Farai Mabeza
South Africa has pledged to support investment in Zimbabwe through its key development finance institutions, with President Cyril Ramaphosa saying the Development Bank of Southern Africa (DBSA) and the Industrial Development Corporation (IDC) are ready to invest in high-impact projects in the country.
Speaking at the Fourth Session of the South Africa-Zimbabwe Bi-National Commission in Pretoria on Friday, Ramaphosa said the institutions could support projects that strengthen infrastructure, production and regional trade.
“Institutions like the Development Bank of Southern Africa and the Industrial Development Corporation stand ready to invest in high-impact projects in Zimbabwe,” Ramaphosa said.
He said the focus should be on projects that connect factories and farms to markets, power stations to businesses and homes, dams to taps, and countries to their neighbours.
The pledge comes against the backdrop of a significant trade imbalance between the two countries, which Ramaphosa openly acknowledged as an issue that needs to be addressed.
“However, there is a significant imbalance in trade between our two countries,” he said, noting that South Africa exports much more to Zimbabwe than it imports.
Ramaphosa said the two countries needed to work together to narrow the deficit, including through the Memorandum of Understanding on Economic Cooperation and opportunities presented by the African Continental Free Trade Area (AfCFTA).
He said the objective should not simply be to increase trade, but to change its composition by enabling both countries to expand production and exports of goods manufactured from their natural resources.
The South African president identified mining, energy, agriculture, transport, logistics and water management as areas where greater cooperation could unlock opportunities.
He also called for increased investment in infrastructure, including roads, bridges, dams, airports, health facilities and schools, arguing that such infrastructure would underpin economic growth and expanded trade.
Zimbabwe\'s mineral resources, particularly gold, platinum and lithium, were highlighted as another area for deeper cooperation. Ramaphosa said both countries needed to move beyond exporting raw materials and increase local processing and beneficiation.
“Together, we need to put that aspiration into practice,” he said.
He also pointed to opportunities in energy, agriculture and water, including the Southern African Power Pool and cooperation around water supply between the two countries.
For Zimbabwe, the proposed involvement of South Africa\'s development finance institutions could provide an important avenue for capital into productive sectors and infrastructure, while supporting the development of regional value chains.
Ramaphosa said the people of both countries expected the Bi-National Commission to deliver “concrete results” — putting the emphasis on turning bilateral commitments into projects capable of creating jobs, expanding production and helping rebalance trade between the neighbours.
