Zimbabwe Turns To Russia As Economic Revival Tops Agenda

From banking sector reforms to new bilateral deals, the past month has seen the deployment of strategic and persistent moves to revitalize its economy. To further this cause, it has dived into new deals with Russia, after failing to secure funds from Asian giant China.

The agreements were made during the First Session of the Zimbabwe Russia Inter-Governmental Joint Commission on Economic, Trade, Scientific and Technical Cooperation jointly facilitated by Foreign Affairs Minister Simbarashe Mumbengegwi and Russian Minister of Industry and Trade Mr Denis Manturov.

Zimbabwe’s new deals with Russia focus on trade and investment, and will directly be a part of the Infrastructure and Utilities projects in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset). Some 20,000 jobs are expected to be created as the deals are executed.

Apart from signing the deals, a big part of the agenda for the trip of the Russian Delegation to Uganda was the commissioning of a $1 billion Integrated Platinum Group Metals Project in Darwendale, the biggest mining outfit in the country.

The project, which is a joint venture between the Zimbabwe Mining Development Corporation (ZMDC) and state-owned high tech corporation, Rostec and VB Bank, is expected to significantly boost value addition and beneficiation which are key themes of Zim-Asset.

Mr Manturov, at the commissioning of the project yesterday, disclosed Russia’s readiness to assist Zimbabwe in multiple ways, including the provision of expertise.

“I am happy that we have finalized the deals. This will promote the launching of bilateral projects relating to mining development, energy, agriculture, communication and health,” he said.

“We should now actualize cooperation and open new prospects. It is really impressive that in such a short time we managed to come to the signing of various agreements during this inaugural session of the Inter‐ governmental commission. I believe there are vast opportunities and cooperation in various spheres, especially in mining.”

To make for smooth operations, ZMDC acting general manager, Mr Wilson Chinzou, signed an MoU with the Senior Vice President of Russia’s Manufacturing Conglomerate OMZ, Mr Igor Molibog that will allow the Russian company to provide Zimbabwe with mining equipment.

These chain of investments will contribute to placing Zimbabwe on a renewed economic trajectory; but beyond that, Zimbabwe may become a long term partner of the Russian Federation going forward.

Source: http://www.ventures-africa.com/2014/09/zimbabwe-turns-to-russia-as-economic-revival-tops-agenda/