On 17th October, Chinese Ambassador to Zimbabwe H.E. Guo Shaochun delivered a speech at the seminar on "Impact of Chinese Investment in Zimbabwe". The full text of the speech is as follows:
Hon. Amb. Frederick Shava, Minister of Foreign Affairs and International Trade,
Hon. Dr. Sekai Nzenza，Minister of Industry and Commerce,
Hon. Kindness Paradza, Deputy Minister of Information, Publicity and Broadcasting Services,
Hon. Clemence Chiduwa, Deputy Minister of Finance and Economic Development,
Hon. Polite Kambamura, Deputy Minister of Mines and Mining Development,
Hon. Amb. Christopher Mutsnanvawa,
Senior officials from Zimbabwean government, political parties,
Friends from enterprises, medias, think tanks and non-governmental organizations,
Ladies and Gentlemen,
Good morning!
It is my great pleasure to attend this Seminar and discuss with you about the “Impact of Chinese Investments in Zimbabwe”. I would like to start by thanking Hon. Minister Frederick Shava and Minister Sekai Nzenza for taking time off your busy schedule to grace this event. I also thank all the guests for your caring about and support for Chinese investment as well as your pertinent comments and proposals in today’s interactions.
The Chinese Embassy in Zimbabwe appreciates Ruzivo Media and Resource Center for managing such a constructive seminar, which serves as a platform for in-depth discussion and view exchanges on Chinese investments in Zimbabwe, so as to enhance our mutual understanding and further promote our cooperation. I believe this will encourage more well-established and capable Chinese companies to invest in Zimbabwe, help them to better integrate into the local community, improve their competitiveness and make more contribution to Vision 2030 of Zimbabwe.
This seminar is held at a very opportune time. Yesterday, the Communist Party of China successfully opened its 20th National Congress, which will chart the great course for the next phase of China’s development. China will continue to pursue opening-up against higher standards and develop new systems for a higher-level open economy. On the other side, Zimbabwe is committed to implementing its National Development Strategy1, the policy of “ Open For Business” has yielded significant outcomes, and vigorous progress has been made on the realization of Vision 2030. Both China and Zimbabwe are at a critical stage of national development and rejuvenation. We both hope to strengthen bilateral cooperation and tap into the potential of common development.
China is one of the largest investors in Africa. Over the past two decades since the establishment of FOCAC, the flow of China's direct investment in Africa has been growing by more than 25 percent on a yearly average. China's investment in Africa has kept increasing despite the impact of COVID-19 pandemic. In the first half of this year, China's investment in Africa hit $2.17 billion. Meanwhile, China is Zimbabwe's second largest trading partner and remains the biggest investor in Zimbabwe for many years. China’s direct investment stock in Zimbabwe has reached over $2 billion by the end of 2020 and is still rising. Last year, President Xi Jinping announced at the Eighth Ministerial Conference of FOCAC, that China will encourage its businesses to invest no less than 10 billion US dollars in Africa in the next three years, and will establish a platform for China-Africa private investment promotion. China will undertake 10 industrialization and employment promotion projects for Africa, provide credit facilities of 10 billion US dollars to African financial institutions, support the development of African SMEs on a priority basis, and establish a China-Africa cross-border RMB center.
The massive investment of Chinese enterprises in Zimbabwe started at the beginning of this century, when Zimbabwe was being subjected to unilateral and illegal sanctions imposed by the West, and Western investors collectively withdrew their capital from Zimbabwe. When the West chose to abandon, punish and humiliate Zimbabwe, China and Chinese enterprises chose to embrace Zimbabwe.
China's investment in Zimbabwe has made up for the shortage of funds and technology and other tough challenges faced by Zimbabwe's economy. In this process, Chinese enterprises have also gained opportunities for development. Our cooperation is highly complementary and mutually beneficial, which will deliver more tangible benefits to our peoples and support Zimbabwe to take an independent development path suitable to its national reality with more capabilities and confidence. No force, no smears can hold back the irreversible strides of China-Zimbabwe cooperation.
Ladies and Gentlemen,
China always follows the principle of sincerity, real results, amity and good faith and the principle of pursuing the greater good and shared interests when advancing China-Zimbabwe cooperation. It can be observed from three perspectives.
