The Sunday Mail
Kuda Bwititi Sunday Mail Reporter
Energy and telecommunications projects under the economic co-operation agreements signed between Zimbabwe and China could create 20 000 jobs over the next three years, findings from a US government-funded research body indicate.A leading local capital and investment management expert has also projected that the deals will result in GDP increasing from the current US$12 billion to US$20 billion in the medium term.
Of these jobs, over 16 535 will be created through the Gwayi energy and water project and the Kariba South power extension project.
The US$2 billion Gwayi project alone will employ 13 336 workers and Kariba South 1 699.
In addition, the emergence of downstream industries linked to the two projects will result in 1 500 jobs being created.
Another 3 000 jobs will spring out of the telecommunications, construction, manufacturing and retail sectors.
The findings are contained in a model adapted from the US Natural Resources Energy Laboratory Research Institute. Brainworks Capital — a local capital management and investment company — validated the data.
Brainworks chief executive officer Mr George Manyere told The Sunday Mail that most of the jobs would be created around construction, equipment installation and related services.
Mr Manyere said, “My overall assessment is that these mega-deals signed in China by His Excellency, Cde RG Mugabe, have strong potential to lay a solid foundation for a significant turnaround of our economy. “They can be a catalyst in growing Zimbabwe’s GDP beyond US$20 billion by 2018 from the current US$12 billion. The deals are a welcome development in Zimbabwe given the state of the following sectors: energy, water, logistics and communication. These sectors are the enabling sectors that form the backbone of any economy in the developed world.
“Key in turning around the Zimbabwe economy is ensuring that these projects are carried out and completed to induce the secondary effects/multiplier effects in other sectors.”
Mr Manyere said the deals were geared towards easy implementation. “The private sector rarely invests in such huge projects, hence the onus is left on Government to play a leading role in these projects. The fact that the Chinese government agreed to fund these projects is also a testimony of the viability of the projects on a long term basis.
“These deals are structured on a typical project finance basis, which is the best way to structure these deals and achieve success in their implementation.” Late last month, Zimbabwe and China signed major economic deals aimed at stimulating development through infrastructure upgrades. The agreements cover water, energy, infrastructure, roads, telecommunications, and agriculture.
At The Herald Business breakfast meeting in Harare last Wednesday, Finance and Economic Development Minister Patrick Chinamasa said Government prioritised these sectors as they were of immediate importance to economic turnaround. The deals are driven by the Industrial and Commercial Bank of China — one of the world’s largest financial institutions — and they key state-funded insurance company Sinosure.
