SA, Zimbabwe sign investment deal
30 November 2009
South Africa and Zimbabwe have signed an agreement to create an enabling and protective environment for investments made by nationals of both countries in each others' territories.
The Agreement on the Promotion and Reciprocal Protection of Investments was signed in Harare on Friday, following a trade and investment seminar between business people from the two countries.
Increased security and certainty
Zimbabwean Economic Development and Investment Promotion Minister Elton Mangoma said that the agreement would offer companies and individuals increased security and certainty under international law when they invested or set up a business in either country.
"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," he said. "Allowing foreign investors to settle disputes with the host country through international arbitration is an important aspect in this context."
SA, Zim 'inextricably linked'
South African Trade and Industry Minister Rob Davies said that the two countries shared historical and cultural linkages, and that South Africa's economy was inextricably linked to the Zimbabwean economy.
He said the South African development finance institutions such the Industrial Development Corporation were further considering a number of infrastructure development projects in transport, energy, telecommunications and agribusiness.
Some of the new proposed investments by the South African private sector in Zimbabwe would, amongst others, include the agro-processing sector, telecommunications, mining and infrastructure.
Economic cooperation
Further to this, a memorandum of understanding on economic cooperation for the two countries has been finalised and is expected to be signed early next year.
Davies said the memorandum 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.
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.
Source: BuaNews
