Zim to get 5,8m euro for regional integration

Published: 25 June 2014

Zimbabwe is set to receive 5,8 million euro from the European Union through the Common Market for East and Southern Africa as part of efforts to enhance the country's regional economic integration, an official said today.

Speaking at the second consultative workshop for the cotton-to-clothing strategy, UN economic corporation attache Ana Pena said the funds will be availed under the Comesa-led Regional Integration Support Programme (RISP) and the Regional Integration Support Mechanism (RISM).

"Regional intergration is the only way for Zimbabwe to develop and we are working with the Ministry of Industry to make sure that the country's capacity in regional integration is enhanced.

"Under RISP-Comesa Zimbabwe will benefit 4,8million euro as part of a programme to support regional economic integration. An additional 1 million euro will come from the RISM-Comesa for the implementation of the Interim Economic Partnership Agreement that was signed in 2012," she said.

She said the Ministry of Industry and Commerce was working with Comesa on the implementation of the RISM programme which money would be made available to Zimbabwe as soon as negotiations are complete.

Speaking at the same event, African Cotton and Textile Industries Federation executive director Rajeev Arora said active participation in regional integration would increase inflows of foreign direct investment for the country grow the cotton to clothing sector.

He said Zimbabwe should, however, not focus on producing cotton only but should increase value addition to grow the value chain.

"Africa produces about 5 percent of the world's cotton, with over 65 percent of that coming from West Africa of which over 80 percent is exported in raw form. Limited value addition presents a big opportunity for textile investment. There is great opportunity in the Zimbabwean cotton and textile industry only if policies are aligned to the needs of the interested investors," he said.

He said the country is the biggest cotton producer in Southern Africa but is exporting the bulk of its cotton raw.

Arora added that Zimbabwe should also take advantage of the duty free quota free access into United States for garment exports under AGOA, into EU for textile products through the EPA and regional markets through Comesa, the East African Community (EAC), Economic Community of West African States (Ecowas), and the Southern African Development Community (Sadc).
- BH24

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