Zim-EU trade on track to hit US$1bn: EU Ambassador

LIVINGSTONE MARUFU

Zimbabwe’s trade ties with the European Union (EU) are on a steep upward trajectory, with bilateral trade and investment projected to hit US$1 billion within the next few years. Thanks to a warming diplomatic climate and sweeping trade liberalisation efforts, Zimbabwean exporters are now tapping into one of the world’s most lucrative markets—duty-free. As momentum builds, both sides are bullish on the long-term potential of this revitalised economic partnership.

EU Ambassador to Zimbabwe, Jobst von Kirchmann, delivered an optimistic outlook on Zimbabwe-EU trade relations, underpinned by a dramatic improvement in trade and investment flows over the past three years.

“I am confident that we will reach our next goal in a couple of years of US$1bn in trade and foreign direct investment to Zimbabwe. We are not far off, and Team Europe will continue its effort to reach this milestone,” von Kirchmann declared.

According to official EU statistics, trade between Zimbabwe and the bloc has grown by 30%, while foreign direct investment (FDI) has surged by a staggering 90%, now reaching US$870 million. Trade volumes currently sit at US$880 million, highlighting the pace of transformation since Brussels relaxed its stance on Harare and introduced friendlier trade policies.

Ambassador von Kirchmann emphasized that Zimbabwean companies now enjoy unprecedented access to the EU market under the Economic Partnership Agreement (EPA), which guarantees duty-free and quota-free exports to the EU. “Any local company can export any product to the EU without tariffs or duties,” he said, describing this arrangement as a game-changer for local businesses eager to scale up their international operations.

This level of access comes at a time when global trade is becoming increasingly fragmented, particularly following recent tariff escalations by the United States under former President Donald Trump. Those measures, seen in many quarters as protectionist and regressive, have been described as potential barriers to trade. Against this backdrop, the EU’s open-door policy toward Zimbabwe provides exporters with a rare competitive advantage.

“Let’s look at the progress of our partnership between Team Europe—EU member states present in our bank, the European Investment Bank—and Zimbabwe over the last three years,” von Kirchmann said. “We have a 90% increase in EU investments in Zimbabwe, now reaching US$870m. We have a 30% increase in trade, now at US$880m, and over US$500m in development projects run by Team Europe and also humanitarian aid.”

He added that these initiatives are designed to support a broad spectrum of economic actors including women, youth, small and medium enterprises, and farmers—creating ripple effects across Zimbabwe’s economic landscape.

The EU remains a critical buyer of Zimbabwe’s horticultural exports, which include berries, citrus fruits, and macadamia nuts. Von Kirchmann noted that over 40% of Zimbabwe’s horticultural produce is absorbed by EU markets, positioning the bloc as Zimbabwe’s single largest buyer in this category. “Zimbabwe is exporting more to the EU than it is importing,” von Kirchmann said, highlighting a rare trade surplus in favour of Zimbabwe.

In terms of overall trade rankings, the EU is Zimbabwe’s fourth-largest trading partner, with total annual trade volumes exceeding €700 million. While South Africa, China, and the United Arab Emirates dominate the top three spots, the EU’s share is expanding rapidly, particularly in agro-based sectors and green energy technologies.

Despite the zero-tariff privileges offered under the EPA, many Zimbabwean businesses remain unaware of these trade opportunities. Ambassador von Kirchmann stressed the need for a targeted awareness campaign to bridge this information gap. “We need to create awareness among Zimbabwean companies of their full duty-free access to the European market. These benefits remain underutilised,” he said.

To that end, the EU is investing in local capacity-building initiatives and technical assistance programmes aimed at improving export readiness. In addition, the European Investment Bank has launched a €60 million lending facility to empower the private sector, with low-interest, long-term loans geared toward industrialisation, job creation and export expansion.

Since 1981, the EU has maintained an uninterrupted partnership with Zimbabwe, offering both development aid and humanitarian assistance through periods of economic turbulence and political uncertainty. This long-standing cooperation has been underpinned by shared values, mutual respect and a collective vision for a more inclusive and prosperous future.

