The Sunday Mail
Stories by Tinashe Farawo
DURING his short stint as Deputy Prime Minister, Professor Arthur Mutambara once made a brilliant observation. He said, “As long as you are clever as a nation, you should be able to extract and unlock value from the relationship with China . . . Most of the criticisms of the Chinese in Africa are initiated by their competitors from Europe and America. Africans are being used to do the bidding for them.”
Today many are in agreement with the professor.
When President Mugabe adopted the Look East policy, critics did not support the move.
Britain and her allies had just imposed illegal economic sanctions on Zimbabwe.
During that period, the Bretton Woods institutions, which had traditionally supported Zimbabwe, stopped financing developmental projects in protest to the historic land reform programme which saw more than 300 000 landless Zimbabweans resettled.
The Look East Policy heralded a new era in the country’s history and today, more Chinese investors continue to troop into Zimbabwe.
The Asian giant’s economy is growing fast and establishing synergies with many countries.
The Chinese have shown commitment to do business with Zimbabwe and they have penetrated all local sectors of the economy. Various partnerships with parastatals and private companies have been established.
This relationship has seen the Chinese sinking billions of dollars in different investments that were cemented by President Xi Jinping during his visit in December last year.
Cultural exchange and trade investment promotion agreements have been signed between Harare and Beijing, resulting in increased movement of people between the two countries.
Figures do not lie, statistics have shown that trade volume between the two countries rose from $191 million in 2002 to more than a billion in 2014.
China is now one of the country’s biggest trade partners with most of Zimbabwe’s produce destined for the Asian giant.
The Chinese are helping the country to get maximum benefits from its resources. Zimbabwe is emphasising on value addition in line with the country’s economic blue print – Zim Asset.
As such, tobacco and timber are now being processed before exportation to China where there is a ready market.
In tobacco farming, most local farmers entered into contract farming with Asian firms.
They have also invested in agricultural mechanisation and irrigation in support of the land reform programme.
The Chinese will also be setting up agricultural demonstration centres and experimental farms throughout the country in the next decade.
The centres will share farming expertise and provision of training for Zimbabweans.
ln mining, Government has been pushing for the establishment of a platinum processing plant while there are plans to polish at least 10 percent of the country’s diamonds before exporting them.
Among the recent major investments, the Asian giant has invested in the energy industry where its companies are partnering local companies. The Kariba Hydro Power Station is now 39 percent complete after the Chinese sank more than $300 million into the project.
A further $1,2 billion will also be channelled towards the Hwange Thermal Power Station unit seven and eight which on completion will add 600 megawatts to the national grid.
China’s Export and Import Bank has been providing various loans and these has kept the country going during the difficult years.
Telecommunications have seen companies such Huawei partnering NetOne and other private companies in support of the country’s ICT.
Indeed the Chinese have been our all weather friends since the days of the liberation struggle. They have participated in infrastructure development – the construction of roads, schools and hospitals.
China sinks $US50 million in FDI
CHINA sank at least $46,5 million in Foreign Direct Investment to Zimbabwe between January and November 2015 with indications that the figure will balloon this year following the signing of various deals during President Xi Jinping’s recent visit.
Zimbabwe adopted the Look East Policy more than a decade ago and over the past few years, China has emerged as the country’s biggest investor.
According to information obtained from the Chinese Embassy in Harare last week, nearly $50 million in FDI had been pumped into the country’s economy as of November 2015.
“From January to November 2015, Zimbabwe received US$46.53 million from China in FDI,” said an official from the Chinese embassy’s department of trade.
The FDI was mainly driven by mining, infrastructure development, tourism and services.
lnvestors have been showing interest in energy and mining.
Between 1980 and 2013, the country received more than $1,8 billion in FDI.
Statistics from the Zimbabwe Investment Authority revealed that China is the country’s biggest investor as it accounted for 74 percent of the FDI during the first half of 2015.
Two years ago, ZIA approved $929m of FDI with more than half of it coming from China.
China has invested millions of dollars in the country’s various sectors.
Among them is the Harare water systems upgrade, the Kariba South extension project which is expected to add 300 mega watts to the national grid on completion and the Victoria Fall International Airport expansion.
According to 2013 trade statistics, the country’s exports to the Asian giant stood at $688 million, while China’s exports to the country were at $414 million.
Last week, Macro-Economic and Investment Promotion permanent secretary, Dr Desire Sibanda told The Sunday Mail there are indications that the figure will rise this year following the signing of various agreements over the past year.
“With the introduction of the Special Economic Zones, China is poised to be our main investment destination and results are there for all to see,” he said.
Dr Sibanda said the Chinese have indicated that they will continue to invest in various sectors of the economy.
“Those agreements that we have been signing over the last months will definitely increase FDI, and we are pushing the Chinese model of Special Economic Zones to push economic development through provinces and districts,” he said.
