The Sunday News
Roberta Katunga, Senior Business Reporter
THE Investment and Trade Initiative between Zimbabwe and South Africa that was held in Harare, Gweru and Bulawayo last week attracted mostly SA companies looking for markets in the country as opposed to those seeking to inject direct capital, it has been learnt.
The majority of company representatives interviewed in Bulawayo said their objective was to penetrate the Zimbabwean market and identify gaps for their products and services.
Get Mining Services, suppliers of capital equipment like bulldozers, motor graders and excavators, official Ms Olivia Fuka said they had received an overwhelming response from businesses and managed to make leads which will be considered upon return to SA.
“Our main objective coming to this trade mission was to penetrate the Zimbabwean market and fill the gaps. We noticed that there is a need for capital equipment especially with all the mining activities going on here. We are considering becoming trade partners with businesses in Zimbabwe,” said Ms Fuka.
Rail Roads Association South African president Mr Elvin Harris said for them, what stood out was the site visit to the National Railways of Zimbabwe (NRZ) where they learnt about the state of the railway as well as the upgrades that the parastatal intends to undertake.
Mr Harris said NRZ presented opportunities for SA businesses and that there was a lot they could do for NRZ to be revived and assist the railway to function.
“We will encourage our members to get involved in Zimbabwe because for the continent to succeed globally, we have to improve infrastructure especially transport. Africa is endowed with resources and the best way to move these resources is through rail thus improving rail networks across the region is the best way to fully exploit our economic potential,” said Mr Harris.
He said the key challenge at NRZ was funding which is also a problem that South Africa once faced in terms of not investing in its infrastructure, leaving it to dilapidate. Mr Harris said for NRZ to be efficient, it was important to invest in new technology.
“Over the years, they have not been able to invest in the infrastructure left by the colonialists or invest in new ones.
Corridors across the continent need to be developed and invested in, thus constant funding is needed,” he said.
Speaking on the fears of protection of investment, Mr Harris said they were convinced that Zimbabwe was working on reviewing and amending certain frameworks and laws making it easier for investors to come through.
Zimbabwe National Chamber of Commerce (ZNCC) past president and Reliance Holdings chairman Mr Obert Sibanda said proper consultancy was needed prior to such engagements so as to avoid a mismatch in delegates as the South African delegation was made up mostly of people coming in to sell their equipment and products and in turn meeting with people with the same intention.
Mr Sibanda said none of the businesses were ready to offer solutions to closed Bulawayo companies as they had their own products.
“What we need as companies is capital injected into our economy to resuscitate our own companies. It is difficult when you meet up with people who are looking for jobs like us,” he said, adding that he would have wanted to see people looking for PPP projects.
Speaking on NRZ, Mr Sibanda said it was common practice for any businessperson to be concerned about return on investment whether in the short or long term. He however, said dilapidated infrastructure presents opportunities to revamp and invest it in.
“Similarly NRZ presents opportunities for investors. The challenge is that investors are not sold the whole package which shows whether they will be able to recoup their money,” he said.
Buy Zimbabwe economist Kipson Gundani said despite the recent initiative leaning on trade rather than investment, trade was still necessary especially in capital equipment and intermediary goods as there is an element of value addition. He said the only problem would be importing finished products that go directly into consumption.
“Trade in capital equipment is healthy but the issue becomes tricky when you buy finished products that do not add any value to the Zimbabwean market and economy at large. This trade mission between Zimbabwe and South Africa presents an opportunity to form partnerships and joint ventures,” said Mr Gundani.
The SA delegation consisted of 37 companies led by the Department of Trade and Industry Deputy Minister Mzwandile Masina.
Some of the companies that had meetings with local businesspeople included Lets Share Trading, Yellowstar Manufacturing, Gemini GS and Environment Services, Be- Direct Solution, Tarch Chemical Marketing, Wear Check, Ekasi IT solutions, BMZ Import and Export Agencies, Midlands Aluminum Projects, among others.
