Zim, SA closer to investment deal
Our reporter
Wed, 11 Nov 2009 04:22:00 +0000
THE South African and Zimbabwean governments are inching closer to finalising their long-awaited Investment Protection Agreement.
A development team from Zimbabwe and the South African department of trade and industry have been engaged in negotiations for more than a year.
The main provisions of the agreement cover the handling of foreign investments in Zimbabwe, the transfer of capital and investment income, compensation for expropriation and procedures for settling disputes.
The signing of the agreement has been postponed on numerous occasions at the 11th hour, reportedly after the Zimbabweans objected to a clause referring to land investments.
Kevin Lings an economist at Stanlib, said the mining, financial and retail sectors were suffering due to a lack of investment in the country and this was largely due to the lack of insurance against land acquisitions.
However, George Monyemangene, chief director of South Africa's DTI's African bilateral department, said the agreement was not an insurance initiative, but rather a bilateral investment treaty that would see both countries implementing regulatory mechanisms that would protect their investments.
Labels: BILATERAL INVESTMENT PROTECTION AGREEMENT, SOUTH AFRICA, ZIMBABWE
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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
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