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Vice President Cde Emmerson Mnangagwa recently concluded a five-day official visit to China, which provided an opportunity to explore trade and investment opportunities for Zimbabwe. Manica Post Editor Hatred Zenenga (HZ) reviews the visit in a question and answer session with Zimbabwe’s Ambassador to China Paul Chikawa (PC).

HZ. The Vice President Cde Emmerson Mnangagwa recently concluded his five-day visit to China, how would you describe the visit, in other words, was it of any benefit, and if so in what way?
PC. Thank you. The recent 5-day visit to the People’s Republic of China by Honourable Vice President E.D. Mnangagwa, at the invitation of the Communist Party of China (CPC) has seen the renewal, reaffirmation, consolidation and deepening of the already excellent political ties between the two ruling parties. Related to this point, the visit therefore, provided an opportunity for the two sides to promote relations in an all-round manner; that is covering a wide scope of interests including people-to-people exchanges and, most importantly, economic relations.

This was so as Honourable Vice President Mnangagwa also had the occasion to meet with Chinese Government leaders that included the State Vice President H.E. Li Yuanchao, the NDRC Chairman, H.E. Xu Shaoshi and some enterprises, just to mention a few. I am therefore, of the humble and well-considered opinion that the visit was beneficial and especially if viewed in the context of His Excellency President Mugabe’s epochal ‘Look East Policy’ and the Chinese President H.E. Xi Jinping’s several initiatives that include the ‘One Road and One

HZ. What do the several MOUs signed between Zimbabwe and China, and witnessed by the VP mean to Zimbabwe? Will they translate into something concrete?
PC. As sure as the sun rises from the East and sets in the West, the several MOUs signed on the occasion of this visit will translate into concrete and mutually-beneficial results for both sides. A look into history will help illustrate the point: when about 16 years, ago His Excellency President Mugabe espoused the Look East Policy, China was just among those countries with economic interests in Zimbabwe. Over the years and buttressed by the Forum on China and Africa Cooperation (FOCAC) inaugurated in 2000, China has become a significant and major economic player not only in Zimbabwe but all over the continent.

For instance, when His Excellency President Mugabe pronounced the Look East Policy and when FOCAC was formed, trade between China and Africa was less than US$10 billion but today this figure has exponentially risen to almost US$300 billion thereby making China Africa’s largest single trading partner. Over the same period, China has also become Africa’s largest Foreign Direct Investor. I am sure that a discussion with our own Zimbabwe Investment Authority (ZIA) will indicate and reaffirm China’s premier standing with regards to inbound FDI into Zimbabwe.

HZ. The VP in the meeting with his Chinese counterpart, requested to have the RMB/Yuan used as a legal tender in Zimbabwe, why, especially when the RMB is not in the basket of international currencies?
PC. Our quest to use the Yuan or Renminbi is one that is supported by both empirical evidence and a clear and discernible trajectory that has seen Beijing rise to become the second largest economy in GDP terms and, accordingly to Purchasing Parity Terms, actually number one. Associated with this has been a rise in the use of the Chinese currency in trade settlement, currency swaps and so forth. A check of world trade statistics will show that China is now the largest trading nation in overall terms and perhaps number one exporter and second importer globally. In simple terms this can only mean an inevitable rise in the use of the RMB.

To this end, I wish to quote the sitting IMF Managing Director, Mrs. Christine Lagarde who stated that ‘it was not a question of if but when the Chinese currency would become an SDR.’ As you would know, currently, there are only four currencies in the IMF’s Special Drawing Rights (SDR) — the USD, Pound Sterling, Euro and Japanese Yen. If one considers Mrs. Lagarde’s views above, it is therefore only a question of time before the Yuan is included in the SDR. I personally think this will be sooner rather than later. Against this backdrop, it can only be right and correct to place ourselves in a vantage point with regards to the Yuan. I must stress that this is a commercial decision and in any case, the Yuan is already included in our current multicurrency regime.

HZ. Does Zimbabwe hold any strategic advantage in Africa to attract foreign direct investment from China?
PC. While Zimbabwe does not compete against any nation in luring not only Chinese investments, but from elsewhere. It is also a fact that Zimbabwe has special attributes that are unique to us and us only. These range from our vast natural resources endowments, a fantastic human resource base, key and vital geo-strategic location on the continent and, our time-honoured and tested excellent political and social ties with China. I believe that, with a correct combination of opportunity, potential and policy mix, Zimbabwe enjoys quite some natural advantages with regards to the attraction of Chinese investments. Having said this, we do not rest on our laurels and take things for granted and, as I already said, we do not compete, in a negative sense with other countries, but we simply seek to work on our business environment for purposes of engendering a win-win scenario between us and investors from China as indeed should be the case from elsewhere for as long as there is sincerity and mutual trust.

HZ. What is the perception of Chinese investors on Zimbabwe as an investment destination? are Zimbabwe’s conditions attractive enough to lure more investment from China?
PC. To some extent I have alluded to some aspects of this question suffice to say in general the Chinese investors are happy with the stability, hospitality and deep-seated political and social relations between our two countries. Testimony to this are the several and various trade and economic missions that have been to Zimbabwe in the recent past.

