Maravi

(HERALD) Bipa delays stifle credit lines: Biti

Bipa delays stifle credit lines: Biti
Business Reporter

THE country is losing out on lines of credit worth millions of US dollars and billions of rands due to a delay in the signing of a Bilateral Investment Protection Agreement with South Africa, Finance Minister Tendai Biti has said.

The minister told the Portfolio Committee on Budget, Finance, and Investment Promotion that the Government was behaving "dishonorably" as it was responsible for the delay.

He added "political issues" on the Zimbabwean side had caused the delay, without elaboration. Zimbabwe is negotiating for US$50 million in lines of credit from South Africa.

In addition, it was also pursuing the restoration of the 2,65 billion rand facility made available by South Africa to Zimbabwe for 20 years, but discontinued last year at the height of economic challenges in the country.

"We are scoring own goals, serious own goals," Minister Biti said, adding the delays were straining relations between the two countries.

He said this was evident in the discussions he held recently with his South African counterpart Mr Pravin Gordhan and SA Trade and Industry minister, Dr Rob Davies.

"The South African government is trying to help us, but we are refusing to help ourselves," he said.

Signing of the agreement between the countries was postponed "at the eleventh hour" last March, apparently after Harare objected to a clause in the accord referring to land and investments on land.

Economic Planning Minister Elton Mangoma told an online publication last month the BIPA could have been signed had it not been for elections in South Africa last April. New personnel took over at government ministries and departments involved in negotiating the agreement.

South Africa is Zimbabwe’s largest trading partner in the region, and is currently the major supplier of most goods that are being sold in supermarkets in the country.

A 22-member South African business delegation led by business mogul, Mr Patrice Motsepe, visited the country in April and met President Mugabe, Minister Biti and the business community and expressed concern on guarantees on security of their investments.

Addressing businesspeople after the courtesy calls, Mr Motsepe said one of the major weaknesses of African states was that they came up with policies and laws to attract investment and when investment flowed into the country, "they shifted goalposts".

"Our concern is that there should be no shifting of goalposts a few years down the line," he said. "What the President and the Finance Minister have reconfirmed is the new policy formulated by the inclusive Government, to create an environment which builds trust."

Labels: BILATERAL INVESTMENT PROTECTION AGREEMENT, TENDAI BITI

posted by MrK @ 3:52 PM