Tinashe Makichi Business Reporter
The European Union will commit about €6 million towards enhancing Zimbabwe’s regional economic integration, an EU official said.
Speaking at the second consultative workshop for Cotton to Clothing strategy, EU economic corporation attaché Mrs Ana Pena said regional economic integration through the various trade blocs is the only way to revive the economy.
Africa currently enjoys duty free quota access into EU for textile products through the Economic Partnership Agreement and Zimbabwe has been urged to take advantage of that to become a global player.
The EU will avail funds under the Common Market for East and Southern Africa-led Regional Integration Support Programme and the Regional Integration Support Mechanism.
“We are working with Government and COMESA in making sure that Zimbabwe becomes more active on the regional markets. We requested Government to develop a project proposal outlining strategies that can make Zimbabwe competitive again.
“Under RISP-Comesa, Zimbabwe will gain €4,8million as part of a programme to support its regional economic integration,” said Mrs Pena.
An additional €1 million will come from the RISM-Comesa for the implementation of the Interim Economic Partnership Agreement that was signed in 2012.
Mrs Pena said EU was currently in discussions with Government on the implementation of the RISM programme and resources are set to be available as soon as negotiations are complete.
She said Zimbabwe stands a chance to become a big global player in the cotton and textile sectors only if Government assures investors of policy consistency.
Mrs Pena said there is need for Zimbabwe’s cotton and textile industry to sustain and expand established collaboration and capacity building initiatives with Asian spinning mills and transform these into long term partnerships.
However, stakeholders in the cotton and textile industry in conjunction with Industry and Commerce Ministry are working on finalising a strategy paper on how to revive the sector through international trade.
Speaking on the sidelines of the workshop, Kenyan African Cotton and Textile Industries Federation executive director Mr Rajeev Arora said foreign direct investment inflows to Zimbabwe can only be increased if the country starts participating in regional integration.
“Africa today promises the highest return on investment and its GDP is predicted to double in the next 10 years. Therefore, Zimbabwe should come up with policies conducive for business because FDI brings new technology and ideas for the industry that is failing to take off,” said Mr Arora.
He said: “There is great opportunity in the Zimbabwean cotton and textile industry only if policies are aligned to the needs of the investors.”
He said an integrated cotton, textile and apparel industry that competes on the world market has the capacity to revive the economy.
He said Zimbabwe should take advantage of the duty free access to the regional markets available through COMESA, the East African Community, Economic Community of West African States, and the Southern African Development Community.
Duty free access to the US market is mainly available through AGOA for SSA while duty free access to the EU market is available through the interim Economic Partnership Agreements (EU-EPA) and other bilateral arrangements such as GSP.