This notwithstanding, is also a fact that life is a series of continuous improvements as new ideas, innovation and so forth come to the fore. Therefore, there is always merit in examining one’s business environment with a view to adopting best international practices where need be, but care must also be taken to ensure that fundamental and national interests are always protected. I would therefore, sum my view on this question by saying there is general satisfaction but there are also areas that we are currently working on together with our cooperating partners.

HZ. What specific areas of Zimbabwe’s economy are the Chinese interested in putting their money into?
PC. With 35 years of successful economic reforms under its belt, China has amassed a lot of experience and capacity and some of this, the country now wishes to send offshore. With Zimbabwe’s strategic location, stable socio-political environment, huge natural resources and excellent political relations, prospective Chinese business players are keen on a vast array of sectors that include agriculture and agro-processing, manufacturing, mining, power and energy plus tourism just to name a few. Chinese business players are keen to set up shop in the country and to this end we are considering Industrial Parks and Special Economic Zones just to cite two platforms.

HZ. As Zimbabwe’s ambassador to China, do you receive direct enquiries from prospective big Chinese investors and if so, what happens after that?
PC. Both directly and indirectly, we receive enquiries from various Chinese business actors. By indirectly, I mean that some Chinese in the diaspora directly contact Harare and, through our normal diplomatic and bureaucratic channels Authorities in Harare with the Ministry of Foreign Affairs playing a central role, do engage us in such instances.

On our part when we are approached we also process and pass on the various interests to Harare principally through the same Ministry of Foreign Affairs and at times directly to line ministries depending on the urgency of the matters. But as a matter of practice and principle, we do interface via the Ministry of Foreign Affairs and my experience as Ambassador so far has been pleasant for which I am grateful to the stakeholders back home. In return, we pledge to keep doing our best.

HZ. Can you explain a bit about the planned international investment conference for Chinese investors in Harare this year mentioned by the VP? Do you have specific dates and has the event started generating some interest in China?
PC. I am aware of and fully support, the planned International Investment Conference aimed at the Chinese as announced by the Honourable Vice President. However, I do not have further details and would respectfully suggest that the Ministry of Economic Planning and Investment Promotion would probably be best placed to provide finer details. On our part, we are ready and raring to support the initiative by disseminating the information and also identifying potential participants to the event. Already, there is some interest and interestingly, in our capacity as the sitting Sadc chairman, we, together with fellow Sadc Embassies in China just held a Business Forum on July 9 and the response was quite encouraging. We hope this is something we can build on as we work on the planned Harare investment conference.

HZ. What important lessons can Zimbabwe learn from China’s economic success story?
PC. China is an inspiring story of a country that has, in less than four decades, scored phenomenal economic growth and reduced poverty. About 35 years ago — coincidentally, Zimbabwe-China relations just marked 35 years in April, China, at the behest of the CPC led by the late Deng Xiaoping and other leaders, embarked on its ‘ Opening up and Reform Policy’ that has seen the country rise to its current position as the second largest economy in GDP terms.

Discussions with our Chinese friends indicate that Beijing encountered both challenges and opportunities including mistakes in the process, but the underlying point was the spirit of national pride and determination.

While I do not advocate a ‘copy and paste’ approach, I believe that there is a lot we can learn from Beijing in this regard and indeed we are already doing something in this regard. I wish to pay tribute to Authorities in Harare for this and naturally, His Excellency President Mugabe’s visionary ‘Look East Policy’ anchors our initiative. I am happy to note that the Office of the President and Cabinet is currently spearheading efforts whose results I am certain will soon manifest for the man and woman in the street to feel and see for themselves. I am optimistic.

We need not adopt China’s template but rather learn and adapt the good and positive lessons that we then should apply to our own situation and conditions. Happily, the Chinese themselves are clear about this. They have never been prescriptive or presumptuous. Instead, they have stated their readiness to share their experiences but never to impose these as ‘a size fits all type of solution.’

HZ: Your parting words?
PC: I wish to thank you Hatred for this opportunity to review Zimbabwe-China relations with a bias on the business side of things.

I am grateful and I hope I have contributed positively. In saying so, I wish to recognise the centrality of the long-standing excellent and vibrant political relations between our two parties and nations. This just-ended visit by Honourable Vice President Mnangagwa bears testimony to that. But most importantly, I submit that as Zimbabweans we should count ourselves lucky and blessed to have a visionary leadership that has His Excellency President Mugabe at the core.

Like I said earlier in this interview — 16 years ago, one would have been derided for being a day dreamer if they had stated that China would rank number 2 in GDP terms and be Africa’s premier trading and investment partner but this is now fact. At around the same time His Excellency President Mugabe articulated the Look East Policy. I leave facts to speak for themselves. In a few months from now China and Africa will be celebrating 15 years of FOCAC and this come at a time when Africa is pushing Agenda 2063, industrialisation and value addition among other things.

On the other hand Beijing is promoting the ‘One Road and One Belt Initiative’ that has already seen significant outbound Chinese investments to Africa, Latin America and Asia just to name some. I see lots of opportunities and complementarity between Zimbabwe and China.

The areas are so many we would need to write a book and I do hope we will have opportunities to continue discussing as persons and as a nation especially with other key stakeholders back home that I referred to before. I am optimistic that the fruits of Zimbabwe-China relations and His Excellency President Mugabe’s iconic “Look East Policy” will continue to abound.

Wish a pleasant trip back home!