The Union Minister of Commerce and Industry Shri Anand Sharma met Mr. M.C. Bimha, Minister of Industry and Commerce, Zimbabwe on the sidelines of the Partnership Summit 2014 in Bengaluru today. Both the sides noted that the present levels of bilateral trade and investment are much below the potential, and that there was a need for revival of Zimbabwe’s manufacturing sector, and greater value addition and beneficiation of natural resources, for Zimbabwe to increase the value of its exports. Shri Sharma put forward his views on cooperation in agro/food processing sector, gems and jewellery, Lines of Credit and various capacity building programmes.

Shri Sharma was also briefed about the current status of USD 750 million iron ore deal between Essar and the Government of Zimbabwe. “Early satisfactory resolution of the pending issues would encourage other investors, especially from India to invest in mining and other sectors in Zimbabwe,” said Shri Sharma. Mr. conveyed that in the last two months, most of the issues have been addressed and conveyed the commitment to help Indian investors.

Shri Sharma will be visiting Zimbabwe in first week of February. He said that both the sides will finalise long term agreement on supply of rough diamonds and establishment of a diamond cutting and polishing institute in Botswana.

Both the leaders also reviewed the status of Line of Credit projects in Zimbabwe. India, in September 2012, approved a Line of Credit (LOC) worth USD 28.6 million for up-gradation of Deka Pumping Station and the River Water Intake System in Zimbabwe. The agreement was signed between Exim Bank and Zimbabwean authorities in June 2013 to implement the LOC. Water and Power Consultancy Services (WAPCOS), a Government of India PSU was appointed as Project Implementation Consultant for the project in November 2013. With these significant developments already in place, Shri Sharma expressed the hope that the LOC will be implemented expeditiously.

Shri Sharma asked for a proposal from Zimbabwe for Indian Institute of Foreign Trade’s offer to conduct an Executive Development Programme on International Business in Zimbabwe.

Shri Sharma also met Mr. Carl H G Schlettwein, Minister of Trade & Industry, Namibia and reviewed the progress of bilateral ties.

International development cooperation advancing bilateral trade, Lines of Credit, and capacity building to boost value addition and investment. Meetings with Zimbabwean and Namibian ministers focused on enhancing bilateral economic cooperation through revival of manufacturing, value addition of natural resources, and cooperation in agro/food processing and gems and jewellery. India proposed capacity building, Lines of Credit, and an Executive Development Programme to support investment and project implementation. Parties reviewed specific Lines of Credit and implementation arrangements, noted pending issues in mining deals as impediments to investor confidence, and committed to resolve outstanding matters and finalise long-term supply and beneficiation arrangements for rough diamonds and related institute establishment.