The Sunday Mail
TWELVE years after adopting the Look East Policy, the signing of 12 mega deals worth several billions of dollars during Chinese President Xi Jinping’s state visit last week marked the highest level of engagement between the Asian country and Zimbabwe.
President Xi said complementing each other economically and political trust are the salient aspects of the nations’ bilateral relationship.
This bond is an anti-thesis of the country’s relations with the West, whose economic sanctions have stifled the nation’s economic growth since the turn of the millennium.
Since 2001 when the Zimbabwe Democracy and Economic Recovery Act (Zidera) was passed, Zimbabwe has been struggling to get meaningful investments in the key economic enabling sectors such as power and infrastructure.
However, 12 years of pursuing the Look East policy have now climaxed in major investment deals that have the potential to transform the economy in a few years’ time.
All well-meaning Zimbabweans are celebrating the Sino-Zimbabwe deals, and rightly so as this is an opportunity that should not be wasted.
Amidst all this, concerns linger over some corrupt elements who might be readying themselves to plunder the resources.
The “it is our turn to loot” syndrome should be consigned to history.
Sleaze is the biggest vice gripping this country and has diminished its chances of a quick economic turnaround.
Government needs to stamp its authority on corruption, especially at this point in the country’s history so that the implementation of these deals brings a marked difference in economic activity in due course.
President Xi’s government does not tolerate corruption in whatever form and as such, those who were caught on the wrong side of the law are languishing in prison.
China offers a comprehensive legal framework in both the public and private sectors to criminalise corrupt practices such as facilitation payments, money laundering, active and passive bribery.
In line with the anti-corruption campaign, anti-bribery laws targeting corporate and individual offenders have been crafted.
The legislation covers criminal bribery offences and there is also the Anti-Unfair Competition Law which focuses on commercial bribery.
Punitive measures range from fines to capital punishment, depending on the severity of the case.
In Zimbabwe, there are reports of individuals and companies offering ‘gifts’ to officials in the public and private spheres in return for favours.
All this must stop.
We can copy from China.
The penchant of abusing resources that are meant for investment projects needs to stop.
Only last year, the City of Harare acquired 25 luxury vehicles including Land Rovers and Range Rovers with part of the US$144,4 million loan from China which was meant for water and sewerage reticulation.
Government needs to ensure that people with chequered corporate governance records are nowhere near the national purse.
Authorities also need to work on improving the ease of doing business in the country so that it does not lose potential investors and revenue. lnefficient regulations and red tape may lead to corruption.
Zimbabwe National Chamber of Commerce (ZNCC) chief executive, Mr Takunda Mugaga said corruption is a reality in Zimbabwe.
“I am sure the Government is committed to stamping it out. To me, the major source of concern is on who should drive the implementation drive of signed agreements.
“lt is vital for Government to allow the private sector to play a serious role in partnering the Chinese, politicians should not dictate the pace,” said Mr Mugaga.
Deals signed include financing for the construction of a new Parliament building, expansion of Hwange Thermal Power Station, a pharmaceutical warehouse, expansion of TelOne’s national fibre optic broadband project and provision of wildlife monitoring equipment.
Very soon, China is expected to start rolling out loans to the tune of US$1,1 billion for Hwange Thermal Power Station and the broadband project.
Former Zimbabwe Ambassador to China and War Veterans Minister Christopher Mutsvangwa told The Sunday Mail Business that the country is poised for phenomenal growth after cementing its relations with China through the mega deals.
“China is now the world’s second largest economy. It is vaunted with manufacturing prowess and a growing middle class that now outranks Western Europe in the number of millionaires,” he said.
However, Minister Mutsvangwa said like any other businesspeople, Chinese investors need to be handheld until they get their footing in the country.
“Chinese are businesspeople like any other. Their Zimbabwean counterparts – public and private – must handhold the Chinese investors, assure them of good returns and offer necessary investment incentives.”
Minister Mutsvangwa said the country must brace for more Chinese investors who may be keen to escape ballooning production costs back home due to economic “prosperity”.
He said Zimbabwe should “take advantage of relocating Chinese firms” as some industrialists might be eager to exploit abundant skills available.
