via 5 signs of shifting ground beneath our feet – NewsDay Zimbabwe November 20, 2014
A number of interesting developments, which can’t be taken for granted, have come to pass in recent weeks.
Though some of them have roots in politics or are themselves essentially political processes, their significance in economic terms is far-reaching.
Finally, a British business delegation
Given the rancor that has characterised Harare-London relations from as far back as 2000; a visit by a British delegation to engage public and private investors in Zimbabwe is — by any standards – an important event which is worthy of all the attention it can get and is reflective of change that is imminent, if not already unfolding.
Whether it was a tokenistic move or a genuine outreach programme is probably not the issue – the main thing is that it happened.
Working visit by Danish Trade and Development minister
Danish Trade and Development minister Morgan Jensen was in the country from November 5-7 2014.
On the November 6 2014 he made it known to Finance minister Patrick Chinamasa — in no uncertain terms — that Denmark will extend financial assistance to Zimbabwe subject to conditions such as respect for the rule of law, land reform compensation and clarification of the indigenisation and empowerment law.
If these elephants in the room are dealt with, Denmark is prepared to provide financial support towards debt relief and development programmes, as well as infrastructure rehabilitation and agricultural sector growth, areas which Jensen said Denmark had expertise in.
The significance of this visit — as well as that of the British delegation — is that it provides an opportunity for Zimbabwe’s would-be benefactors to outline their preferred terms and conditions for re-engagement so that we know exactly what to address and don’t shoot in the dark.
IMF approval of successor SMP
The main objective of the SMP is to strengthen the country’s external position, a prerequisite for arrears clearance, resumption of debt service and restoration of access to external financing.
Since most bilateral and multilateral lenders take a cue from the IMF, its seal of approval for the successor SMP therefore counts for something profound for Zimbabwe as it sends the right signals to the rest of the international community.
It paves the way for the country’s re-engagement with rest of the international community.
The Dutch Good Growth Fund (DGGF) seminar
Although this was a multi-faceted event, its centerpiece was undoubtedly the Dutch Good Growth Fund from which it derived its name.
The seminar — which I attended and which also attracted participants from Malawi and Zambia — was clearly intended to showcase an array of Dutch business activities.
A high profile event attended by Dutch ambassador Gera Sneller and Industry and Commerce minister Mike Bimha, it could also be seen as a subtle initiative by the Dutch to stake a claim on Zimbabwe’s economic future by proactively engaging with private sector players, now that political hurdles have effectively been dismantled through the lifting of sanctions.
It’s not a secret that EU companies have for the past decade or so been taking a cue from their governments when it came to economic engagement with Zimbabwe.
In that regard, the involvement of the Zimbabwe-Netherlands Business Link speaks volumes for the Dutch’s intentions going forward. By their own admission, the Dutch have core competences in agriculture, something that should be of great interest to Zimbabwe considering the country’s paradox of a great need for resources and immense potential in the agricultural sector.
Lifting of EU trade sanctions
The 28-member bloc’s lifting of targeted sanctions involving travel and financial restrictions after over a decade is notable for a number of reasons.
Firstly, on paper Zimbabwean companies can now openly trade with their EU counterparties without any restrictions, whereas in the past the restrictive measures were a risk factor which accounted for lower prices for some Zimbabwean exports such as diamonds and also resulted in limited access to offshore credit at significantly high cost for Zimbabwean borrowers.
Most importantly, the new development opens a window of opportunity for Zimbabwe to benefit from budgetary support under the European Development Fund (EDF). From 2015, the EU is expected to start a EUR234 million (US$300 million), five-year funding programme in support of health, agriculture and governance initiatives in Zimbabwe under the 11th EDF.
Fixing what’s broken
When viewed against the background of each other, events such as the visits by the British and Danish business delegations as well as the Dutch Good Growth Fund seminar all happening at more or less the same time suggest a competitive aspect to the process of the international community’s re-engagement with Zimbabwe.
It would seem to me that going forward; the country will be the subject of much welcome attention as eventually, no one wants to miss out on the Great Zimbabwean revival story.
It will not necessarily be a stampede as some would suggest, but it is certainly a movement worth being a part of.
With what looks to me like a lot of international good will for the country despites our glaring shortcomings, surely the ball is in our court.
We need to fix what’s broken and it’s up to us how we reciprocate to these overtures. Do we choose positive or negative energy? Do we look to the past or to the future?
Feedback: omen.muza@gmail.com. Omen N Muza writes in his personal capacity. You can view his LinkedIn profile at zw.linkedin.com/pub/omen-n-muza/30/641/3b8
COMMENTS