The Sunday News
Shepias Dube Business Reporter
ZIMBABWE and Iran will in May sign a memorandum of understanding (MoU) set to strengthen co-operation between up and coming businesses and potential investors from the Middle East country, an official has said.
Deputy Minister of Small and Medium Enterprises and Co-operative Development Cde Noveti Muponora said the two countries will sign the MoU after an exchange visits by officials from both countries.
“The MoU on SMEs and co-operatives is at an advanced stage and awaiting the signatures of the two ministers. The signing ceremony is expected to be done in May at an international expo for Small and Medium Enterprises which is being organised by the Chamber of SMEs,” he said.
A high powered delegation from Iran led by that country’s Minister of Co-operatives, Labour and Social Welfare Mr Ali Rabiei, is expected to participate at the expo.
The decision to forge co-operation comes after delegations from the two countries made successful visits to the respective countries over the last five months.
In October last year a 14-member delegation from Zimbabwe led by the Minister of Small and Medium Enterprises and Co-operative Development, Cde Sithembiso Nyoni, visited Iran on a fact finding mission.
A fortnight ago Iran reciprocated the visit with a 14-member delegation led by that country’s Deputy Minister of Co-operatives, Labour and Social Welfare Dr Abbas Hossein to explore business opportunities in the country.
Cde Muponora said the delegation had representatives from mining, agriculture and pharmaceuticals.
They met Zimbabwean representatives from these sectors and visited many companies.
“The Iranian delegation was so enthusiastic about investing in Zimbabwe and they visited many companies aligned to the three sectors represented. These included tobacco farms and companies, pharmaceutical companies and mines in Kwekwe, Mvuma and Hwange.
“They also visited the Zimbabwe Investment Authority (ZIA) to get business opportunities in Zimbabwe as well as having an appreciation of the legal and regulatory environment obtaining in the country,” he said.
The deputy minister said the Iran delegation was satisfied with Zimbabwe’s level of taxation and investment opportunities.
On the benefits of having a MoU with Iran, Cde Muponora said SMEs will get an opportunity to learn a lot from their Iranian counterparts.
“SMEs are the new economy in Zimbabwe and in Iran they went through the same phase but managed to adopt and nurture them to large corporations.”
He said the anticipated co-operation will also enable Zimbabwe private sector, SMEs in particular, to access funds through Iran’s Export Credit Fund facility whose senior officer was part of the delegation that visited Zimbabwe.
This is expected to be a panacea to the liquidity crisis which has affected the growth of the sector locally.
An official of the National Chamber of SMEs who runs a pharmacy in Bulawayo, Mr Duncan Hadebe, said the MoU will likely lead to joint ventures, partnerships and other forms of investment especially in mining, tobacco and pharmaceuticals.
