Zim/Pakistan seek to grow trade and investment

THE Zimbabwe National Chamber of Commerce (ZNCC) will sign a Memorandum of Understanding with the Federation of Chambers of Commerce and Industry of Pakistan to boost trade and investment in line with aspirations of the National Development Strategy 1 (NDS 1 2020-2025).

The five-year economic development policy launched in 2021 spells out policies, institutional reforms, and national development priorities needed to achieve the national vision of an empowered upper middle-income economy by 2030.

Under Vision 2030, the Second Republic led by President Mnangagwa, targets to increase the value of exports to US$14 billion from US$7,2 billion presently.

Although Zimbabwe and the Asian country enjoy cordial bilateral relations, trade between the two countries remains low with official total trade figures at US$30,8 million in the fiscal year 2021-2022.

Pakistan’s exports to Africa stood US$1,56 billion in 2022 while imported goods from the continent valued at US$5,6 billion

During the same under review, Zimbabwe’s exports to Pakistan amounted to US$21,52 million while the Southern African country imported goods worth US$9,28 million.

In an interview ahead of the second Edition of the Engineering and Healthcare Show that begins in Lahore, Pakistan today, ZNCC president Mike Kamungeremu said together with at least 10 local companies, ZNCC would be attending the event to tell the Zimbabwean story in terms of the vast trade and investment opportunities in the country. Representing the local businesspeople, Mr Kamungeremu said he would also sign an MoU with the Federation of Chambers of Commerce and Industry of Pakistan to increase cooperation between businesspeople from the two countries.

“So, because they are having this engineering and healthcare show running from the 23rd to the 25th of February 2023, we are also taking advantage to sign this agreement which will basically be an agreement to work together as chambers of commerce, an agreement to share trade information and to embark on trade missions.

“We expect business delegations from Zimbabwe going to Pakistan and vice versa, the whole idea being to increase the volume of trade between the two countries.

“Bilateral relations are already very strong between Zimbabwe and Pakistan, what we need to do from the business side is to take it to another level. Businesspeople from Pakistan are doing very well in terms of manufacturing and the expectation is that our businesspeople may get equipment and machinery from that country,” he said.

“At the same time, we also expect to create a market for our local products in Pakistan, so the MoU must then pave the way for increasing cooperation.

“We also anticipate that the same way they have invested in their country, there should be some willing investors who want to come to Zimbabwe and all that should be done through the spirit of that MoU.”

The ZNCC president said Pakistan has invested so much into manufacturing and thus at this year’s Engineering and Healthcare Show, a number of businesses from different sectors including those in manufacturing of pharmaceuticals and equipment for the medical field will be exhibiting their products.

The show, which has attracted 46 countries, about 170 exhibitors and 325 foreign delegates will see business-to-business meetings being held from which the Zimbabwe delegation hopes to strike business deals.

“As I am going to this show and also the signing of the MoU, we are carrying the thrust of the Government that ‘Zimbabwe is open for business’, so what we need is just to go there and take advantage of the show.

“We know industry needs to retool and we’ll see if industry will be able to get the kind of machinery that’s needed for our industry as well as securing markets for our products.

“We also know there are quite a number of products that these guys need from Zimbabwe; when we go there, the idea is we tell the Zimbabwean story in terms of the opportunities that are here and the kind of products that we are able to also supply to Pakistan,” said Mr Kamungeremu.

He added that some businesses from that Asian country have already indicated keen interest to import cotton and tobacco from Zimbabwe.

He expressed optimism that the signing of the MoU between ZNCC and the Federation of Chambers of Commerce and Industry of Pakistan will increase the flow of trade between the two countries.

“The statistics that we have seen from ZimTrade, the volume of trade is still very low and we expect that after this visit, we will see more businesses from Zimbabwe dealing with businesses from Pakistan for the betterment of the two countries.

“And also if you check the top 10 countries that trade with Zimbabwe, Pakistan is not part of the list.”

Commenting on why trade between Zimbabwe and Pakistan was low, he said this was largely on account that there was no bilateral trade agreement between the two countries at the moment.

Secondly, Mr Kamungeremu said there was no contact between the business member organisations from Zimbabwe and those that represent business in Pakistan.

“That’s also one of the reasons why we are going there and also signing the MoU.

“Our local business people selling products from Pakistan are getting them through middlemen in Dubai or South Africa. And when it comes to trade numbers with Zimbabwe, they are recorded as South Africa or UAE (United Arab Emirates), but originally those products are from Pakistan.

“Establishing a direct link with manufacturers of the products helps possibly reduce the cost levels by cutting down middlemen,” he said.-herald