South Africa and Zimbabwe today signed the agreement on the promotion and reciprocal protection of investments in Harare, Zimbabwe. The signing of the agreement followed the trade and investment seminar that was held early today between business people from the two countries.
The signing of the agreement will create an enabling and protective environment for investments made by nationals of both countries in each other’s territories.
The South African Minister of Trade and Industry, Dr Rob Davies, said that the two countries shared historical and cultural linkages and that South Africa’s economy is inextricably linked to the Zimbabwean economy.
Minister Davies stated that South African Development Finance Institutions such as the Industrial Development Corporation (IDC) are considering a number of infrastructure development projects in transport, energy, telecommunications and agribusiness.
He also stated that some of the new proposed investments by the South African private sector in Zimbabwe would, amongst others, include the following sectors:
* Agro-processing sector
* Telecommunications
* Mining
* Infrastructure.
The Zimbabwean Minister of Economic Development and Investment Promotion, Elton Mangoma said that the agreement would offer companies and individuals increased security and certainty under international law when they invest or set up a business in other countries party to the agreement.
“The reduction of the investment risk flowing from the agreement is meant to encourage companies and individuals to invest in the country that concluded it. Allowing foreign investors to settle disputes with the host country through international arbitration is an important aspect in this context,” said Mangoma.
Minister Davies said that a Memorandum of Understanding (MoU) on economic cooperation for the two countries had been finalised and is expected to be signed early next year. He stated that the MoU would ensure that there was coordinated engagement, in terms of the private sectors from both countries, and cooperation in terms of institutional strengthening and capacity building.
Minister Davies concurred with his Zimbabwean counterpart, adding that the signing of today’s bilateral investment treaty would go a long way in building the much-required business confidence in Zimbabwe and in the process, ensure the re-integration of Zimbabwe into cross-border projects of significance such as the spatial development initiatives, which will enhance regional economic development and integration.
The signing ceremony was also attended by the Zimbabwean Deputy Prime Minister Arthur Mutambara, other cabinet ministers, business people from both South Africa and Zimbabwe and senior government officials.
For further information contact:
Sidwell Medupe
Cell: 073 522 6801
E-mail: MSMedupe@thedti.gov.za
Issued by: Department of Trade and Industry
27 November 2009
Source: Department of Trade and Industry (http://www.dti.gov.za/)
