CO-OPERATION Zimbabwe and India is set to boost trade as indicated by recent trade data which has shown an improvement since the last few years.
Speaking during the Zimbabwe-India Hybrid Interactive Seminar on Enhancing Trade and Investment Co-operation, Industry and Commerce deputy minister Raji Modi said co-operation between the two countries sought to establish a strong partnership that would facilitate economic development through improved trade opportunities.
“Building on our shared history and common aspirations, we seek to enhance co-operation with India across key areas of mutual interest, including trade and investment, security, education, technology, sustainable development and arts and culture,” he said.
“Our two countries have always been active supporters of south-south co-operation.
“Zimbabwe appreciates India for its support to Zimbabwe in various international and multilateral fora, including in the United Nations.”
Modi added that currently, relations between the two countries had seen Indian investors investing more than US$600 million in various industries, creating more than 15 000 direct and indirect jobs for our people.
“Our bilateral trade is also increasing gradually, touching US$260 million during the last financial year.
“Our national development journey also recognises the importance of global partnerships. Under the engagement and re-engagement policy, Zimbabwe is working to strengthen relations with all nations and international institutions.
“Co-operation with countries such as India supports this pillar by opening new investment opportunities, expanding trade and building strong people-to-people and business-to-business connections.
“This collaborative approach ensures Zimbabwe remains open for business, welcoming investors and partners who share our goal of sustainable economic development.”
Zimbabwe is home to around 10 000 persons of Indian origin and this forms a strong foundation for the two countries to share dynamic, strong and cordial political relations.
Indian ambassador to Zimbabwe, Bramha Kumar, said the two countries should take advantage of bilateral relationships that exist between the two countries.
He said Vice-President Constantino Chiwenga had always extended “tremendous” support “to further deepen our already strong bilateral economic relations”, which he said was reflected through his visits to India almost every year to participate in the CII India-Africa Business Forum.
“Through his efforts, we have seen many new investors from Indians employing their capital to aid the Zimbabwean economy.
“Similarly, bilateral trade is on the rise and for the first time, it has crossed its usual range to touch US$250 million, wherein Zimbabwe exports to India has reached around US$46 million.
“These figures are encouraging as it shows an upward trajectory in India-Zimbabwe economic relations.”
Over the years, India has emerged as a key driver of economic growth and global integration with a diversified export basket and strategic import channels and its engagement with global commerce has helped to expand its bilateral and multilateral trade partnerships.
According to latest data, India is moving towards becoming a US$5 trillion economy and this is a good opportunity for Zimbabwean business to tap into the Indian market, which has more than 1,4 billion people, the highest population in the world.
Export promotion agency ZimTrade export development manager Tatenda Marume said the agency would continue to strengthen both business-to-business and business-to-government platforms, ensuring that opportunities conceived through engagement such as the India-Africa Conclave are effectively pursued and are seamless.
“We intend to facilitate business linkages, deliver market linkages, support export development and work with government agencies to address any trade bottlenecks that may affect trade between Zimbabwe and India,” Marume said.
“Our goal is to ensure seamless interaction between Zimbabwean and Indian business as we collectively unlock new pathways for growth, innovation and prosperity.
“So India’s import patterns present significant room for Zimbabwean agricultural exports to grow. In 2023, India imported US$1,5 billion in sugar compared to Zimbabwe’s US$58 million in exports.”
He added: “In the tea, coffee and spice category, India’s exports totalled US$1,1 billion, while Zimbabwe exported US$22,6 million. In fruits, which Zimbabwe is good at producing, India imported US$4 billion, while Zimbabwe supplied over US$30 million in citrus, avocados and nuts.
“These trends demonstrate the strong potential for expansion and deeper collaboration in value-added products, specialties, premium coffee and horticultural products.”
Marume urged Indian investors to take advantage of the co-operation and invest in renewable energy systems, irrigation equipment and agro-processing machinery, which is critical to the country’s industrial and rural development agenda.
He said investors, who came to Zimbabwe, should understand standard requirements at the same time reminding Zimbabwe exporters to India of the same.
“Exporters must meet India’s sanitary and private sanitary requirements, which include labelling, packaging and certification standards.
“These rules are essential for safeguarding quality consumer safety. But when we look at the aspirations that we have, we hope that one day, we are going to have a preferential trade arrangement with India, where we have treaty and quota concessions between our two countries. This can be done bilaterally or it can be done as part of a multilateral arrangement.” -newsda
