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Mr Philippe Van Damme

Prosper Ndlovu Business Editor
NEWLY appointed European Union (EU) Ambassador to Zimbabwe Philippe Van Damme has urged Zimbabwean businesses to tap into the lucrative Western market saying the 28 member bloc was open for trade deals with local firms.Van Damme told journalists in Bulawayo on Monday evening that the recent lifting of trade sanctions on Harare was a giant step in building sound economic partnerships and normalising relations between the two parties.

He lauded Zimbabwe’s economic potential and said given sufficient support, local businesses can increase exports to the EU market.

“Export to the EU market is completely free. What’s lacking is a regular supply of guaranteed quality products that meet the expected standards,” said Van Damme.

“You need to get your transport system right, volumes and regularity of supply that satisfies the market requirements.”

He said Zimbabwe has a thriving SMEs sector with the potential to expand the productive sector and supply international markets.

“There’s no fatality, you’ve small to  medium enterprises, not only big  enterprises, which took up the challenge of meeting European standards and  managed to export to EU. If SMEs can  do it, everyone can do it.

“I can testify in my stay for the last month that you’ve incredibly tasty fruits and tasty meat. So if you had this supply chain 20 years ago, you can again export to EU and assist the government,” said Van Damme.

The Belgian born envoy said increased agricultural production, both crop and livestock would give the desired boost in manufacturing growth.

“The agriculture potential of this country by far exceeds subsistence. This country can export to the sub-region and the entire world. We need to work on value addition of our products along the value chain,” he said.

Van Damme said aid financing was not the panacea for revival of industries and called for improved ease of doing business to attract foreign direct investment.

He said luring investment by its nature was sensitive to socio-political and economic systems of countries.

The envoy hailed progress made in the country’s governance system after adoption of the new constitution last year and applauded the existence of a skilled human resource as a springboard for economic development.

He said no one would challenge the indigenisation laws of Zimbabwe as it is a sovereign country but urged the government to clarify its provisions to ensure investor confidence.

“Nobody challenges the sovereignty of the country but an investor needs legal predictability to be able to invest.  He wants a level playing field.
“To this end constitutional alignment of laws is very critical to allow correct application of law,” added Van Damme.

He reiterated the bloc’s commitment to avail $300 million at the beginning of 2015 to finance food and security projects, health and governance in line with the country’s development agenda, Zim-Asset.

Van Damme said the EU hopes to facilitate increased funding to the country as engagement processes improve between now and 2020.

He said while President Mugabe and the First Lady, Dr Grace remained under travel sanctions, it was subject to review when the bloc meets in February next year.

“There’s a need for further confidence building measures on both parties. Engagement allows us to take some of these steps to enhance mutual confidence,”   he said.