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(HERALD) Parliament approves Zim-Botswana BIPPA

Parliament approves Zim-Botswana BIPPA
Wednesday, 12 October 2011 00:00
Lloyd Gumbo Herald Reporter

THE release of the US$70 million credit facility promised by Botswana is imminent after the House of Assembly approved the ratification of an agreement between the two countries yesterday. The House approved the Bilateral Investment Promotion and Protection Agreement which seeks to promote and protect investment between the two countries.

Other BIPPAs approved are with India and Iran. Botswana which has already ratified the agreement is waiting for Zimbabwe to do the same before it releases the money. Steering the motions, Economic Planning and Investment Promotion Deputy Minister Samuel Undenge said ratification of the BIPPAs would open trade opportunities and protection with the said countries.

"In the agreement signed on March 21, 2011, the Botswana Government promised to provide US$70 million credit line to promote investment," Deputy Minister Undenge said.

"The Botswana Government has already ratified and once we ratify this agreement will unlock a lot of benefits for us especially Bulawayo which is closer to Botswana will benefit."

Botswana is one of the Sadc countries that had undertaken to help Zimbabwe get its economy back on track after the formation of the inclusive Government in February 2009.

The credit facility is yet to materialise because the Government of Zimbabwe is yet to ratify the agreement to protect their investment.

Botswana's Minister of Trade and Industry Ms Dorcas Makgato-Molesu at the signing of the BIPPA in March said the lines of credit would be opened once the modalities of conditions to access the funds were concluded.

On the India BIPPA Deputy Minister Mudenge said trade with India had been very low and the aim of this agreement was to ensure trade and investment between the two countries was increased.

The BIPPA with India was signed in February 1999 while the one with Iran was signed in May of the same year.

He said the country has received about US$37 million in direct foreign investment from India between 2008 and 2009 adding that ratification of the agreement would increase investment.

He added that the recent deal with Essar of India which partnered Government to resuscitate Zisco Steel was testimony to how important trade relations between the two countries are.

Deputy Minister Undenge said Iran was also an important player in trade considering that there were Iranian companies that are already operating in Zimbabwe.

The BIPPAs now await approval by the Senate before Presidential assent if there is no dispute.

Labels: BIPPA, BOTSWANA, CREDIT FACILITIES, ZIMBABWE

posted by MrK @ 7:47 PM