Saturday, January 04, 2014

'Zimbabwe-European Union Relations on the Mend'

‘Zim-EU relations on the mend’

January 4, 2014 Opinion & Analysis
Victoria Ruzvidzo The Interview

The changing global dynamics are also expected to usher in a new dimension in terms of the groupings relations with ACP and its peers. It is with this in mind that The Herald Managing Editor Victoria Ruzvidzo (VR) had an opportunity to discuss these and other issues with Zimbabwe’s Ambassador to Belgium, Netherlands and Luxembourg Ms Margaret Mary Muchada (MM) in Brussels recently. She has been instrumental in pacifying relations with the EU.

VR: Zimbabwe and the European Union have not been the best of friends in the last few years, how would you describe relations presently?

MM: We have gone quite some mileage in our relationship with the EU. For six months they would not recognise my appointment when I came here but we have been building our relationship bit-by-bit over the past few years.

We have nursed our challenges and now we have become working partners. We are really working to improve the Zimbabwe/EU relations and since I came we have had two meetings on re- engagement.

VR: What is the evidence that indeed relations are improving?

MM: Although there is still a long way to go, some companies and individuals have been removed from the sanctions list and already the EU is doing business with some of these.

The ZMDC was removed and now Zimbabwe is able to trade its diamonds here at Antwerp.

Furthermore, the Joint Parliamentary Assembly (ACP-EU) has asked for a fact-finding mission to Zimbabwe scheduled for January. They want to come to Zimbabwe and see developments for themselves so that they can come up with a more informed picture of the country. They have a wrong picture…they do not understand that we are living peacefully so we can come off Article 96 completely.

VR: But what guarantee is there that when they come they will send in a good word to the world out there that reflects the true picture about Zimbabwe given the EU’s seeming bias all along?

MM: My own ACP members are aware of developments back home so at least there will be a voice of reason on the delegation.

But indeed with the EU itself we have had our fights but we are now trying to pacify the situation. There has been so much misrepresentation in the media about Zimbabwe and it is difficult for them to conceptualise anything that is not sinister about Zimbabwe.

However, I firmly believe that when they come to Zimbabwe they will see for themselves what the country is like and draw their own conclusion. Presently if you ask them to draw a Zimbabwean they will draw a devil but things are not like that.

VR: We have witnessed growing interest by investors from this part of the world (EU) to do business with Zimbabwe, how then does that add up?

MM: Indeed the Western business community see the opportunities in Zimbabwe and wants to benefit from them.

They are presently urging their governments to open doors for them. As you are aware Antwerp has also begun to accept Zimbabwe’s diamonds. This is a major step.

They (Western businesses) really want to come but we must not get too excited about the whole thing. Lets be cautious in our approach.

VR: Zimbabwe is an active member of the ACP group of countries. How has this helped leverage its position on the global stage particularly within the ACP-EU framework?

MM: For Zimbabwe first and foremost the ACP is the largest group of developing countries that has had a relationship with the EU for this long. We are quite a force to reckon with. They (EU) want raw materials and partnerships and as a group we have clout on multilateral issues.

Zimbabwe has been under Article 96 measures which have restricted us from benefiting from the EDF (European Development Fund) facilities. However, they have now reduced the number of companies and individuals on their list.

Because of this, Zimbabwe is working to ensure we benefit from the 11th EDF. Its about the goodwill that the partnership can leverage on.

Because of this we are now able to trade our diamonds. There are other bilateral and multi-lateral benefits that should accrue from this. In all this, the ACP has been on our side, to foster re-engagement with the EU. The ACP did a good elections report on the July 31 harmonised elections which they shared with the EU.

VR: In terms of trade, the issue of the Economic Partnership Agreements (EPAs) has been a contentious one between the EU and the ACP, how is it playing out, especially where Zimbabwe is concerned?

MM: Zimbabwe is implementing an interim EPA. Its part and parcel of the trade mix but it requires additional support so we operate at optimum levels. Under this arrangement there should be assistance to strengthen value chains.

Recently we had a delegation from Finance and other officials of the EDF. We had discussions with other regional players from Comesa, Central Africa and other parts of the region.

Some of the EDF funds are administered at regional level and Zimbabwe falls under Comesa for this part of the programme.

VR: The recently held ACP Council of Ministers Meeting deliberated on future relations between the ACP and EU, whats your take on this one?

MM: Come 2020, the Contonou arrangement between the EU and ACP will come to an end and already the ACP is looking into the future.

True, we have a very good relationship with the EU but as the ACP we envisage a new relationship in which we have a say as equal partners. The future may entail increased South-South cooperation and intra-ACP trading.

We envisage a North-South relationship which is well-structured. This should then help us find a way forward in which we are all looking forward. We believe the EU are a group with which we can still do business with but we need to ensure that we are also growing economically.

VR: So, given these developments, what were the key issues that Zimbabwe and the rest of the ACP family deliberated on at the Council of Ministers meeting?

MM: Discussions largely centred on the 2014 budget. With effect from January 2014 we begin the 11th EDF. This has administration procedures that differ from what we have been doing and this creates a new menu for the ACP and EU.

VR: What were the issues here?

MM: We have been experiencing late disbursements of funds and we wanted this sorted out. Furthermore, the term of the ACP administration (Secretariat) ends in 2015 and this has its own financial implications.

We also need to prepare for the ACP-EU Heads of State and Governments meeting scheduled for April hence we have been discussing some of the issues to be deliberated on there. Africa is the largest group within the ACP. Out of 82 members, 55 are from the continent.

VR: Coming to local efforts to prop the economy, what are your thoughts on the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset)?

MM: Zim-Asset provides a clear guide to all players. I believe that the Government has come up with a very thoughtful vision of the way in which we should proceed in the various sectors.

My passion is in agriculture and if we can implement the value addition programmes, then we would have addressed food security and poverty alleviation with one stone. Value chains that include producers will enable farmers to realise more money from their crops. For instance, maize and wheat producers cry foul about the price of these crops because they sell them as raw produce, but if they were to sell flour and mealie meal, they would make more money.

Likewise, if they could preserve most of what they produce e.g. fruits and horticulture produce, they would sell at competitive rates throughout the year.

Therefore, the intention of the value addition programmes should be to ensure that farmers get as near as possible to their consumers and benefit alongside agro processors.

VR: Your parting shot?

MM: Zimbabwe is making significant headway on the international stage and we should keep the momentum. Lets consolidate re-engagement with our partners, in this instance the EU, as we seek to re-establish our rightful position and grow our economy. Other partners also seem keen to do business with Zimbabwe.

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