In a landmark move aimed at enhancing trade relations between Zimbabwe and the European Union, EU Ambassador to Zimbabwe, Jobst Von Kirchmann, declared that Zimbabwean companies can now export any product to the bloc duty-free.
This initiative
was announced at the Zimbabwe International Trade Fair (ZITF) in Bulawayo last
week, where Ambassador Von Kirchmann spoke about the unique advantages
available to local businesses.
The
announcement comes at a time when the world was grappling with tariffs that
were imposed by United States President Donald Trump recently, and are viewed
in some quarters as barriers to trade.
“We have been
participating in ZITF for the last two or three years, which signifies our
long-standing and reliable commitment to the Zimbabwean people,” said
Ambassador Von Kirchmann.
“Amid global
discussions on trade barriers, we are proud to say that any Zimbabwean company
can export any product to the EU without tariffs or duties,” he noted.
While some EU
imports to Zimbabwe are still subject to duties, this favourable export
condition provides a significant opportunity for local businesses to thrive.
Ambassador Von
Kirchmann also reported a substantial increase in European foreign direct
investment (FDI) in Zimbabwe, revealing that FDI from the EU has tripled in
recent years.
“The EU and its
member states are investing over 500 million euros into sustainable agriculture
and women empowerment,” he said.
This includes
initiatives aimed at providing farmers with drought-resistant crops and
enhancing livelihoods in vulnerable regions.
Despite the
positive export conditions, the ambassador acknowledged a trade imbalance
favouring Zimbabwe, with the country exporting more to the EU than it imports.
“Zimbabwe is
exporting more to the EU than importing, and we are fine with that,” he
clarified.
The primary
exports from Zimbabwe to the EU are horticultural products, with the EU being a
major buyer of these goods.
Ambassador Von
Kirchmann highlighted the fact that the EU buys over 40 percent of Zimbabwe’s
horticultural products, making it the largest buyer in this sector.
With an annual
trade volume exceeding 700 million euros, the EU ranks as Zimbabwe’s
fourth-largest trading partner.
One of the key
challenges identified by Ambassador Von Kirchmann is the lack of awareness
among Zimbabwean companies regarding their duty-free access to the European
market.
“Every time I
speak to companies, I find many are unaware that they can export to the EU
duty-free. I hope that through media outreach, more companies will learn about
this fantastic opportunity,” he said.
Focusing on
empowering the private sector as a driver of economic growth, the EU has
launched various initiatives, including a recent €60 million lending facility
through the European Investment Bank.
This funding
aims to provide long-term loans at low-interest rates to local companies,
fostering industrialization and job creation.
Looking ahead,
Ambassador Von Kirchmann announced the inaugural EU-Zimbabwe Business Forum,
scheduled for May 20 to 22 in Harare.
This forum aims
to foster partnerships and joint ventures between European and Zimbabwean
companies, particularly in key sectors.
“We have
identified value chains where Zimbabwe has a genuine interest and where Europe
also sees potential,” he said.
Key sectors of focus include agriculture, horticulture, and agro-processing, with specific interests in products like berries, citrus, and macadamia nuts.
The forum will
also explore opportunities in renewable energy and mining, aiming to support
the beneficiation of the mining sector rather than just primary extraction.
Herald
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