France's business movement to visit Zimbabwe for...

France's business movement to visit Zimbabwe for investment exploration

Agathe Meyer

Zim Now Writer

From October 17 to 18, 2024, the French business association MEDEF will be visiting Harare on a business mission

Following an in-depth discussion about massive investment opportunities with Vice President Constantino Chiwenga and an invitation to the Elysée Palace, France will be more openly re-interpreting its economic openness to Zimbabwe.

This mission, the first since 2015, takes place in a rather unstable context. To better understand what's at stake, it's worth summarising the situation and economic relations with France.

The US$3.1 billion debt to the Paris Club (public creditors who helped alleviate hyperinflation) is still outstanding. Diplomatic efforts to re-establish trade links with the EU have also temporarily lifted sanctions.

While these problems remain, Zimbabwe is on the mend.

In addition to actively working to restructure its external debt since 2022 with international lenders and bilateral creditors, the introduction of the new currency last April is delivering the hoped-for results.

The MEDEF therefore, went to Zimbabwe with a view to observing and identifying investment opportunities. Although the economic relationship with France is visibly asymmetrical as detailed, the prospect of recovery gives impetus to the government.

However, it will be working hard to structure these relations, so that locals can benefit from these agreements.

The October meeting therefore presents a number of challenges for Zimbabwe, which is well placed to maintain a win-win relationship. The country remains an agricultural and mining powerhouse and has been experiencing a recovery since 2021 with rising exports.

According to our contact at MEDEF, this mission will enable us to “explore less obvious markets: it's also a time to identify opportunities for the coming years, in multiple sectors”.

It's also an opportunity to take stock of the country's economic and monetary development, by meeting with the authorities, donors and the financial sector.

While the details of France's offer to government are yet to be defined, the main focus is on “providing solutions around (mineral) extraction and developing a local value chain”.

Local French companies would thus continue to generate employment. In addition to mineral processing, the agrarian transformation industry also holds potential for French investors, as do energy (by supporting the ecological transition), the hotel industry and the digital economy

Zimbabwe, for its part, would see progress in infrastructure, health and water. The country could also benefit from technology transfer, which would notably improve the pharmaceutical industry in the long term.

The exchange of strategies and the development of economic partnerships could be the key to the country's definitive exit from the informal economy.