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Minister Mumbengegwi

Business Reporter
Zimbabwe and Russia have opened an historic chapter in their long history of political co-operation after agreeing to extend their ties to every sphere of economic interest.
The relations, which had predominantly been in the sphere of politics and date back to the time of Zimbabwe’s struggle for independence from Britain, will start mainly with the $1 billion platinum group of metals project in Darwendale, Mashonaland West.

The project is a joint venture between Russia firms VB Bank, Rustec and the Zimbabwe Mining Development Corporation (ZMDC).
The project will be commissioned today.

Russian Minister of Industry and Trade Dennis Manturov, yesterday said the two countries had successfully held the first session of the two countries’ joint permanent commission.

During the meeting, they agreed to explore opportunities in all sectors of economic influence for mutual benefit.
Mr Manturov was speaking at a business dinner organised by The Herald Business and Bankers Association of Zimbabwe, overwhelmingly attended by Cabinet ministers and a wide spectrum of high-profile executives from the Zimbabwe business community.

Minister Manturov was part of a high-powered Russian delegation on a three-day official visit during which several agreements are expected to be signed in the areas of agriculture, mining, infrastructure development and manufacturing.

Mr Manturov said the initial session of the inter-Governmental co-operation between the two countries laid a firm foundation for developing economic co-operation in the spheres of industry and infrastructure development among others and channel for more Russian investment in Zimbabwe.

He said the two countries will today commissions the Darwendale platinum project and that he was “proud that Russia had been granted unique opportunity to develop this project.”

Mr Manturov said that Zimbabwe offered unique opportunities for economic cooperation between the two countries to break into other markets of countries around Zimbabwe.

“We believe that together with other colleagues from other ministries and representatives of the business circles we will be able to move our two economies further and we will be able to ensure their stable growth,” Mr Manturov said.

He said Russia had reached quite high levels of hi-tech, particularly in the areas of aviation and certain advanced technologies and urged Zimbabwean businesses to take advantage of the cooperation to further develop in these areas.

Industry and Commerce Minister Mike Bimha, said they had a meeting of the minds in agreeing to give Russia freedom to choose opportunities from an array of Zimbabwe’s industry funding needs; areas they wanted to assist in among those that have catalytic effect on others, create jobs and generate exports.

“I think much of my comment will be more of what we discussed prior to the dinner. I think it is of more their readiness to assist in a variety of areas. I think from what we discussed they are very keen to look at the issue of lines of credit.

“They are quite keen to look at the issue of joint ventures and partnerships, particularly on the manufacturing side. I think what we have agreed on is to give an array of our needs. There are industries that require retooling, there industries that require, probably new technologies,” he said.

Speaking at the same occasion, Confederation of Zimbabwe Industries President, Mr Charles Msipa, said Zimbabwe had one of the most diversified manufacturing industries in Southern Africa that was, however, afflicted by serious bottlenecks of old infrastructure and access to affordable funding.

He said Zimbabwe was strategically located in the hub of the Southern African region with countries that have significantly higher levels of gross domestic product, and so was the most ideal location for all forms of industrial investment.

“So there are significant opportunities in our manufacturing industry for joint ventures and partnerships. This is very exciting work of the Zimbabwe and Russia joint commission…We have had significant investment in the mining sector in the past eight or nine years; we have had precious little FDI in the manufacturing sector,” said Mr Msipa.

Foreign Affairs Minister Simbarashe Mumbengegwi, said the two countries had opened new frontiers of economic cooperation by opening up what traditionally were inter-Government engagements held behind closed doors, but which were largely meant to create opportunities for business people, to interaction between Government ministers and business.

“We have had so many joint commissions and none of you have heard of this and yet we have held them to create opportunities for you. So I would like to thank honourable minister (of finance) for agreeing to share with all of us (details of discussions in the joint commission,” Minister Mumbengegwi said.