South Africa and Australia have agreed on projects to help rebuild Zimbabwe, Australian Foreign Minister Stephen Smith said in Pretoria on Tuesday.

"We have agreed on projects to help Zimbabwe with taxation laws as well as water and sanitation technical expertise," he told a press briefing.

He said that Zimbabwe needed technical expertise to reform its tax laws and build the economy.

Smith said Australia's long-standing view about Zimbabwe's President Robert Mugabe was to see the veteran leader vacating office. He said that political developments in that country were encouraging.

"South African government efforts to see progress in Zimbabwe have encouraged the Australian government to partner it..."

Smith was speaking after meeting his South African counterpart Maite Nkoana-Mashabane to strengthen relations between the two countries.

Nkoana-Mashabane said that Australia's Labour Party and the African National Congress had relations dating back to the fight against apartheid.

"We have a good relationship and need to strengthen the political ties, as well as economic ties between our governments."

She encouraged Australian businesses to invest in South Africa.