EU envoys signal renewed confidence in Zimbabwe's economy

Diplomats from some of Zimbabwe's long-time critics have offered a rare vote of confidence in the country's economic outlook, pointing to improving stability while urging sustained reforms to unlock investment.

The remarks come amid growing interest from European governments and businesses, which say recent macro-economic gains are beginning to reposition Zimbabwe as a potential investment destination.

Christoph Retzlaff, Germany's ambassador to Zimbabwe, said recent progress had put the country back on investors' radar.

"Zimbabwe has seen some good macroeconomic progress in the last couple of months. That is encouraging," he said, adding that Germany could become a key partner if reforms continue.

Retzlaff noted that global supply chain shifts could benefit African economies, but stressed that policy consistency would be critical.

"We need predictability, transparency, less red tape and political stability," he said.

A German mining-focused market exploration mission is expected in August, highlighting growing interest in Zimbabwe's resource sector.

Giuseppe Giacalone, Italy's envoy, also expressed optimism, pointing to existing investments by Italian firms, including projects by WeBuild Group.

"My impression is very positive… WeBuild Group has built many dams in the country, starting from Kariba and now working on another major project in the south," he said.

Giacalone identified agriculture, infrastructure, technology and education as key areas for expanded cooperation between Italy and Zimbabwe.

Meanwhile, Katrin Hagemann said trade between Zimbabwe and the European Union continues to grow under the Economic Partnership Agreement.

"With trade reaching US$919 million last year, we are closing in on the US$1 billion mark — driving jobs and growth," she said.

The agreement, in force since 2012, gives Zimbabwe duty-free and quota-free access to the EU's 27-member market, making the bloc the country's largest export destination for horticultural products such as blueberries, citrus and peas.

To broaden participation beyond the current base of exporters, the EU is rolling out a €7.8 million horticulture support programme, alongside financing initiatives backed by institutions like the European Investment Bank and Proparco.

Over the past five years, these institutions have channelled more than US$100 million into Zimbabwe's banking sector under the EU's Global Gateway strategy, which supports infrastructure, trade and sustainable development projects, including the rehabilitation of Kariba Dam.

Despite the renewed optimism, diplomats cautioned that sustained capital inflows will depend on Harare delivering on long-promised structural reforms, particularly around policy predictability and the ease of doing business.