First, focus on development. Chinese investment mainly flows to infrastructure and production sectors. The China-financed or invested projects in Zimbabwe mostly cover electricity, airports and communication facilities, the areas most in need of development. Such projects have boosted economic growth, increased tax revenues, created jobs and improved people's livelihood in African countries including Zimbabwe, generating tangible benefits to African people.
The Chinese government has been encouraging Chinese companies to actively respond to Africa's development strategies and make contributions to independent and sustainable development of African countries. Objectives of China-Africa cooperation are always promoting the fundamental interests of our peoples and a shared future of China and African countries.
Second, adhere to recipient-driven approaches and the principles of openness and transparency. Chinese investment in Zimbabwe always stays committed to the principle of equal consultation, complies with the business rules and respects the independent choices of Zimbabwean government and Zimbabwean people. The projects to be invested and the profit sharing are all agreed by both sides under the principle of equality and mutual benefit, which are in line with Zimbabwe's laws and policies. Zimbabwe is a sovereign country with a complete legal system. Chinese companies cannot and will never make compulsive investment in Zimbabwe. The so called "looting resources" or "neocolonialism", are groundless accusations and slanders by a few people with ulterior motives.
China has never attached any political strings to its financing cooperation with Africa, never forced African countries to take out loans, and never pressed for debt service by any African country. Not a single African country slid into internal disorder or debt distress because of its cooperation with China. In fact, western capital, often in the forms of multilateral financial institutions and commercial creditors, are the largest creditors of African countries. According to a recent report released by UK-based charity Debt Justice, African governments owe three times more debt to Western private lenders than to China, and are charged double the interest. It’s much more expensive to borrow from Western commercial creditors than from China. Western commercial creditors and multilateral institutions, who hold the biggest share of debts, refuse to be part of the debt relief effort, citing a need to maintain their credit rating.
Chinese investment in Zimbabwe is always in the open. It’s always easy to find out where the funds are used and what benefits are generated. This is the best transparency. We support improving “transparency” of investment, but the “transparency” should be within the framework of the laws and regulations of the receiving countries. It should be the requirement applied equally to all foreign companies rather than to the Chinese companies alone. Any requirement only targeting Chinese enterprises is unfair and unacceptable.
Third, stay open and inclusive. Our cooperation will always stay open and inclusive. We welcome more countries and international organizations to participate in the economic development of Zimbabwe, especially in improving Zimbabwe’s infrastructure and people’s livelihood. To this end, China stays open to trilateral and multilateral cooperation with international society. There has been some successful practice. Sponsored by the China-established South-South Cooperation Assistance Fund, we worked with three UN agencies in Zimbabwe and rebuilt houses, schools and clinics destroyed by Cyclone Idai, and help the local communities get out of difficult positions. China welcomes more countries to become sincere development partners of Zimbabwe, but we are firmly opposed to any practice that meddles in Zimbabwe's internal affairs, tramples on Zimbabwe's sovereignty in the name of assistance, contains Zimbabwe’s economy growth and improvement of people's livelihood by sanctions or other coercive measures.
Ladies and Gentlemen,
China requests Zimbabwean authorities and public to observe the advantages and weakness of Chinese companies from an objective perspective. As the participants of China’s reform and opening up, Chinese companies have learned how to follow the market rules and pursued pragmatism and efficiency. They prioritize efficiency and usually prefer to working hard rather than leaving the investment idle. China has no history of invading and enslaving other countries, and Chinese people have natural friendly emotions towards African people. Last Saturday the Job Fair co-organized by the the Chamber of Chinese Enterprises and Stanbic Bank was successfully concluded with a great turnout. Over 30 Chinese companies received 1700 applications and will offer nearly 800 jobs to the applicants. As reliable partners of the local business, Chinese companies in Zimbabwe will continue to stay true in promoting China-Zimbabwe cooperation and create more benefits to Zimbabwean people.
