Time to Convert Strong Relationship to Mutual Econ...

Time to Convert Strong Relationship to Mutual Economic Benefit, Says Indian Ambassador

Patience Muchemwa

Senior Reporter

The Indian Ambassador to Zimbabwe, His Excellency Bramha Kumar, emphasized the need to transform the longstanding cultural and diplomatic ties between Zimbabwe and India into mutually beneficial economic partnerships.

Ambassador Kumar said that a high-level Indian business delegation, led by the Confederation of Indian Industries is visiting Zimbabwe on October 21, 2024 with the aim to engage with local businesses, exploring investment and collaboration opportunities.

His remarks came after a meeting this past week with Zimbabwe's Vice President, Retired General Constantino Chiwenga, aimed at exploring areas of deeper economic cooperation and investment between the two countries.

Ambassador Kumar acknowledged the historical bonds between Zimbabwe and India, including cultural exchanges and trade that date back centuries, largely driven by strong people-to-people connections.

He noted that with this foundation already in place, the moment was ripe to elevate bilateral relations into robust trade, commerce, and investment ventures.

In their discussion, Vice President Chiwenga highlighted the significant opportunities available in Zimbabwe, calling for Indian businesses to explore various sectors of the economy.

“All sectors are open for investment,” he said, inviting Indian entrepreneurs to tap into the potential for growth in Zimbabwe.

The Vice President also underscored the need to increase bilateral trade and ensure that Zimbabwe fully leverages its position as a partner with India in international economic spaces.

Indian Investment in Zimbabwe: A Solid Foundation

Varun to introduce new beverage lines next year - The Zimbabwe Independent

Ambassador Kumar referenced the growing economic footprint of Indian businesses in Zimbabwe, noting that Indian investments are currently valued at approximately USD 600 million.

These investments have created more than 5,000 local jobs, a figure expected to rise as economic relations deepen.

Among the key contributors to this investment figure is Varun Beverages, the company responsible for bottling Pepsi products in Zimbabwe.

Since its establishment, Varun Beverages has rapidly expanded, becoming one of the largest beverage producers in the country.

Another Indian business player, Pure Oil Industries, operates in the edible oil processing sector, providing affordable vital products like cooking oil and margarine to the Zimbabwean market.

These successful investments highlight India's commitment to contributing to Zimbabwe's economic development, while also setting a foundation for future collaboration.

Exploring Viable Economic Opportunities: Low-Hanging Fruit

With Zimbabwe open for business, several sectors offer low-hanging fruit for both Indian and Zimbabwean businesses to venture into:

1. Agriculture: Leveraging India's expertise in agricultural technology, Zimbabwe could enhance productivity in its farming sector.

Collaboration in areas such as mechanization, irrigation, and agro-processing could see the two countries benefiting from increased food security and export potential.

2. Renewable Energy: India has made significant strides in solar energy development, and this expertise could be applied in Zimbabwe, which is looking to diversify its energy sources. Investments in solar power plants and off-grid solutions could help Zimbabwe reduce its energy deficit while creating green jobs.

3. Pharmaceuticals: India’s pharmaceutical industry is globally recognized, and Zimbabwe is an attractive market for affordable and high-quality generic medicines. Expanding Indian pharmaceutical manufacturing and distribution in Zimbabwe could significantly improve access to essential medicines in the region.

4. ICT and Digital Solutions: India’s prowess in information technology and digital solutions presents opportunities for investment in Zimbabwe’s growing ICT sector. Joint ventures could accelerate the adoption of digital services and e-commerce in Zimbabwe, bridging the digital divide and enhancing service delivery.

5. Mining and Mineral Processing: Given Zimbabwe's rich mineral resources and India’s growing need for raw materials, partnerships in mining and mineral beneficiation are poised to thrive. Indian companies could contribute capital, equipment, and technical expertise to enhance Zimbabwe's mining sector.

Ambassador Kumar said the Indian Embassy in Harare is committed to fostering closer ties between Indian and Zimbabwean businesses, ensuring that the strong diplomatic relationship is transformed into tangible economic benefits for both nations.