Sino-Zimbabwe Media Forum an eye-opener China’s President Xi Jinping

Lovemore Chikova News Editor—

The second China-Zimbabwe Media Forum hosted by the Chinese embassy on Monday was useful to the media in various aspects.

The forum, held at the Chinese embassy, was attended by local journalists from various media houses and their Chinese counterparts based in Zimbabwe.

One of the important aspects of the forum was a briefing made by Chinese firms on their work in Zimbabwe.

It turned out that the investment deals signed in the last two years, are progressing well, as evidenced by the reports given by the firms. What was also important about the forum was that it coincided with the meeting between President Mugabe and his Chinese counterpart President Xi Jinping in Beijing on Monday.

President Mugabe

President Mugabe

The two leaders discussed the mega deals and reaffirmed their commitment to their implementation and to enhancing relations between the two sides.

There has been doubt in some quarters on the implementation of the mega deals, with some media houses casting aspersions on the cordial relations between Zimbabwe and China.

The deals, worth billions of dollars, are set to change the status of the Zimbabwean economy and usher in a new era of prosperity.

Some of the deals were signed when President Mugabe paid a State visit to China in 2014.

Others were signed in 2015 when President Xi came to Zimbabwe on a State visit. President Xi visited the country on his way to the Forum for China-Africa Cooperation in South Africa where a new era of economic relations between the two sides was charted.

At the second China-Zimbabwe Media Forum, the Chinese firms gave an update on the progress being made in implementing some of the mega deals.

The Kariba South Extension Project, one of the vital deals signed between Zimbabwe and China, is nearing completion.

Electricity supply in the country is expected to improve drastically by the end of this year when the first unit of the power project comes on line.

The second unit is expected to start generating power by March next year.

This was part of the update on the project given to the journalists by Sino Hydro vice general manager Mr Wang Jian.

Sino Hydro is the Chinese firm contracted on the project.

It emerged that 75 percent of civil works have already been completed at Kariba South, while 30 percent of mechanical installations have been done.

Since its official commencement in 2014, the Kariba South Extension project has proved to be important in reviving the Zimbabwean economy.

This is because the country cannot operate efficiently without enough electricity. The industrialisation of the economy needs reliable power generation and concentrating on improving electricity supply first will eventually put everything together.

When complete, the Kariba South Extension will add 300MW to the national grid. It is clear that the implementation of the project creates both economic and social benefits for Zimbabwe.

Electricity is important in people’s daily lives — that is of no doubt.

This explains why Zesa Holdings has been going all out to import power as a mitigation measure to close the gap between local supply and demand.

Zimbabwe relies mainly on Kariba Hydro Power Station, Hwange Thermal Power Station and small thermals in Harare, Bulawayo and Munyati.

But the three small power stations are no longer providing much electricity because of aging and temporary hydrology constraints.

This is why it is important that Sino Hydro is already working on the establishment of Hwange 7 and 8 power generating projects.

According to Mr Wang, once the financial closure of the Hwange project is done, Sino Hydro will invest $176 million as project equity. The related investment agreement is already being negotiated and Sino Hydro looks forward to starting the project in the first half of this year. When completed, Hwange 7 and 8 are expected to add a combined 600MW to the national grid. Zimbabwe generates about 1 300MW against a peak demand of 2 200MW.

President Xi Jinping

President Xi Jinping

Apart from Kariba South and Hwange 7 and 8 expansion, Sino Hydro last year signed a $600 million agreement for the construction of Kunzvi-Musami Dam.

The agreement was signed by secretary for Environment, Water and Climate Mr Prince Mupazviriho in Beijing at a seminar on China-Africa Business Cooperation. Another company which updated the journalists on its work in Zimbabwe was Tianze Tobacco Company, a subsidiary of China Tobacco International.

The firm has done a lot in helping revive tobacco growing in Zimbabwe following the land reform programme.

Before the programme, tobacco was mainly grown by a few white farmers who owned the appropriate land for the crop.

After the programme, many black farmers took over the land and started venturing into tobacco growing.

Most of them lacked resources and know-how, but Tianze introduced a contract growing scheme that accommodated many of the new farmers.

In fact, the firm has been providing interest free loans and other free tobacco farming assistance aimed at improving production. The firm had one contract farmer in 2005, but now it has 305 who are working on a combined 10 000 hectares.

Tobacco output from such a contract farming scheme rose from very little to 37 000 tonnes this year. The local farmers are also benefiting as the competition brought by Tianze is pushing up the tobacco prices at the auction floors.

Tobacco growing in Zimbabwe has since increased from 48,8 million kg in 2008 to 203 million this year.

In Southern African Development Community, Tianze is also involved in the tobacco leaf in Zambia, Malawi and Tanzania. Besides contracting farmers, Tianze buys tobacco from other companies in Zimbabwe for export to China.

The Anhui Foreign Economic Construction (Group) also briefed the journalists. The firm has several joint venture companies in Zimbabwe such as Anjin Investments, Jinan Mining and Sogecoa Construction Company.

Anhui constructed the National Defence College, which will be upgraded to the National Defence University in the near future. The firm’s general manager Mr Zhang Shibin said his firm has also been involved in social responsibility.

It is in Zimbabwe’s favour that progress is being made in the implementation of the mega deals. Chinese vice ambassador Mr Zhao Baogang told the journalists that many Chinese investors had visited Zimbabwe in the last few years.

They are expected to make their decisions to invest in the country this year, putting Zimbabwe on a good footing to implement its industrialisation programme. The construction of the new Parliament Building and the pharmaceutical hub is expected to start soon, once logistics have been put in place.

The implementation of the deals comes soon after the completion of the upgrading of the Victoria Falls International Airport. The airport, done the Chinese firm Jiangsu International, can now host bigger planes. This is expected to increase tourist inflows into Victoria Falls and surrounding attractions.

“Our bilateral relations will continue to be on the fast track development,” said Mr Zhao. “It is a good sign that you (Zimbabwe) have passed the Special Economic Zones Act to attract more investment”.

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