair.
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