Zimbabwe/Rwanda, cementing economic relations

Zimbabwean and Rwandese officials at government and private sector levels, met in Harare last week, deliberated on critical economic issues and deals were penned.

And this pointed out to solid economic relations that are poised to become significant as the two countries strengthen ties driven by trade agencies – ZimTrade and the Rwanda Development Board.

Some agreements both at government and private sector levels have been signed between the two countries during trade investment conferences first held in Rwanda last year in September and in Zimbabwe from March 28 to April 1, 2022.

During the opening of the conference, President Emmerson Mnangagwa witnessed the signing of three memorandums of understanding between Zimbabwe and the Rwandan Government officials and the Private Sector Federation in the areas of commercial and economic relations, trade and investment and energy.

The trade agreements resonate with Zimbabwe’s five-year development plan, the National Development Strategy 1 (NDS1), which targets to realise sustainable economic growth, export diversity, value addition and employment creation.

Under the National Export Strategy (2019-2023), the government has put in place plans to grow exports to $7 billion by 2023 through stimulating growth in exports of goods and services for sustainable economic growth and development.

While officially opening the conference, President Mnangagwa said that Zimbabwes exports were critical for National Development Strategy 1 (NDS1 and the conference themeExplore, Invest, Exportresonates well with the widely accepted view that trade, investment and exports are key drivers of sustainable socio-economic development and growth.

“In our case, Zimbabwes exports are critical aspects of our National Development Strategy 1 and our quest to realise sustainable economic growth. In addition, investments and exports are also key in improving the delivery of quality services to the general populace, including health services, more so as we continue to fight emerging global pandemics such as Covid-19 among others,” he said.

President Mnangagwa added that the Government remained committed to creating an environment that is conducive for business, while realising the expansion of economic cooperation, trade and investment. He further said the Government was ready to welcome investors and global capital from across all countries of the world.

ZimTrade chief executive, Allan Majuru, on the outcome of the conference, said outside getting opportunities on trade and investment, the idea was also to learn best business practices, exchange ideas that are qualitative.

“Some of the business that is under consideration and tangible is where a joint venture company was visited and under the discussion, a deal was secured on supplying centre pivots to Rwanda covering over 70 000 hectares.

“There was a deal between ZESA and Rwanda Energy who signed four implementation agreements and in Masvingo, the Rwandese will set up solar plants to generate electricity,” he said.
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Mr Majuru added there are other potential businesses under discussion especially on the agri-business side such as horticulture and food processing and also building and construction material.

“At the moment the amount of deals signed by the private sector might look low at around US$5 million but as said, trade starts from low and when people are happy with the quality that turns into new business,” he said.

He added that a lot of Rwandese had also expressed interest in mining and there are negotiations and consultations that are currently underway with mining authorities.

“On the tourism side, there are discussions on-going to make sure that we market both destinations with one package.

“In the next two months, there will be an engagement of tour operators to benchmark and look at areas where we can leverage on service delivery.

“So this is to say if you go to Rwanda and stay in a 5- Star hotel, when you also come to Harare it should also be a 5 -Star,” said Mr Majuru.

He said potential investors from Rwanda visited areas of Chilli production and expressed interest to do business.

“But for all this to happen, we need finances and we were fortunate to have Mark Holtzman who is chairman of CBZ and Bank of Kigali National Bank and made representation of both banks in their respective countries.
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“So he said the banks are going to put in place financial structures to assist both countries in terms of investment and trade to make sure all the discussions that happened materialise,” he said.

Mr Majuru noted that going forward, the conference is now setting up as the Zimbabwe –
Rwanda business forum that will make sure outside these meetings, on the sidelines there are business to business (B2B) meetings happening and have the conferences to consolidate and solidify the issues.

Zephanie Niyonkuru, the Deputy CEO Rwanda Development Board (RDB), said if Zimbabwe taps into Rwanda, it would have automatically tapped into the regional market of more than 170 million people.

He said the two governments work together in many areas and they should ensure trade growth with increased private sector participation.

“We are looking to import processed foods from Zimbabwe with Zimbabweans wanting the same from Rwanda.

“Moving from goods, we also have a strong focus on the services sector. The government of Rwanda created Rwanda finance limited with a mandate to make Kigali a financial services centre and we hope Zimbabwe’s financial institutions should also come and register in Rwanda,” he said.
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Finance and Economic Development Minister, Professor Mthuli Ncube, at the conference assured the visiting Rwanda delegation of investment protection as the two countries continue to broaden their trade ties.

More than 60 Rwandan businesses participated at the conference that was a reciprocal conference after more than 100 Zimbabwe’s business representatives and officials visited Rwanda last year.

“The country is ensuring easy repatriation of dividends and investor protection as mainly provided for by the Bilateral Investment Promotion and Protection Agreement (BIPPA),” he said.

He further highlighted that Zimbabwe had vast investment opportunities available particularly in the agriculture, mining, and tourism sectors.

Foreign Affairs and International Trade Minister, Frederick Shava, said improved trade relations between Zimbabwe and Rwanda was poised for growth hence parties involved should expedite the implementation of several agreements signed.

“We are signing more memorandums of understanding (MOU’s) in the areas of Economic Trade and Investment Cooperation.

“This is a clear testimony to our commitment to making sure that the relations between the two countries produce results as quickly as possible and I am urging all parties involved to expedite the implementation of these and other previously signed agreements,” he said.

Minister Shava said during the Kigali conference, four MOUs were signed between the governments of Zimbabwe and Rwanda in the areas of agriculture and livestock, ICT and E-Government, Tourism and Business, Environment and Climate Change and the MOU signed between the Confederation of Zimbabwe Industries (CZI) and Rwanda Private Sector Federation.

Rwanda Minister of Trade and Industry Beata Habyarimana, said Zimbabwe’s trade investment body Zimtrade and the Rwanda Board initiated the important forum to promote bi-lateral trade and investment opportunities between the two countries.

She noted that the first engagement between Zimbabwe and Rwanda was held virtually in March 2021 and this set the impetus for cooperation.-eBusiness Weekly