NDAMU SANDU
The Zimbabwe Investment and Development Agency (ZIDA) licensed 160 investors from China in the first half of the year up from 53 in the same period in 2022, latest data shows, underlining the Asian giant’s stranglehold on foreign direct investment inflows to Zimbabwe.
The Chinese investments have a projected value of 948.67m, accounting for the lion’s share of the total projected investment value US$1.835bn.
In the first half of the year in 2022, Chinese investments had a projected investment value of US$939.50m.
China has been Zimbabwe’s all weather friend since the turn of the millennium. Harare looked East at the turn of the millennium after it broke ranks with western capitals over governance deficit and human rights violations.
India came second on the list of licensed investors at 24 with a projected investment value of US$27.01m
ZIDA licensed 18 local investors with a projected value of US$222.53 in the first half of the year.
“In 2022, licences were issued to investors from 22 countries including Zimbabwe. In the first half of 2023 the Agency managed to draw investors from 32 countries. During both periods, China had the highest number of investors and investment value by a considerable margin with mining being the most preferred sector followed by the manufacturing sector,” ZIDA said in a Q2 2023 report.
ZIDA said the global boom in demand for energy has seen an increase in the number of investor inquiries into the sector.
“In Q2 2023, 68% of projected investment value for all licences were issued in the energy sector. The highest projection for investment was from Zhongjin Heli Energy (Pvt) which proposed to bring US$400 million towards coal mining and thermal power generation in the Matabeleland North province. This is expected to eventually lead to increased power generation and reduction of the power supply deficit should all the projects be implemented as planned,” the Agency said.
Foreign Affairs and International Trade minister Frederick Shava told the Zimbabwe-China Business Forum that the Asian giant continues to be Zimbabwe’s top source of Foreign Direct Investment in sectors such as mining, manufacturing, agriculture, construction, transport, and tourism.
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 goods 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.
