HARARE Zimbabwe and South Africa last Friday signed a Bilateral Investment Promotion and Protection Agreement (BIPPA), five years after the idea was mooted.The agreement was signed at Harare International Conference Centre despite protestations by some white commercial farmers who wanted the deal to be blocked in South Africa.
Zimbabwes Trade Minister Elton Mangoma said the inking of the deal was good for Zimbabwe and the region.
“Today is a good day for Zimbabwe, a good day for the region,” Mangoma said after the signing ceremony. “I would like to pay tribute to my colleagues in government. South Africa has traditionally been our biggest trading partner. We want to explore new ways to do business with South Africa.”
South African Trade Minister Rob Davies hailed the signing of the agreement which was attended by 63 South African business executives saying the BIPPA will create the confidence that will allow many potential investments to take-off and to realise their potential.
“The agreement provides legal certainty for those engaged in investments in Zimbabwe and we are committed together with the Zimbabwe government that all the commitments that are in this agreement are honoured,” he said. “This agreement will provide the legal security that is required by present and future investors in this country.”
Davies however, expressed concern and “regret that a small minority in the South African business community sought to block the BIPPA. I am relieved however that we now have an out of court agreement endorsed by a judge,” he said.
The South African Trade Minister also hailed the global political agreement (GPA) that brought a unity government between President Robert Mugabe’s Zanu (PF) party and the two formations of the MDC led by Prime Minister Morgan Tsvangirai and Deputy Premier Arthur Mutambara as the best workable solution to the countrys challenges.
“The Global Political Agreement process is the best and it is the only option for Zimbabweans to come together for the recovery this country. Our support for the implementation of the GPA process is also based on the strong sense that it is also critical to our own interests as South Africa,” he said.
Davies said the trade agreement will cover investment between the two countries starting September 15 when the GPA was signed, adding that the deal would protect investments of both countries across the borders.
Business Unity South Africa (BUSA) which was created in October 2003 through the merger of the Black Business Council and Business South Africa hailed the signing of the trade pact saying it will encourage many investors to come to Zimbabwe.
It is not only South African business that will benefit from this BIPPA, a lot of South African private sector is willing to invest in Zimbabwe, BUSA spokesman Casswell Makama said in Harare. Zimbabwe has gone through a lot of challenges but when we look at the BIPPA we are encouraged and as business we feel that Zimbabwe is open for business, he added.
The High Court in Pretoria last Thursday ordered the South African government to honour a ruling by the Southern African Development Community Tribunal in favour of commercial farmers in Zimbabwe after lobby group AfriForum took its fight against the BIPPA to the courts.
AfriForum made an urgent application on behalf of a South African citizen farming in Zimbabwe, Louis Fick, saying the agreement should also protect investments undertaken prior to its signing.
Post published in: Economy