The Sunday Mail
Kuda Bwititi Chief Reporter
Another mega deal signed between Zimbabwe and China in 2015 has been actualised, with Baic Automotive Group releasing US$20 million for recapitalisation of bus manufacturer AVM Africa. The deal is among several steered through by Presidents Mugabe and Xi Jinping in Harare during the Chinese leader’s historic visit to Zimbabwe in 2015.
Other major economic agreements nearing fruition include the US$1 billion Hwange Thermal Power Station expansion project and construction of a new Parliament building in Mt Hampden.
For AVM, Baic will provide equipment and automated technology for bus, tractors and truck manufacturing; and also fund retooling, assembly kits and plant rehabilitation.
AVM Africa — one of Zimbabwe’s foremost bus and heavy vehicle manufacturers — is projected to reach full capacity in the next three years thanks to deal.
Over 2 000 jobs will also be created before December 2018, with more employment opportunities emerging as production improves.
AVM targets producing 1 000 buses, 500 tractors and 300-plus trucks per year.
AVM Africa executive chairman Mr Kenneth Musanhi told The Sunday Mail last week, “We held talks with a high-powered delegation from Baic’s headquarters in China, and struck an agreement under which they will provide us with capital amounting to US$20 million.
“This capital will see the Chinese bringing all the machinery we need to manufacture buses, tractors and trucks. However, buses will remain our major focus.”
Baic GM (Zimbabwe) Mr Wang Hefeng weighed in: “We held very fruitful meetings with a team of high-ranking officials from Baic’s headquarters in China. We agreed to start the partnership with AVM Africa by injecting capital and supplying equipment. So, it was very good progress.”
Mr Musanhi said AVM would send a team to China to finalise terms of the agreement and sort out logistical issues.
“We want to set everything in place so that production starts in January 2017. Tractor manufacturing will also be a positive development for our economy. This is in line with revamping the agriculture sector. The country has been relying on tractor imports for a long time now, but we are going to be doing the production on our own.
“What is also important to note is that in terms of quality, the buses, tractors and trucks that we produce locally are more durable and better suited to our roads.”
Welfare Services for War Veterans, War Collaborators, Former Political Detainees and Restrictees Minister, Retired Colonel Tshinga Dube, recently said the deal would empower ex-combatants.
Veterans of Zimbabwe’s liberation struggle have a 19 percent stake in the joint venture.
Said the minister: “This is going to be a breakthrough deal in terms of embarking on commercial projects to enhance our financial independence and reduce the burden of support from Treasury.”
