EUROPEAN investment in Africa and across the globe will be predicated on key principles, including good governance, independence of the judiciary, and respect for property rights, a top diplomat told journalists this week.
Addressing the media after attending the Southern African Development Community (SADC)-European Union (EU) Ministerial meeting in Harare last week, Polish Foreign Affairs Minister, Radosław Sikorski, underscored that taming inflation, upholding investor rights, and implementing a flexible tax regime, among other factors, would spur economic growth.
Poland is presiding over the EU Council presidency.
The diplomat added that Poland, which regained its independence from Russia in 1918, had experienced bouts of hyperinflation similar to Zimbabwe’s.
“We had hyperinflation too at the end of the communist era. In the last year of communism in 1989, our inflation was close to 1 000%. The following year, it was 800%. Now, we are one of the fastest-growing economies in the EU and have the lowest unemployment,” he said.
“The recipe for economic success is a very old one: peace, easy taxes, and the proper administration of justice. The best way to attract foreign investment is to treat your investors well. If you print too much currency, you will get inflation. So, you need to live within your means and balance the books. That is a universally applicable lesson.”
During the meeting, Sikorski added that the parties had sealed a raft of agreements worth over €160 million, covering a range of areas of mutual benefit. “We were able to agree on a 34-point statement on issues concerning SADC and the EU, as well as the international agenda. Several agreements—I think eight—were signed, totalling over €160 million,” Sikorski said.
“We also wanted to give new impetus to negotiations for the Partnership Agreement between the EU and SADC. The EU is supporting your projects. We are past colonial or post-colonial thinking.”
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He added: “We want to help you do what you want to do anyway. It is African countries that want to integrate their economies; it is African countries that want these infrastructure and transportation corridors.
“However, some of our assistance is based on certain principles, because we believe good governance is the foundation of economic development. For businesses to flourish, they must be able to enforce contracts. And to enforce contracts, you need an efficient and independent judiciary. Without that, neither your own people nor foreigners will invest.”
The diplomat’s comments come after the bloc launched the €300 billion EU Global Gateway initiative in 2021, aimed at boosting smart, clean, and secure connections in digital, energy, and transport sectors, as well as strengthening health, education, and research systems worldwide.
He said the EU was leveraging the Global Gateway initiative to deepen relations with like-minded partners across the globe, based on the “competitiveness” of the strategy.
“What we offer is competitive. We are a club of democratic nations. We believe that the rule of law works better than seeking immediate political advantage. But it is your judgement,” Sikorski noted.
Addressing the same press conference, the EU Ambassador to Zimbabwe, Jobst von Kirchmann, highlighted that clearing Zimbabwe’s US$21,7 billion debt would enhance the country’s chances of fully benefiting from the Global Gateway initiative, including unlocking fresh credit from global lenders.
He said: “The Global Gateway Fund has absolutely nothing to do with restrictions. However, limitations in the use of Global Gateway resources are linked to the fact that Zimbabwe currently has US$21,7 billion in arrears and debt.
“I always commend the initiative by His Excellency the President to resolve the arrears and debt through the arrears clearance platform. We actively support that and stand ready to continue supporting Zimbabwe to achieve this, because it will open the door for sovereign lending.”
In 2022, Zimbabwe, whose EU sanctions imposed in 2002 have been drastically eased, launched a debt clearance process led by the African Development Bank.
Global creditors, including the EU, have emphasised that it is crucial for the country to implement key reforms to clear its significant debt overhang.
