Zimbabwe Seeks Enhanced Investment Ties with China
Zimbabwe is poised to secure further investment deals from China, building on a successful five-year partnership that has seen over US$3.4 billion in investments across various sectors of its economy.
President Emmerson Mnangagwa, who arrived in China yesterday, is set to tour major companies, including telecommunications giant Huawei and the leading electronic and automobile firm BYD. BYD’s expertise is pivotal for exploiting Zimbabwe’s vast lithium reserves, promoting local beneficiation and value addition for the benefit of Zimbabweans.
As part of its modernization efforts, Zimbabwe is currently rehabilitating its infrastructure. President Mnangagwa is scheduled to meet with officials from China Rails Group, who have completed feasibility studies in collaboration with the National Railways of Zimbabwe (NRZ) to refurbish the country’s rail infrastructure.
In an interview, Zimbabwe’s Ambassador to China, Abigail Shonhiwa, highlighted the significant opportunities presented by the President’s visit. “The President has a very hectic programme. We are in Shenzhen right now, and he will visit two other provinces before September 2nd. The schedule is a mix of business engagements and cultural activities,” she stated.
Ambassador Shonhiwa noted that Mnangagwa’s last visit to China five years ago sparked interest among Chinese companies, leading to substantial investments in Zimbabwe. “This State Visit is crucial, coming almost five years after the last one, which unlocked numerous investment opportunities. We are optimistic about attracting even more investors this time,” she added.
Under President Mnangagwa’s leadership, trade with China has surged, with private sector investments skyrocketing from US$445.9 million in 2019 to US$3.4 billion in 2023, marking a remarkable seven-fold increase. Recent Chinese investments have primarily targeted the mining and manufacturing sectors, with notable projects such as:
– US$1.5 billion in the Manhize Dinson Iron and Steel Project
– Investments in Afrochine Ferrochrome Smelters, Sinomine Resources, Zhejiang Huayon Cobalt, and Chengxin Lithium Group.
To date, 472 investment licenses have been issued to Chinese companies, with more expected.
China’s ongoing support has solidified its status as Zimbabwe’s “all-weather friend,” with bilateral relations yielding substantial benefits, including concessional funding for projects in energy, telecommunications, agriculture, defense, and health. Major Chinese-led projects include:
– Hwange Thermal Power Station Units 7 and 8 (US$997 million)
– Kariba South Hydro Power Station (US$533 million)
– Expansions of Robert Gabriel Mugabe International Airport (US$153 million) and Victoria Falls Airport (US$150 million).
Additionally, China has played a vital role in constructing key national projects, such as the Parliament Building in Mt Hampden (US$140 million) and the National Pharmaceutical High-Performance Centre. The two nations also collaborate extensively in health and agriculture, with China providing significant support during the COVID-19 pandemic, including drilling boreholes across Zimbabwe.
President Mnangagwa, accompanied by Cabinet Ministers and senior government officials, is scheduled to visit Changsha in Hunan Province and Nanjing in Jiangsu Province. After concluding his business engagements, he will proceed to Beijing for a State visit and later join other heads of state at the triennial Forum on China-Africa Cooperation (FOCAC) from September 4 to 6.
