The R500 million revolving fund for Zimbabwe pledged by South Africa in 2010 has been operationalised following meetings between the two countries last week.
Economic Planning and Investment Promotion permanent secretary Desire Sibanda said this was made possible by the ratification of the bilateral investment promotion and protection agreement (BIPPA) between the countries last year.
The BIPPA seeks to promote good trade relations between Zimbabwean and South African investors.
“Before the conference (Trade and Investment) I had a meeting with the department of Trade and Industry where we both agreed that it’s high time we enabled the BIPPA and facilitated trade between the two countries,” said Sibanda.
Sibanda said South Africa would be sending a delegation to Harare and Bulawayo by the end of this month.
“The money doesn’t come to us, but goes to the business sector. Part of it has already come albeit at a slow pace, ” he said.
The country has signed BIPPAs with a number of countries, among them, Botswana, Kuwait, Opec Fund, Malaysia, Singapore, Thailand, Egypt, Mauritius and Austria as it seeks ways to unlock funding.
Zimbabwe had been failing to attract adequate foreign direct investments (FDI)due to high-country risk and had recorded a sharp decline compared to other countries in the region.
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In 2011, the country recorded FDI inflows of $250 million according to United Nations Conference on Trade and Development report which was higher than 2010 — where it was stagnant at $105 million.
The country was trying to lure investors back into the country with the Economic Planning and Investment Promotion ministry having organised a roadshow last week in South Africa.
The two-day investment and trade conference was attended by at least 800 people — both local and foreign investors.
