Financial Times FT.com

Zimbabwe power struggle

South Africa to sign deal with Zimbabwe

By Richard Lapper in Johannesburg

Published: November 6 2009 17:18 | Last updated: November 6 2009 17:18

South Africa is close to signing a bilateral investment treaty with Zimbabwe, paving the way for what could be a sharp increase in private sector investment in its troubled northern neighbour, according to officials in both countries.

The treaty would provide mechanisms to help resolve disputes and sharply reduce the price of political risk insurance, helping ease concerns about Zimbabwe’s political stability that have inhibited investment despite interest from South African groups ranging from mining companies to banks and retailers.

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