Middle East investments key to Zim’s growth

LAST YEAR, President Mnangagwa appointed AMBASSADOR MAHOMED JASSAT his chief adviser on Middle East Affairs, underscoring the Second Republic’s drive to enhance cooperation with countries in that region. Our reporter DEBRA MATABVU spoke to Amb Jassat, who shed light on the evolving trade, investment and cultural exchange relationship between Harare and the Middle East.

****************

Q: What is the state of Zimbabwe’s diplomatic relations with Middle Eastern countries?

A: My roles and responsibilities as a Chief Adviser to the President, His Excellency, Dr Emmerson Dambudzo Mnangagwa, is to, among other things, monitor and analyse trade and investment dynamics in the Middle East that have a direct or indirect impact on Zimbabwe’s trade and investment drive and advise the President thereto.

I also assist in the formulation, implementation and review of policies governing Zimbabwe’s trade and investment relations with countries in the Middle East, in line with the National Development Strategy 1 (NDS1) and Vision 2030.

Lastly, I conduct comprehensive research to inform strategic issues relating to Zimbabwe’s trade and investment relations with countries in that region.

As I execute my duties, I observed that Zimbabwe has both excellent and cordial relations with countries in the Middle East.

The President’s policies of Zimbabwe being a friend to all and an enemy to none, as well as Zimbabwe being open for business, have opened doors for our country to strengthen and consolidate relations with the Middle East.

There have been exchanges of high-level visits between Zimbabwe and some Middle Eastern countries; we have received several delegations from the region, who have expressed keen interest to invest in various sectors of the economy.

Zimbabwe and Middle Eastern countries are leveraging each other’s strength and capacities.

For instance, Zimbabwe has the much-needed natural resources and human capital, while countries such as the United Arab Emirates (UAE), the State of Qatar, the Kingdom of Saudi Arabia and the State of Kuwait have vast financial resources.

The Second Republic has redoubled efforts to attract massive investments from the Middle East in sectors such as mining, tourism, agriculture and manufacturing.

The relations between Zimbabwe and Middle Eastern countries continue to grow as the former seeks to increase trade and investment cooperation with the latter, and reduce dependence on the West.

Q: Are there specific sectors where Zimbabwe is looking to increase cooperation with the Middle East?

A: Zimbabwe wants to increase cooperation with these countries in various sectors such as mineral exploration, extraction and value addition, tourism, agriculture, energy, information and communication technology (ICT), labour recruitment and manpower development.

Q: What opportunities do you see for Middle Eastern investors in Zimbabwe, particularly in sectors like infrastructure, energy and agriculture?

A: There are huge investment opportunities in Zimbabwe for investors from the Middle East.

Regarding infrastructural development, the Second Republic is doing a lot in upgrading roads and developing other basic infrastructure.

We also need investors in the railway sector, where we need to upgrade our railway system. Given what most countries in the Middle East have done so far, Zimbabwe can benefit immensely from cooperation with these countries in terms of upgrading its rail infrastructure.

The Second Republic has also done a lot to upgrade the Robert Gabriel Mugabe International Airport.

This means we now need investors to come in and invest heavily in acquiring a large fleet of aeroplanes that can service many routes across the world.

Furthermore, most of the countries in the Middle East such as Kuwait, Qatar, Saudi Arabia and the UAE have world-class infrastructure and we can cooperate in that area for mutual benefit.

As you may be aware, rapid urbanisation has put significant pressure on infrastructure and resources in urban areas, limiting access to clean water, transportation, healthcare and education, leaving large populations vulnerable to the climate crisis.

At least half of the requirements needed to meet the challenges of rapid urbanisation in Zimbabwe remain unfunded due to climate change and unwarranted illegal sanctions imposed on the country.

Thus, cooperating with the Middle East in the field of infrastructure is one of the immediate opportunities for investors.

In the energy sector, Zimbabwe is experiencing continuous power cuts as a result of decreased water levels in Kariba Dam.

In order to address this, Zimbabwe needs to invest in solar power generation.

For the time being, we are partly relying on solar imports from other countries.

Zimbabwe should, therefore, establish industries that manufacture solar products such as solar panels, lithium and gel batteries, and solar inverters.

The Middle East has experienced the world’s second-fastest growth in renewable energy capacity since 2022, with some countries witnessing a 60 percent increase in solar and wind capacity in the last two years.