We also face up to the shortcomings of Chinese companies. China is still a developing country, and Chinese companies are also in the process of growth and maturity. They still need to further draw lessons from advanced experience and focus on self-improvement. The Chinese government has always required the overseas Chinese enterprises to strictly comply with the laws and regulations of host countries, and fully respect local customs, traditions and cultures. The majority of Chinese companies in Zimbabwe have done a good job and are welcomed by the Zimbabwean government and the local people. Indeed, a few Chinese enterprises have some problems in their operation, but this does not represent the whole picture of Chinese investment, nor does it mean that the cooperation between China and African countries is being rejected. Some of these problems are caused by cultural differences, some are common issues in the relevant industry, some are resulted by the lack of management experiences, and some may indicate the laws and policies of the host country need further improvement. In February this year, proposed by the Chinese Embassy, the Chamber of Chinese Enterprises in Zimbabwe released a nine-point statements explaining how the local Chinese businesses should operate their business, which officially make clear the collective position of Chinese investment in Zimbabwe. China firmly supports the Zimbabwean government in developing a more robust legal and regulatory framework to ensure lawful practices by all foreign investors in Zimbabwe. Disputes related to the Chinese companies should be addressed through legal approach, rather than exaggerating the difference and stigmatizing the entire Chinese community. Political manipulation and unwarranted smearing with hidden political purpose against Chinese companies will ultimately hurt the interests of Zimbabwe itself. The Embassy will never shield any Chinese companies, but in the meantime will protect their legitimate rights and interests. Any hatred and discrimination against Chinese companies will be rejected by the Embassy. We sincerely hope Zimbabwe to continuously improve its laws and regulations to ensure better compliance, and strengthen law-enforcing supervision to urge foreign companies to make improvement and positively respond to reasonable social concerns.
Ladies and Gentlemen,
China encourages more well-established and capable Chinese companies to invest in Zimbabwe, contribute to Zimbabwe’s development, and improve the volume and quality of investment. We are pleased that Chinese private investments are becoming the vital forces in promoting Zimbabwe’s economy. The construction of Dinson Iron and Steel Company invested by China Tsingshan Corporation is well on track, which will be the largest steel manufacturer in Africa. Huayou, Sinomine and some other large Chinese private companies have invested in local lithium mines, and will make Zimbabwe an important link in the supply and industrial chain of new energy materials. Many Chinese companies have also invested in other sectors such as tobacco planting and export, crop farming, building materials manufacturing, and freight logistics. These investments introduce Zimbabwe’s high-quality products into international markets, bring Zimbabwe considerable foreign exchange earnings and tax revenues, tens of thousands of jobs and technology transfers.
Chinese government will continue to support Zimbabwe’s socioeconomic development within its best capacity. The National Pharmaceutical Warehouse has been handed over. The handover of the New Parliament Building and 500 boreholes will soon be witnessed. China will deepen intergovernmental practical cooperation with Zimbabwe. Projects such as Hwange Thermal Power Station Expansion, Expansion and Upgrading of the Robert Mugabe International Airport and Netone broadband construction are in good progress, which will improve Zimbabwe's infrastructure, capacity for independent development and environment for attracting more foreign investment. China and Zimbabwe are also exploring cooperation in satellite, e-commerce, health and other areas, and fostering new growth drivers in our bilateral cooperation. China will actively implement the Nine Programs of China-African cooperation and the Global Development Initiative proposed by President Xi Jinping. Zimbabwe is the member of the Group of Friends of the Global Development Initiative and one of the first beneficiary countries of the First-batch Projects of the Initiative. China is ready to work with Zimbabwe to make more achievements for our cooperation.
To conclude, I would like to extend my congratulations on the launching of the Ruzivo Media and Resource Center and thanks for its efforts to research the Impact of Chinese Investment in Zimbabwe. I also want to thank again all of guests here for your support for China-Zimbabwe cooperation. I hope that our cooperation will move forward to a higher level with higher quality, and support Zimbabwe to realize its Vision 2030 and national industrialization at an early date.
Thank you!
The seminar is organized by the Ruzivo Media and Resource Center under the theme of “Impact of Chinese Investment in Zimbabwe”. Hon. Frederick Shava, Minister of Foreign Affairs and International Trade and Hon. Sekai Nzenza，Minister of Industry and Commerce delivered keynote address at the seminar. Nearly 150 people attended this event, including Hon. Kindness Paradza, Deputy Minister of Information, Publicity and Broadcasting Services, Hon. Clemence Chiduwa, Deputy Minister of Finance and Economic Development, Hon. Polite Kambamura, Deputy Minister of Mines and Mining Development, other senior officials from the Zimbabwean government and political parties and representatives from the business society, medias, think tanks and non-governmental organizations and diplomatic corps.