THE United States (US) was among 26 foreign countries that participated at the 64th edition of the Zimbabwe International Trade Fair, which ended in Bulawayo last week. Our business editor Mthandazo Nyoni (MN) had a one-on-one interview with Elaine French (EF, pictured), Chargé d’Affaires, a.i. at the US Embassy in Zimbabwe, during the course of the fair, to talk about a number of issues including sanctions, investment, and the recent deportation of US Agency for International Development (USAid) officials. Find below excerpts of the interview:
MN: What would you say about the current state of relations between Washington and Harare? Are you content with things as they are?
EF: I think in terms of talking about US/Zimbabwe relations, I would like to go back to a year ago today versus now. I was here for the first time at ZITF last year. And honestly, a lot has really happened.
President Joe Biden of the United States announced a sanctions transition in early March. And recently, President Emmerson Mnangagwa declared a drought disaster emergency. So, there have really been quite a lot of things that have occurred between the US and Zimbabwe in terms of how we are engaging and cooperating as well.
At the end of the day our policy really has not changed over the last year, we continue to urge the government to take key steps on open, accountable, democratic governance with a focus on trying to address corruption in the country so that all Zimbabweans have the opportunity to prosper in the country.
MN: What should these two countries do to improve their relations?
EF: I think the US is doing a lot in Zimbabwe. When we look at just these last few months alone, the US recommitted to assisting Zimbabwe in its fight against HIV. We have announced new funding, so we have committed US$209 million through our President's Emergency Plan for Aids Relief (PEPFAR) programme to work with the government and implementing partners on addressing the HIV epidemic.
We also in January provided an additional US$11 million in lean season assistance that goes to the World Food Programme to help 230 000 of the most vulnerable people in the country in the driest, hardest parts, to survive during the initial parts of this drought.
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And we continue to do a lot with exchanges. We have currently 100 Zimbabweans engaged in exchange programmes with the US and kind of traveling and taking part in different activities in the US.
A lot of what we are doing here this year at the ZITF is really highlighting a lot of that assistance, those programmes and those exchanges. We think they are really important and these are the things that I think are central to that assistance to the people.
MN: Kindly comment on the current trade between Zimbabwe and the US. Is there room for improvement?
EF: In 2022, foreign direct investment from the US to Zimbabwe was US$238 million. That is not insignificant. I think that is actually quite a large sum of money. But actually, it falls short of the FDI (foreign direct investment) going into many of Zimbabwe's neighbours, and really falls short of the investment that was going into Zimbabwe in the past.
So, I think there is a lot more we can do. There are a lot of opportunities. We are doing a lot with our department of commerce trying to engage American business and American investors, trying to explain to them the opportunities here. And we are doing programmes like matchmaking, where we connect US business with local business here in Zimbabwe.
We also do company promotions. Last month we did a company promotion in Harare for an up-and-coming technology company from the US interested in connecting and investing in Zimbabwe. We also work with the American Chamber of Commerce.
It is fairly new. It was launched just over a year ago. The American Chamber of Commerce in any country is usually private sector-led. I think there is a lot we are doing, but there is a lot more opportunity to expand that as well, going forward.
MN: Which specific areas are you targeting?
EF: With US business in general, we do not decide where or when they invest, but I think some of the key areas that we see interest, which I think are some of the biggest areas in Zimbabwe, are agriculture, mining, and tourism. They are some of the largest kinds of growing areas for Zimbabwe and I think they offer the largest potential and possibility for the future.
MN: What else have you done?
EF: We have helped parts of the Zimbabwe government and partners clear 75 000 landmines. We have provided nearly US$30 million over the last decade plus and that has allowed 3 600 acres of land to be kind of returned to the communities and the people to be put back into productive use. When we talk about our assistance, it is not just on health, it is not just on aid, but it is really trying to enhance the prosperity of the people, whether it is with regards to agriculture or letting them live healthy lives.
MN: Let us talk about the Zimbabwe Democracy and Economic Recovery Act (Zidera), which is still in force.
EF: Zidera is one of the least understood parts of US policy in Zimbabwe. Zidera was imposed by the US congress in 2001. Zidera is not a sanction. Zidera has never been invoked or imposed. Zidera requires that the US not support new funding from the World Bank and International Monetary Fund.
Zimbabwe has arrears and debt and because of that, no new requests have ever been made. Zimbabwe was already in default before Zidera was put in place in 2001. There is a very clear roadmap in terms of how to address the Zidera criteria. Once Zimbabwe clears its arrears and debt, we can look at how we address the issue.
But this is why the African Development Bank (AfDB) facilitated dialogue that started in December of 2022 is so important. It has clear indicators in governance, economic issues, and land reform that directly address some of the Zidera criteria.
This is why we have been committed to the AfDB process. We want to see progress there because we feel that it is the best way to clear Zidera with the US congress. Zidera plays absolutely no role in hampering investment or trade. And any company that believes it does, we are happy to engage with and explain what the facts are and what Zidera is and is not. But it has no role in stopping or preventing any trade or investment in Zimbabwe.
MN: Oh, is that so?
EF: Honestly, it is one of the least understood parts and I often hear it across the board. It can be from other diplomats to governments, to journalists. They don't always understand Zidera. But we are doing our best to make sure people understand what its role is.
MN: Since the announcement of the Executive Order ending the national emergency on the situation in Zimbabwe, have any US companies shown interest in investing in Zimbabwe?
EF: We already have US businesses investing in Zimbabwe and we continue to have interest from US businesses and investment. But as I mentioned, US business make the decision of where and when they want to invest. US businesses have interests in mining, agriculture and tourism. I think it is a growing potential in Zimbabwe. But US companies are going to look at the risk factors. They are going to look at the situation on the ground and in particular, they are going to look at things like political stability, how they can repatriate their profits, as well as other factors.
MN: Are US prospective investors happy about Zimbabwe’s current investment environment?
EF: I think Zimbabwe offers many commercial opportunities, but economic policy and corruption are going to play a role in the business environment and are going to play a role in whether US businesses decide to come here or they decide to go to Mozambique, or Zambia, or Botswana.
MN: Last month, Zimbabwean authorities detained officials of the US Agency for International Development (USAid) before deporting them. Will USAid continue with its programmes?
EF: Washington takes these sort of situations very seriously. They sometimes create problems for the relationship. The manner in which it happened was unacceptable. The individuals were admitted legally into the country. The government was notified of their visit. Every country has the right to deny entry into their country, but when somebody has been legally admitted into their country, and then they are detained and forcibly removed from the country overnight with no explanation, we find those actions unacceptable.
