by Virginia Muwanigwa
This is the last in a Jour-part series on trade issues in southern Africa Despite regional lobbying for the Trade Protocol which was finally signed at the SADC Summit in Lesotho, some breakthroughs have been made in some bi-lateral negotiations involving South Africa and its neighbours
“Both bilateral and multilateral negotiations and agreements are being entered into and agreed to between South Africa and various countries of the region, said Nelson Mandela, President of South Africa when he visited Zimbabwe to attend President Robert Mugabe’s wedding. Mandela cited the agreement between Zimbabwean Minister of Industry and Commerce, Nathan Shamuyarira, and his South African counterpart, Alex Erwin which he described as “a very important trade agreement”.
The agreement, a result of drawn-out negotiations, will see Zimbabwean textiles and clothing exported to South Africa at tariff rates reduced from 90 percent to 30 percent. It is expected that the deal will be signed next month, making South African markets accessible for Zimbabwean manufacturers.
The Herald, a Zimbabwean daily, reports that part of the agreement will see locally produced yarn enjoying a preferential tariff rate of 14 percent with fabrics at 19.5 percent. Other household textiles such as carpets and curtains will be 24.5 percent. Quotas for Zimbabwean clothing imports to South Africa will be set at 3.5 million units.
Meanwhile, discussions are still continuing between the other technical committees where the agriculture working group reports progress on, among others, sanitary and veterinary regulations. Also agreed to between the two countries is the exploring .of joint ventures, new investment and purchasing initiatives.
With the signing of the agreements, hopes have been revived that thousands of Zimbabwean textile and other jobs will be secured. It is reported that 31 local clothing firms have folded since January 1995 laying off several thousand workers.
Encouraged by the agreement between Zimbabwe and South Africa, Zambia thought it would also be able to secure a similar deal but this was disputed by South African officials, although negotiations are stilI continuing.
In apparent retaliation to South Africa’s reluctance to concede to its request for a preferential trade agreement, Zambia has hinted that it will not sign the much-touted water protocol which South Africa has been pushing to have finalized so it can have access to more regional water resources.
South Africa is one of the SADC countries which, despite its own valuable resources, suffers from Inadequate supplies, hence its 10 eagerness to have the protocol signed.
Last year, nine of the SADC member countries — Botswana, Lesotho, Namibia, Malawi, Mozambique, Swaziland, South Africa, Tanzania and Zimbabwe — signed the protocol on “Shared Water Course Systems” over rivers running through the region. The protocol seeks to ensure increased measures for the optimal utilization and conservation of shared watercourse systems in the region.
Two countries, Angola and Zambia did not sign the protocol and asked the meeting to allow them time to conduct internal consultations. It would now appear that Zambia wants a trade-off between the water protocol and a trade agreement. In June this year, business representatives from Zambia and Zimbabwe signed a co-operation agreement through the Zimbabwe National Chamber of Commerce and the Zambia Association of Chambers of Commerce and Industry that will see an improvement in trade relations.
Trade relations between the two countries have sometimes been confrontational with Zambia accusing the other of unfair trade practices despite having unrestrained access to its markets. In 1994, Zimbabwe’s exports to Zambia was US$515 million while it imported only $55 million worth of goods.
Elsewhere in the region, a bilateral trade agreement between Namibia and Zimbabwe has seen an increase in trade between the two countries. Zimbabwean exports saw a 700 percent increase to $176 million and imports tripled to $63 million.
The Namibia Review, a Namibian monthly magazine, reports that Zimbabwe exports include beef, milk, sugar, refrigerators, clothing, footwear, chickens, machinery and building materials. Namibia, on the other hand, exports fish, salt, meat, beer and other beverages to Zimbabwe.
In 1994, an agreement was reached to increase Zimbabwean fish imports from 30000 to 50 000 tons per year. Despite the increase, Namibia’s exports to Zimbabwe are less than one percent of its total exports.
Wilfred Emvula, Namibia’s Deputy Minister for Trade and Industry, says trade with Zimbabwe is cheaper than with all other southern African countries but Namibian business people were hesitant to increase trade. A possible deterrent factor has been highlighted as the mandatory local content requirement for imports and exports.
Potential for increased trade, however, exists. The Permanent Secretary in the Namibian trade ministry Hano Rumpf says, “Countries should no longer be looked at in isolation. They complement each other and create a favourable environment to attract investments for the sub-region.”(SARDC)
