ZNCC, KCCI ink MoU to boost trade, investments

The Zimbabwe National Chamber of Commerce (ZNCC) and the Korean Chamber of Commerce and Industry (KCCI) on Tuesday signed a Memorandum of understanding (MoU) that among other things, seeks to promote the development of trade and economic relations between Zimbabwe and South Korean businesses.

The ZNNC was represented by its president, Mr Mike Kamungeremu, during the signing ceremony, while Mr Lee Seong Woo, vice president of KCCI, signed on behalf of the South Korean organisation at a ceremony held in Seoul.

“The Korea Chamber of Commerce and Industry and the Zimbabwe National Chamber of Commerce …have agreed to sign an MoU.

Together, the parties enter this MoU with the desire to promote the development of trade and economic relations between (South) Korea and Zimbabwe and taking into consideration the similarity of the objectives in terms of promoting trade, industry, and investment while collaboratively representing the interests of their respective business communities,” reads the agreement in part.

The parties agreed that in accordance with the business laws of their respective countries and compliance with the existing agreements between Zimbabwe and South Korea, they shall develop strong institutional, trade, and business relationships to establish a sustainable mechanism of dialogue.

They also agreed to exchange information on general economic status, taxation, investment opportunities, trade policies and legislative changes of the respective countries and their impact on businesses to strengthen trade, technological and industrial cooperation. Reads the MoU in part: “The parties shall exchange publications and materials concerning economic development, foreign trade and investment policies of their respective countries.

The parties shall establish effective systemic consultation and cooperation between them, particularly on the trade and investment policy development. …Shall assist each other in organising business delegation and facilitating their business interest.”

In view of the size of South Korea economy with a Gross Domestic Product of close to US$2 trillion and on position 12 in the world, the ZNCC members are set to benefit more as the parties agreed to exchange information and assist each other in the organisation of or participation in international fairs, exhibitions and trade promotions to be held in the respective countries.

The pact is supposed to encourage members to attend. Zimbabwe organises trade showcases annually among them the Zimbabwe International Trade Fair and the Agriculture Show Society among others and according to this agreement, KCCI is supposed to encourage members to attend in their numbers to scout for more business opportunities in Zimbabwe.

The parties according to agreement are supposed to form a Joint Business Committee for the benefit of their respective business communities.

Benefits to Zimbabwean Businesses

Speaking to The Herald after the signing ceremony, Mr Kamungeremu said the agreement presented vast opportunities for Zimbabwean businesses.

Some of the opportunities, he said included increased trade and investment and the creation of new markets for local products and Korean investments in Zimbabwe.

“There will be;

Technology transfer and skills which could increase efficiency, productivity, and competitiveness, business networking opportunities and collaboration – get potential business partners,

Capacity building through training sessions and workshops for our members to enhance their business skills,” he said.

He said other benefits were;

Enhanced credibility and reputation, which could lead to more business opportunities, and economic growth for Zimbabwe through attracting foreign direct investment, creation of new jobs, and fostering innovation.

“South Korea has an advanced economy with a strong focus on technology, innovation, and manufacturing. So, opportunities exist in the following areas: minerals – Zimbabwe could export minerals that they need (here) in their manufacturing sector for example lithium. Agriculture sector; South Korea imports tobacco, flowers, fruits, and vegetables, which we have in abundance in Zimbabwe.

“In the sector of technology and innovation, there are opportunities for collaboration, partnerships, or investments in South Korea’s tech ecosystem.

“They are home to global brands like Samsung and LG Electronics. Other areas of interest are;

Textiles and apparel, tourism and hospitality, education and training, health and pharmaceuticals,” said Mr Kamungeremu.

President Mnangagwa and his delegation including business organisation representatives are here, attending the South Korea – Africa Summit being held under the theme: “The Future We Make Together: Shared Growth, Sustainability and Solidarity”.

The Zimbabwean delegation has already signed some agreements, including the one Minister of Foreign Affairs, Dr Fredrick Shava, signed with his South Korean counterpart, Mr Cho Tae-Yul on air services on the sidelines of the summit.

The air services agreement on cooperation and assistance between Zimbabwe and South Korea is a deal that will play a crucial role in shaping international aviation policy and fostering cooperation between Zimbabwe and South Korea.

“I am optimistic that signing the Memorandum of Understanding on Establishing a Framework on Trade and Investment Promotion (TIPF) between my ministry and the Ministry of Trade, Industry and Energy will strengthen cooperation in the trade sector,” said Dr Shava.

-herald