THE Zimbabwean government has pleaded with South Africa to
help revive its collapsing economy to avoid a contagion effect.
Addressing a ministerial meeting of the third session of
the Zimbabwe-South Africa Bi-National Commission (BNC) in Harare yesterday,
Foreign Affairs and International Trade minister Sibusiso Moyo said a weaker
Zimbabwe was a threat to South Africa’s economy.
“A stronger Zimbabwe is one that is capacitated to
effectively partner South Africa in shouldering the burden of leading the southern
African development region towards prosperity. It is for this reason that the
Republic of South Africa, should find it in its interest to create an
environment and conditions that stimulate a quick turnaround of Zimbabwe’s
economy,” Moyo said.
The ministerial meeting was a precursor to today’s BNC
Heads of States summit between President Emmerson Mnangagwa and his South
African counterpart, Cyril Ramaphosa who jetted into Harare last night.
Zimbabwe last month held a similar indaba with Botswana and
Harare took its investment plea to Gaborone, with the neighbouring country
pledging a $95 million business support package.
Moyo said once Zimbabwe’s economy starts to function well,
South Africa would be the biggest winner.
“Furthermore, it goes without saying that a stronger
Zimbabwe offers an expanded market for South African manufactured products,”
Moyo said.
The minister said SA investors could make use of special
economic zones (SEZs) that offer free importation of capital equipment and tax variables
in Zimbabwe.
“I am inviting South African businesses to take advantage
of the varied incentives provided for by SEZs in Zimbabwe. These zones offer
incentives that include, among others, duty-free importation of capital
equipment and tax variables. The SEZs that we aim to set up in Zimbabwe’s 10
provinces offer opportunities to create cross-border value tax through
partnerships between Zimbabwean companies and South African investors in areas
that include mining and engineering, leather, textile and clothing,” he said.
“A prosperous Zimbabwe makes for a prosperous South Africa
and vice-versa. As we continue to break new ground within the framework of our
bilateral co-operation, I am delighted to note that we have registered tangible
progress delivered from our agreements and memorandum of understanding (MOUs)
which forms building blocks of our Bi-National Commission.”
Moyo said trade was the major driver for growth. “Delivering concrete results for the benefit of our people
and countries remains our paramount objective bestowed upon us by our leaders
and by history. Trade is the major driver for the growth of our two economies.
For that reason it has become a major focus of co-operation between our
countries,” Moyo said.
The ministerial indaba was co-chaired by South Africa
International Relations minister Lindiwe Sisulu, who said her country was ready
to support Zimbabwe economically and was eager to fulfil all MOUs that were
signed since 2015 when the BNC was launched. Newsday
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