China invests US$2.7bn, becomes Zim’s top FDI source

BUSINESS REPORTER

China has invested US$2.7bn in the past four years in Zimbabwe, thanks to strong relations between Harare and Beijing, Foreign Affairs and International Trade minister Frederick Shava has said.

Zimbabwe looked East at the turn of the millennium after falling out of favour with western capitals over human rights violations and the fast-track land reform programme.

In his remarks at the Zimbabwe-China Business Forum in Beijing on Monday, Shava said cooperation between Zimbabwe and the Asian giant dates backs from the liberation struggle and were elevated to a Comprehensive Strategic Partnership during President Emmerson Mnangagwa’s State Visit to China in 2018.

He said China continues to be Zimbabwe’s top source of Foreign Direct Investment in sectors such as mining, manufacturing, agriculture, construction, transport, and tourism.

“Over the past four years, China has invested approximately US$2.7bn in Zimbabwe and, on our part, we have issued close to 400 investment licences to Chinese companies. This has contributed significantly to Zimbabwe’s economic growth through employment creation, infrastructure development and modernisation of the mining, manufacturing and agriculture sectors,” Shava said.

He said bilateral trade between China and Zimbabwe has continued to expand as a result of the two countries’ collective efforts.

Last year, Zimbabwe imported good worth US$1.125bn from China that included machinery, pharmaceuticals, pesticides and vehicles, among others. Exports to China were US$1.3bn. This meant that Zimbabwe recorded a trade surplus of US$175m.

Exports to China included tobacco, iron and steel, edible fruits, leather and leather products, ferro-alloys and chromium ore.

“China is undoubtedly becoming one of Zimbabwe’s top export destinations as it is currently the third-largest importer of Zimbabwean goods. Potential for increased trade volumes with China still exists,” Shava said.

The Asian giant has become an all-weather for African countries due to its governance neutral approach which found takers with the continent’s leaders.

Critics say Chinese loans have seen a number of African countries stewing in debt.

 

 

 

 

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