On April 12th, Chinese Ambassador to Zimbabwe H.E. Zhou Ding gave an interview with the Zimbabwe Independent chief reporter Tinashe Kairiza, sharing his views on a wide-ranging topics regarding to China-Zimbabwe relations and practical cooperation between the two countries.
TK: China is currently rolling out multi billion dollar infrastructure projects in Zimbabwe, what is China’s assessment of Zimbabwe as an investment destination?
ZD: China and Zimbabwe enjoy a long-standing friendship dating back to the period of Zimbabwe’s liberation struggle in the 1960s and 1970s. The two countries established diplomatic relations on April 18th, 1980, the day of Zimbabwe's independence. Under the strategic guidance of H.E President Xi Jinping and H.E President Mnangagwa, our Comprehensive Strategic Partnership of Cooperation has kept being strengthened, yielding fruitful results. In recent years, China has consistently remained as Zimbabwe's largest source of foreign investment and major trading partner. The key projects built with Chinese government concessional loans, including Hwange Power Station Expansion Project Unit 7&8, Kariba South Power Station Expansion Project, Expansion of the Robert Gabriel Mugabe International Airport Project, Victoria Falls Airport Upgrading Project among others. They have played important roles in dealing with power shortages, improving transportation and energy infrastructures in Zimbabwe. Zimbabwe is a charming land with excellent climate conditions and abundant natural resources. President Mnangagwa has implemented the mantra of “Zimbabwe is open to business”, and striving to optimize Zimbabwe’s business environment. As a result, a large amount of international capital, including those from China, has poured into Zimbabwe, making it one of the most dynamic economies in Africa. I believe that Zimbabwe still holds tremendous potential in terms of attracting foreign investments and has broad prospects in developing its economy.
TK: What challenges are Chinese investors facing?
ZD: Investments by Chinese companies in Zimbabwe are very diversified, active in various sectors such as energy and power, mining, manufacturing, agriculture, construction and services. Chinese investments have made tremendous contribution to Zimbabwe’s economic and social progress. However, there are also challenges and obstacles facing Chinese investors. Issues like currency devaluation, high inflation as well as sometimes inconsistent tax policies impose significant financial burdens to investors. The stagnate global market, the dropping of the international prices of key minerals including lithium and platinum poses great challenges to the investors and the mining sector of Zimbabwe.
In addition, power shortages and inadequate infrastructures are also leading to reduced productivity and increased operation cost.
TK: Will Chinese investors continue to set up?
ZD: I believe that all the challenges and difficulties are surmountable. I believe that the economic and trade relations between our two countries enjoy bright prospects. Chinese investments will definitely continue to make greater contribution to Zimbabwe’s industrialization, modernization and the realization of Vision 2030.
TK: Zimbabwe is currently under Western imposed sanctions. How can Zimbabwe leverage on its mineral wealth to fix its economy?
ZD: The illegal sanctions imposed on Zimbabwe have been in place for more than 20 years, seriously damaging Zimbabwe’s economy. China firmly opposes any unilateral sanctions and supports the Zimbabwe in safeguarding its sovereignty and its right to development. Mining sector accounts for about 13% of Zimbabwe’s GDP and serves as an engine for growth. The lithium mining industry is growing rapidly, offering Zimbabwe an opportunity to take up a position in the global new energy industry chain. However, Rome was not built in one day. As I have mentioned, we are also facing some difficulties both home and abroad. While the global market is declining, the new energy sector keeps transforming and relevant technology remains evolving. I believe that the Zimbabwean government will continue to make effort to create a favorable business environment to make effort to create a favourable business environment to make the mining sector bigger and stronger. And I hope that the Chinese companies will continue their investments in Zimbabwe’s mining sector, based on Zimbabwe’s needs and market principle.
TK: There have been reports that Chinese investors are flouting the country’s investment regulations. What steps has the Chinese government taken to ensure that its nationals adhere to Zimbabwe’s laws?
ZD: I would like to reiterate that the Chinese Government consistently requires Chinese enterprises overseas to abide by the laws and policies of the host countries including Zimbabwe. According to Zimbabwean government’s assessment and our embassy’s observation, the majority of Chinese companies operating in Zimbabwe are law-abiding and conscientious corporate citizens welcomed by government and local people.
Indeed, there are very few Chinese investors having some problems in their operations. But they do not represent the whole picture of Chinese investment, and should not be used to negate Chinese companies’ contribution to the development of Zimbabwe.
The relevant disputes should be addressed through legal approach, rather than being exaggerated and used as a tool to stigmatize the entire Chinese business community, even China.
In recent years, we have noticed that some people have kept smearing China-Zimbabwe cooperation and even fabricating lies to attack Chinese enterprises. After the investigation and verification conducted by relevant government agencies, media and our embassy, most of the negative reports about Chinese enterprises were unsubstantiated and exaggerated.
I have to say that the unwarranted smearing, sometimes with hidden political purposes against China and Chinese companies will ultimately hurt the interests of Zimbabwe.
TK: How do you deal with bad apples?
ZD: The Chinese government and our embassy never tolerate or shield any ill-behaved entities or individuals, in the meantime we are obliged to protect all the investors’ legitimate rights and interests. I am happy to see that the Zimbabwean government is endeavoring to create a fair, orderly, and competitive market environment while strengthening its law enforcement to ensure better compliance.
China has provided support and assistance to Zimbabwe to the best of its capacity. China has been one of the largest grants and assistance providers for Zimbabwe and has supported Zimbabwe from infrastructure building to food and equipment assistance, from agricultural to the medical sector.
In the past five years, China has assisted Zimbabwe in building some of the monumental projects with grants, such as the new parliament building, the National Pharmaceutical Warehouse, and the High-Performance Computing Center for Zimbabwe.
To address Zimbabwe’s food shortage caused by draught and Cyclone Idai, China has aided over 1000 boreholes across the country, bringing access to clean drinking water for more than one million people. This year China will install another 300 boreholes.
China has also supplied over 10 deliveries of food assistance to Zimbabwe, of which the latest including 2000 tons of rice and wheat, was handed over in June 2023.
A new batch of 2000 tons of rice will be delivered soon to counter the food shortage caused by severe drought. Chinese agricultural experts have been working diligently in Zimbabwe to expedite poverty reduction, by setting up demonstration villages, providing technical services and training for local farmers.
TK: Which other areas has China focused on?
ZD: In the medical sector, China has provided 12 million doses of COVID-19 vaccines and sent an emergency medical team to Zimbabwe to help fight against the pandemic. Chinese medical teams have been working here for almost 40 years and carrying out free medical services for Zimbabwean people.
China’s assistance focuses on promoting Zimbabwe’s economic progress and people’s livelihood, responding to Zimbabwe’s needs. China prioritizes mutual coordination, implementation management, supervision and evaluation to ensure the assistance and grants are being utilized correctly and efficiently.
To maintain the credibility of China-aid projects and increase their overall efficiency, Chinese government pays close attention to the construction and operation of the projects. China also provides technical training to ensure proper project management and maintenance by local people.