China reaffirms support for Zimbabwe’s economic growth

Nqobile Bhebhe in Beitbridge

CHINA has reaffirmed its unwavering support for Zimbabwe’s economic growth by injecting multi-million-dollar investments, particularly in the mining and industrial sectors, further strengthening bilateral relations between the two nations.

Zimbabwe has witnessed a surge in foreign investment with Chinese firms playing a pivotal role, particularly in mining, which remains the backbone of the economy. The sector contributes over 60 percent of the country’s export earnings and accounts for more than 50 percent of foreign direct investment (FDI).

Speaking at the groundbreaking ceremony of the US$3,6 billion Palm River Energy Metallurgical Special Economic Zone project in Beitbridge on Monday, Economic and Commercial Counsellor of the Chinese Embassy, Mr Huang Minghai said Zimbabwe has vast potential.

“Zimbabwe is a nation brimming with potential, a land blessed with abundant natural resources, a vibrant cultural heritage, and a resilient, hardworking people. Under His Excellency, President Mnangagwa’s transformative Zimbabwe is open for business policy, the country has emerged as a beacon of opportunity,” he said.

Mr Huang noted that nearly half of the Chinese firms investing in Zimbabwe are in the mining sector.

He said China and Zimbabwe share common interests in mining cooperation based on mutual benefit and win-win outcomes.

Highlighting China’s commitment to Zimbabwe’s development, Mr Huang referenced the Xintai Industrial Park, a project spearheaded by Shanxi Xinganglian Group.

“It is this spirit of openness, coupled with Zimbabwe’s immense potential, which inspired Shanxi Xinganglian Group to establish the Xintai Industrial Park, which is a testament to our shared vision of progress,” said Mr Huang.

He further explained that the project integrates cutting-edge technologies, promotes value addition, and enhances local value chains, aligning with President Mnangagwa’s economic policies.

In addition to creating jobs, the firm aims to expand production and export products, boosting Zimbabwe’s foreign exchange earnings.

The project also prioritizes education, healthcare, and infrastructure development, demonstrating corporate social responsibility.

“This industrial park is more than an economic venture. It is a cornerstone for realising the National Development Strategy 1 (NDS1) and Vision 2030. Together, we are building a sustainable future where

prosperity is shared and enduring,” said Mr Minghai.

Mr Minghai said President Mnangagwa’s state visit to China last year and his participation in the Beijing Summit of the Forum on China-Africa Cooperation (Focac) marked a new milestone in bilateral relations.

During the visit, President Mnangagwa and Chinese President Xi Jinping agreed to establish a ‘five-star ironclad’ cooperation framework to enhance the China-Zimbabwe comprehensive strategic partnership.

“Guided by this vision, I am confident that our collaboration in the mining sector will unlock unprecedented opportunities and foster new drivers of growth for both countries,” said Mr Huang.

Vice-President Dr Constantino Chiwenga highlighted the strategic importance of the Palm River Energy Metallurgical Special Economic Zone, saying it has the potential to serve as a regional hub for metallurgical and energy production across southern Africa.

He lauded President Mnangagwa’s efforts in improving the country’s investment climate, streamlining the ease of doing business and building investor confidence through engagement and re-engagement policies.

“In doing so, the Government has laid a solid foundation for sustainable economic growth. Furthermore, the prioritisation of economic diplomacy highlights the importance of strengthening international relations and positioning Zimbabwe as a leading destination for investment,” said Dr Chiwenga.

The project is structured in several key stages to ensure sustainable development. The first stage focuses on reviving Tuli Coal Mine, which will supply coal to the thermal plant. This step is crucial as it lays the foundation for the entire industrial park.

The second stage involves building the thermal plant, which is already progressing with key components being installed.

This phase is essential for providing a stable energy supply to support subsequent industrial operations.

The third stage includes the development of a smelting plant to produce ferrochrome and steel using raw materials sourced from nearby mines.

The thermal plant will supply energy to this facility, ensuring an integrated production cycle.

By aligning these three stages of coal mining, thermal energy generation, and metal smelting, the project fosters a comprehensive and sustainable development strategy. The initiative is set to drive significant economic growth in Beitbridge and the surrounding regions.