“This partnership is grounded in shared values, mutual respect, and a common vision for a more prosperous and equitable future for both Zimbabwean and European societies,” von Kirchmann said.

One recent example of this cooperation was the EU’s emergency support during Zimbabwe’s drought crisis last year. “I think we were a reliable partner in many ways to support Zimbabwe in that difficult moment,” von Kirchmann added. “We are also working closely with the government to contribute to what I call a fertile ground for investment through good governance approaches.”

The deepening Zimbabwe-EU economic cooperation is well aligned with Zimbabwe’s National Development Strategy 1 (NDS1), which outlines the country’s ambition to achieve upper-middle-income status by 2030. The EU has pledged to walk this journey with Zimbabwe, investing in sectors that directly contribute to sustainable growth, including agriculture, manufacturing, and renewable energy.

Foreign Affairs and International Trade Deputy Minister Sheilla Chikomo commended the strengthening ties during the Europe Day event. “It is something to be applauded and I am excited because today is a special day, and in 11 days we will be having a business forum. So this is a great milestone,” Chikomo said.

The EU-Zimbabwe Business Forum, scheduled for May 20–22 in Harare, is expected to further cement commercial ties. Co-hosted by the Zimbabwe Investment and Development Agency (ZIDA), ZimTrade and the Confederation of Zimbabwe Industries (CZI), the event will bring together European and Zimbabwean investors, businesses and public institutions.

Ambassador von Kirchmann described the event as a “good moment” to bring European companies into the country and showcase Zimbabwe’s potential. “We have identified value chains where Zimbabwe has a genuine interest and where Europe also sees potential,” he said.

Key sectors identified for collaboration include agriculture and agro-processing, particularly in the production and export of berries, citrus, and macadamia nuts. Renewable energy is another area of focus, with increasing interest in solar and off-grid solutions that can bridge Zimbabwe’s energy supply gaps. Mining, too, is receiving attention—not just for extraction but for beneficiation, as stakeholders on both sides seek to add value to raw materials before they are exported.

The forum is expected to feature high-level panel discussions, business matchmaking sessions, and exhibitions—creating a platform for dialogue, deals, and new investment pledges. According to diplomats and business leaders, the timing of this forum could not be more critical. Zimbabwe’s government has recently rolled out a series of economic reforms aimed at improving the ease of doing business, stabilising the macroeconomic environment, and attracting foreign capital.

The EU’s current development strategy in Zimbabwe recognises the private sector as the principal engine for economic growth. Through blended finance instruments, technical assistance and trade facilitation measures, the bloc is nurturing Zimbabwean entrepreneurs and exporters to participate more meaningfully in global value chains.

This approach is in line with global development priorities that stress private investment, innovation and market-based solutions over traditional aid models. The EU’s €60 million facility through the European Investment Bank is a case in point—unlocking credit for firms that are otherwise excluded from the financial system due to high interest rates or lack of collateral.

Beyond Zimbabwe, the EU’s increasing engagement is seen as a bridge to broader trade integration within the African Continental Free Trade Area (AfCFTA). By building a robust trade corridor with Zimbabwe, the EU also positions itself to access wider regional markets through Zimbabwe’s strategic geographic location and regional trade agreements.

This potential for regional impact makes Zimbabwe a compelling trade and investment destination, especially as the country continues to reform its business environment and improve regulatory transparency. Many European investors see Zimbabwe as a springboard into the southern African region, and the business forum could accelerate that trend.

The momentum behind Zimbabwe-EU trade and investment relations is undeniable. With bilateral trade on the brink of hitting the US$1 billion milestone, and duty-free access already in place, Zimbabwe stands at a strategic crossroads of opportunity. What remains is for local firms to capitalise on the window that has been opened.

As Ambassador von Kirchmann aptly summarised, “We are not far off—and Team Europe will continue its effort to reach this milestone.”

With strategic sectors identified, funding mechanisms unlocked, and political will on both sides, the stage is set for Zimbabwe to reassert itself as a vital trading partner on the international stage—beginning with Europe.

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