Diplomats from some of Zimbabwe’s long-time critics this week offered a rare vote of confidence in the country’s economic prospects, signalling a tentative shift in sentiment after years of strained relations.
The remarks came as European governments and businesses said they were encouraged by what they said were signs of improving macro-economic stability.
However, the envoys said sustained capital inflows will depend on Harare delivering on long-promised structural reforms.
Authorities say improving stability — after years of currency volatility and runaway inflation — is beginning to reposition Zimbabwe as a potential investment destination, particularly in mining, agriculture and infrastructure.
Germany’s ambassador to Zimbabwe, Christoph Retzlaff, said recent gains had placed the country back on investors’ radar, though significant constraints remain.
“Zimbabwe has seen some good macroeconomic progress in the last couple of months. That is encouraging,” Retzlaff said.
He noted that Germany — Europe’s largest economy — could become a key trade and investment partner if conditions improve.
As global geopolitical tensions force companies to reconfigure supply chains, African economies such as Zimbabwe could benefit.
“German companies are looking to diversify their production and supply chains. That offers opportunities for African countries,” he said.
But Retzlaff warned that unlocking meaningful investment would require policy consistency.
“We need predictability, transparency, less red tape and political stability. These are key factors to improve economic relations.”
A German mining-focused market exploration mission is expected in August, underlining growing interest in Zimbabwe’s resource sector.
Italy is also seeking to deepen its footprint, building on existing investments in infrastructure and manufacturing.
Italian ambassador to Zimbabwe Giuseppe Giacalone said Italian firms were already embedded in major projects and saw room for expansion.
“My impression is very positive. WeBuild Group has built many dams in the country, starting from Kariba and now working on another major project in the south,” he said.
He identified agriculture, technology, infrastructure and education as key sectors for future co-operation, adding that his role was to strengthen commercial ties between the two countries.
The renewed European interest comes as trade between Zimbabwe and the European Union (EU) continues to deepen under the Economic Partnership Agreement, in force since 2012.
The deal grants Zimbabwe duty-free and quota-free access to the EU’s 27-member market, helping the bloc remain the country’s largest export destination for horticultural products such as blueberries, citrus and peas.
EU ambassador Katrin Hagemann said the partnership was already delivering measurable gains.
“With trade reaching US$919 million last year, we are closing in on the US$1 billion mark — driving jobs and growth,” Hagemann said.
“It is a win-win relationship: Zimbabwean producers are gaining ground in the European market, while European technology is strengthening local competitiveness and value addition.”
Despite the progress, exports remain concentrated among a relatively small base of about 200 companies.
To broaden participation, the EU is rolling out a €7,8 million horticulture support programme, alongside wider financing initiatives.
Over the past five years, institutions such as the European Investment Bank and Proparco have channelled more than US$100 million into Zimbabwe’s banking sector.
These interventions fall under the EU’s Global Gateway strategy, which supports infrastructure, trade and sustainable development projects, including the rehabilitation of Kariba Dam.-newsday
