Nathan Guma
THE new United States ambassador to Zimbabwe Pamela Tremont says she will work with all sectors to promote economic growth and business ties between her country and Zimbabwe which is experiencing a decline in foreign direct investment (FDI) inflows.
World Bank data shows a decline in FDI into Zimbabwe which has been attributed to lack of democratic reform.
Zimbabwe’s re-engagement drive is facing an uphill task owing to discredited general elections and human rights abuses which have further deepened the socio-economic crisis leaving many reeling in poverty.
The US government has been Zimbabwe’s biggest donor since Independence in 1980, providing over US$5 billion in humanitarian, health, and development assistance. US$1 billion was disbursed in the last three years alone.
Tremont, who is replacing former ambassador Brian Nichols, said she is prepared to help improve the investment climate in Zimbabwe to expand economic opportunities while strengthening business ties with the US.
“As Ambassador, I will work with government, civil society, business, and local communities to encourage transparent, democratic institutions that respect the will of their people and create broad-based economic growth. We will pursue these mutual interests while respecting Zimbabwe’s sovereignty, so Zimbabweans can realise a better future for themselves,” she said.
“In my conversation with President Mnangagwa, I offered to collaborate on improving the investment climate in Zimbabwe to expand economic opportunities for people and communities, strengthen our business ties and attract investors to look closely at Zimbabwe’s educated labour force and long-term growth potential. But I can’t do this alone.”
Statistics from the World Bank have shown that Zimbabwe has been on a turbulent track since 2018, with consistency only being realised between 2010 and 2017.
Data by Comtrade, a United Nations commodity statistics trade database, has shown that the United States has been exporting to Zimbabwe, with net exports reaching US$37.3 million in 2023.
Zimbabwe has also been exporting to the United States, with exports from Zimbabwe reaching US$87.2 million in 2022 alone, according to an international trade database, the Observatory of Economic Complexity (OEC).
The new US envoy says strong democratic institutions are key for economic growth.
“But broad-based economic prosperity is impossible without strong democratic institutions, good public health, and regional security. The United States supports these things because they are critical elements for Zimbabweans to chart their own future,” Tremont said.
“The Zimbabwean government and people need to share their story that Zimbabwe is a good business partner that combats corruption; provides certainty in regulatory, monetary, and tax policy; and enjoys unbiased rule of law.”
American investments in Zimbabwe have been helping ease the effects of the socio-economic crisis with over 1.2 million Zimbabweans living with HIV receiving treatment through the US President’s Emergency Plan for Aids Relief (PEPFAR) programme.
The US is also assisting in demining programmes.
“Together, we are returning land to farmers that had been unsafe for communities and their livestock since your hard-fought liberation struggle,” Tremont said.
“But El Niño and its drought have made farming harder than usual this year. That is why I informed President Mnangagwa that in 2024 the U.S. people will give $62 million to the Zimbabwean people to counter the effects of the current drought in Zimbabwe.
“This funding, including $39 million of new money, will address short-term food insecurity and long-term strategies to improve agricultural practices and strengthen community resilience.”
Before last year’s general elections, the Zimbabwe and United States re-engagement process to restore normal diplomatic and economic relations was solid and promising.
However, after the elections, which were brazenly stolen amid daylight robbery and fraud, the US reviewed its position, withdrawing from the process.
Now the US wants to see key political and economic reforms before rejoining the debt resolution talks between Zimbabwe and multilateral lenders, with publicly guaranteed debt standing at US$17.7 billion, of which US$12.7 billion was external and US$5 billion domestic, as of September 2023.
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