HARARE, A 32-member business delegation from South Africa is visiting Zimbabwe to seek new opportunities under the the Department of Trade and Industry (dti) Trade and Investment Initiative.
One of the delegation members is Diane Kraft whose furniture company, Design Kraft, has been operating for two years in an environment which is already saturated. She decided to take part in this sixth trade mission led by the dti to Zimbabwe to seek new opportunities. It is Design Kraft’s first foray into foreign markets.
“Johannesburg is very competitive and big businesses tend to throttle the small companies. So we are hoping to be able to look beyond the borders for opportunities,” Kraft said here Monday.
Zimbabwe, which has suffered a recession, wants to establish partnerships which will see these companies supplying machinery to revive production. It’s also part of South Africa’s plan to achieve regional integration.
South Africam Ambassador to Zimbabwe Vusi Mavimbela said: “It is important that we work on this integration and ensure that we strengthen not just the trade, not just selling, but actually investing and making sure that we build the industries.”
Unequal trade relations are a major concern to Zimbabwe’s trade promotion body, ZimTrade. Most of Zimbabwe’s exports to South Africa are raw materials and minerals and the country’s trade deficit with South Africa continues to grow and stands at 3.2 billion US dollars.
ZimTrade chief executive officer Sithembile Pilime said in 2015, South Africa accounted for 38 per cent of Zimbabwe’s imports and absorbed 71 per cent of the country’s total export. Conversely, however, Zimbabwe does not feature prominently as a trading partner for South Africa.
“There is also a need for South Africa to open its market to competitive, value-added Zimbabwean products such as clothing, footwear and furniture, among others,” he adde.
South Africa has invested more than 20 billion Rand (about 1.314 billion US dollars) in Zimbabwe over the last 12 years and says both countries need to exploit their geographical proximity, skills and vast natural resources to address the trade imbalance.
South African Department of Trade and Industry Deputy Director-General Pumla Ncapayi said: “The onus is on the government to assist our businesses in doing business by addressing the tariff and non-tariff barriers that continue to hinder trade between our two countries.”
The delegation will seek opportunities in Zimbabwe’s three major cities of Harare, Bulawayo and Gweru in the week-long visit.
SOURCE: SABC