Tinaye Agere
Sunday Mail Correspondent
CHINESE companies in Zimbabwe are doubling their efforts to invest and cooperate across various sectors such as mining, agriculture, manufacturing, construction and telecommunications.
The activities are in line with the Asian country’s business model of promoting economic and social sustainable development.
Combined, the Chinese firms’ involvement has provided significant support to Zimbabwe’s efforts in advancing agricultural modernisation and expediting industrialisation.
In addition, the primed activities promote economic diversification on one hand and improve infrastructure conditions on the other, as well as boost local employment and tax revenue.
Government has consistently praised the investments and impact of Chinese companies, including their transformative power to local communities and the broader economy, with President Mnangagwa, who was in China for the Forum on China-Africa Cooperation Summit in September, applauding Chinese enterprises and calling for more high-quality investments.
President Mnangagwa attended the 8th Conference of Chinese and African Entrepreneurs ahead of the summit and highlighted how Chinese investments are supporting sustainable development and job creation.
On the ground, several Chinese companies have made a difference to local people and the economy, significantly underlining their importance as the single largest foreign investor bloc, now employing over 100 000 Zimbabweans, according to figures from the Chamber of Chinese Enterprises in Zimbabwe.
China Minerals Corporation (Bikita Lithium Mine Project) has invested US$200 million to upgrade and build new production lines, with an estimated potential to create 1 500 job opportunities in the future.
The company actively supports and cultivates local industries, promotes local employment and has established a CSR (corporate social responsibility) committee to actively participate in community affairs.
At present, there are 1 078 local employees working for the company, 80 percent of whom come from local communities such as Bikita, Gutu and Masvingo.
It is understood that before 2022, the number of employees of Bikita Mining was about 250.
Since the acquisition of Bikita Mining by China Mineral Resources in 2022, the number of local employees employed by the company and its subordinate contractors has increased to 2 550.
In addition, the current minimum wage of the company is 450 yuan per month (excluding bonuses), and the average monthly wage is US$1 178, compared with US$770 before 2022, an increase of 55,8 percent.
To sum up, the livelihood of local residents has significantly improved.
The joint venture company of Shengxin Lithium Energy, Max Mind Investment, contributes US$600 million in foreign exchange income annually to Zimbabwe, creating 700 job opportunities locally.
Through fulfilling corporate social responsibilities, they continuously improve local transportation, education and healthcare conditions, boosting local economic and social development.
South Mining Limited is currently one of the largest coal production enterprises in Zimbabwe, with 1 200 employees and an annual production of 400 000 tonnes of coking coal.
The company has been awarded the CSRNZ Environmental Protection and Social Impact Medals for several consecutive years.
Social impact
To achieve mutual sustainable development between the company and the community, Huayou Prospect Lithium supports local educational development.
With a cumulative investment of approximately US$220 000, they have donated classrooms and teacher apartments to nearby schools, as well as 5 500 textbooks and 400 sets of desks and chairs.
These efforts have significantly improved local educational facilities and promoted the quality of education.
Sinomine is currently constructing four new classrooms for Mara Primary School in Masvingo free of charge.
In July 2023, South Mining Company spent over US$500 000 to donate a community library to Hwange town.
The library can accommodate approximately 120 people for reading.
It includes both a traditional book reading area and an electronic device reading area, equipped with eight computers and other digital devices, providing a modern learning environment for local children.
Bikita invests in income-generating projects for local communities.
For example, it donates 650 000 tonnes of decontamination powder to local residents every month.
Residents earn income by selling decontamination powder, which improves the income of the community.
In addition, the company has established a community fund, managed by Chief Marozva, of US$30 000 a year for community relief and poverty alleviation.
Infrastructure
Sinomine participated in the investment and construction of 132 kV high-voltage transmission line, which was completed at the end of 2023 and formally electrified in March.
The high-voltage transmission line connects Tokwe to Bikita via Masvingo, with a total length of 110 kilometres and a total investment of about US$22 million.
The company has provided assistance for 36 wells, including 17 wells in Bikita West, 14 wells in Masvingo North and five wells in Masvingo West, with a total cost of about US$104 000.
These wells provide enough clean water for communities and improve household sanitation.
In view of the increasingly serious local drought in recent years, Sinomine plans to continue to assist the construction of community wells in Bikita area.
Bikita Lithium Mine, SABI Star Mine, MiningChang mine in Gutu and South Mining in Hwange have initiated the “Water is Life” public welfare project.
They have drilled wells in nearby communities, providing reliable sources of clean water.
The joint venture company of Shengxin Lithium Energy, Max Mind Investment, has constructed a clinic for the local community and provided access to water and electricity, enabling villagers who previously had to travel seven kilometres for medical treatment to receive healthcare services right at their doorstep.
Max Mind Investment signed agreements with 40 families potentially affected by mining operations.
According to the villagers’ preferences, they have been relocated to three different locations, where new residences have been provided with water and electricity connections.
The company has also committed to employing at least one person from each family in the Sabi Star project.
Dinson Iron and Steel Company plant has constructed new houses for affected villagers and provided free housing for local impoverished families.
Additionally, they supply monthly food and daily necessities.
Sinomine has built hundreds of employee and residential houses, as well as a restaurant and a sewage treatment system to facilitate better living conditions of local workers.
In June 2023, China Mining Resources repaired a 7km road between Bikita and Gutu.
South Mining expanded the residential roads in local villages and repaired and cleaned the main roads.
Total repaired road is about 25 km.
Further, in May 2023, Sinomine invested US$24 million to construct a 120km (132kVA) transmission line and substation from Bikita to Tokwe.
This project will provide electricity to rural areas including Bikita, Gutu and Zaka, effectively promoting local economic and social development.
Max Mind Investment renovated and widened a 37km road from the mining area to the main road, installing signboards along the road.
The previously potholed and narrow road has become smooth and spacious, providing convenience for local villagers.
Online Reporter