Investments in solar energy alone are set to triple by 2027 compared to the previous five years, presenting an opportunity for the region to diversify from fossil fuels.

Gulf Sovereign Wealth Funds, which collectively oversee US$3,7 trillion in assets, have recently turned their focus on renewables.

Thus, investors from the Middle East have a huge opportunity to invest in Zimbabwe’s energy sector.

Zimbabwe is one of Africa’s largest producers of agricultural products such as tobacco, vegetables, tomatoes, coffee, tea and citrus. To ensure that these agricultural products contribute directly to economic development, we need to invest heavily in value addition.

Thus, we need to attract investors who can establish industries that concentrate on value addition of the agricultural products.

This helps in promoting fast economic development, creation of jobs, reduction of imports and improved circulation of money in the domestic market.

In addition, fodder crops and red meat are in high demand in the Middle East.

Given our fertile land and favourable climate for both fodder and red meat production, this offers abundant opportunities for Middle East investors to invest here.

Investing in fodder crop farming creates jobs and brings in foreign currency, eventually promoting economic growth.

Q: You were also recently appointed chairperson of the Zimbabwe Forestry Commission. What role can the commission play in promoting forests conservation in Zimbabwe and leverage that to boost relations with the Middle East?

A: We need to exchange notes with Middle Eastern countries on many things such as forest conservation and value addition of forestry products.

Middle Eastern countries need to learn from us, while Zimbabwe should also learn a lot from them.

In that regard, we are embarking on a massive interaction with the relevant authorities in that region to discuss ways of promoting forest conservation and dealing with climate change.

The Middle East is known for its arid and desert landscapes, with very little natural forest cover.

Countries like the Kingdom of Saudi Arabia, the State of Kuwait and the Hashemite Kingdom of Jordan have limited forests, and those that do exist are often concentrated in mountainous or coastal areas.

In addition, these forests face extreme heat, low rainfall and high evaporation rates, making conservation efforts challenging.

 Despite these obstacles, there are growing efforts in the Middle East to preserve and restore forests, which are vital for biodiversity, water retention and combating climate change.

Some Middle Eastern countries have engaged in collaborative efforts to address transnational environmental challenges.

The Arab Forest Organisation, for example, promotes the sustainable management of forests across the Arab world, offering a platform for cooperation on forest policy, research and advocacy.

In 2021, Saudi Arabia launched the Green Middle East Initiative to plant 50 billion trees, and Jordan committed to planting 10 million in a decade.

 At COP26 (United Nations Climate Change Conference), the UAE pledged to plant 100 million mangrove trees, which help capture carbon and protect coastal areas, by 2030.

By spearheading the Mangrove Alliance for Climate (MAC), the UAE has worked to facilitate mangrove recovery and advance practical climate solutions.

Countries with larger forested areas like Turkey and Lebanon have increased their focus on sustainable forest management practices.

From these cases, you can see that a lot is being done by countries in the Middle East, and the Forestry Commission of Zimbabwe may need to work hand in hand with these nations.

As the chairperson of the Forestry Commission of Zimbabwe, I will facilitate a government-to-government collaboration, in consultation with our parent Ministry of Environment, Climate and Wildlife, to explore ways of cooperating with governments in the Middle East in the fields of environmental protection for mutual benefit.

Q: Are there any initiatives or partnerships between the Forestry Commission and Middle Eastern countries to tackle climate change and deforestation?

A: I have had negotiations with many investors from the Middle East and so far there are many proposals to establish partnerships that may promote value addition of Zimbabwe’s forestry products and forestry conservation.

Q: What challenges has the Forestry Commission been facing and how do you plan to rectify them?

A: The current rate of deforestation in Zimbabwe is estimated to be 330 000 hectares per annum on average.

This deforestation is driven mainly by agricultural expansion, urbanisation, illegal tree cutting for fuel and timber, infrastructural development and illegal land occupation.

Addressing these drivers of deforestation has been elusive mainly due to constraints alluded to earlier.

Climate change poses a significant threat to sustainable forest management in Zimbabwe owing to its impacts on tree planting, shifts in silvicultural zoning, increased incidences of destructive forest fires, and the advent of new forest pests and diseases.

The Forestry Commission would need to explore strategies to adapt to the changing climate to achieve sustainable forest management.