Government has approved the signing of a Bilateral Investment Promotion and Protection Agreement (BIPPA) between Zimbabwe and Botswana in a move expected to unlock a 500 million pula credit line to local industry.
The long awaited approval of the signing of a BIPPA between Botswana and Zimbabwe is expected to enhance investor confidence in the country as a safe and viable investment destination by guaranteeing safety of investments against expropriation and nationalisation as well as providing procedures for compensation in the event of non-compliance.
Economic Planning and Investment Promotion Minister, Mr Tapiwa Mashakada said government will now convene negotiations with the Botswana government for the signing of the BIPPA.
CZI President, Mr Joseph Kanye Kanye said the BIPPA will mutually benefit both countries.
â€œThe BIPPA will benefit both Zimbabwean and Tswana firms in need of funds for equity participation as well as financing working capital requirements,â€ he said.Â Â
Mr Kanyekanye said the association has already formulated a template on how industry will access the funds.
The BIPPA will afford local companies in the red to access the 500 million pula credit lines.
After concluding the Botswana deal, government is now expected to make follow ups on a ZAR2 billion pledge by South Africa.
An estimated US$2 billion cash injection is required to boost capacity utilisation to 100%.Â Â Â Â Â