China trade body eyes Zimbabwe energy deals

Nqobile Bhebhe in Beijing, China

THE China Association of Trade in Services (CATIS) has expressed willingness to partner with Zimbabwean industry and commerce across all sectors of the economy, with a strong focus on energy infrastructure development through photovoltaic power station projects as the country intensifies efforts to address electricity shortages and accelerate industrialisation.

Speaking during a presentation on Global Opportunities in China Supply Chains to a delegation of Zimbabwean journalists in Beijing on Sunday, a senior official in charge of the Cross-Border E-Commerce Operations Department at CATIS, Mr Xu Chengang, said the association, as a representative of China’s service trade sector, is ready to leverage existing China-Zimbabwe bilateral relations to deepen trade and industrial cooperation between the two countries.

As a representative body of China’s service trade sector, the association noted that opportunities for collaboration span multiple industries, including renewable energy, pharmaceutical manufacturing, agro-processing machinery, solar-powered construction equipment, engineering machinery, as well as ship and aircraft leasing.

“For most of the needs of your country, China’s supply chain system is well-positioned to provide support. The China Association of Trade in Services aims to be your ideal partner to access high-quality Chinese resources and support the revitalisation of your national economy.

“Since the implementation of the Belt and Road Initiative, China has achieved remarkable results in the trade sector, which ultimately stems from the development and support of China’s robust supply chain,” he said.

Mr Xu said CATIS is committed to supporting Zimbabwe’s economic transformation agenda through supply chain integration and investment facilitation, where feasible and mutually beneficial.

“We strive to leverage the power of the supply chain to support countries around the world, including Zimbabwe, in boosting economic growth, improving people’s livelihoods, and working towards prosperity and strength. We sincerely hope that through this cooperation, Zimbabwe will be able to grow its trade and economy, and further develop and revitalise the country.”

Zimbabwe and China have in recent years strengthened ties across key sectors such as mining, infrastructure, energy and manufacturing, with Chinese enterprises playing a central role in supporting Zimbabwe’s industrialisation and modernisation drive.

Analysts view the relationship as increasingly mutually beneficial, with Zimbabwe gaining access to capital and technology, while Chinese enterprises secure long-term investment opportunities in a resource-rich and strategically positioned African market.

“China has formed over 700 world-class industrial clusters, distributed in over 200 cities and regions, covering engineering machinery, auto parts, consumer electronics, home appliances, textiles and home furnishings, luggage, footwear and apparel, photovoltaic new energy, hardware tools, crop seeds, fertilisers and more. For most categories of products in short supply in your markets, China has professional industrial clusters that are well-positioned to supply directly from the source Mr Xu said.

Energy cooperation emerged as a key focus during the presentation, with CATIS proposing photovoltaic (PV) power station projects as a practical and high-impact investment model for Zimbabwe.

Zimbabwe is pursuing renewable energy investments to close electricity supply gaps, support mining and industrial expansion, and reduce dependence on power imports.

“First, we would establish cooperation. Assume you are the owner of the power station. You would set up a company, which would sign a procurement agreement and a construction entrustment agreement with our supply chain system.

“Second, the main enterprise of the power station would apply for bank loans: With this cooperation agreement, your company may be able to directly apply for project loans from local banks. Banks generally recognise such agreements and may approve loans efficiently.”

Mr Xu said an Engineering, Procurement and Construction (EPC) contractor recommended by CATIS, based on professional qualifications and project suitability, would then undertake construction of the power station.

“During this process, we would also need you, the company that owns the power station, to handle the procedures for integrating the power station into your national power grid. As long as it is successfully connected to the grid, the power station is expected to be put into use. Of course, if any materials are needed, we are willing to cooperate with you to complete them.

“As the operating entity of the power station, the power station would sell electricity to your State Grid, which is expected to pay monthly electricity bills to the company. The electricity bills would then be used to repay bank loans,” he said.

Beyond photovoltaic projects, Mr Xu said CATIS is also positioned to offer full-package implementation solutions across several industrial sectors, subject to mutual agreement and demand.

“We also have access to the world’s second largest aircraft leasing cluster, accounting for over 80 percent of China’s cross-border leasing business, and we are able to offer both aircraft and ship leasing services,” he said.

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