Why Xi visited Zim

Chinese President Xi Jinping (L) and Zimbabwean counterpart Robert Mugabe (R) after arriving in Harare, Zimbabwe. EPA/AARON UFUMELI

Chinese President Xi Jinping (L) and Zimbabwean counterpart Robert Mugabe (R) after arriving in Harare, Zimbabwe. EPA/AARON UFUMELI

Published Dec 1, 2015

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Harare - Many were surprised when Chinese President Xi Jinping suddenly, and at almost the last minute, decided to go to Harare on an official visit this week, as this trip was not on his diary earlier in the year. And there is far less investment from Beijing into Zimbabwe than into any of its neighbours, such as Zambia, Mozambique and Angola.

Some Chinese small businessmen in Harare speculate that the visit emerged because of US president Barack Obama’s recent visit to Kenya and Ethiopia, and because President Robert Mugabe is, after all, an old ally, even if his country’s economy is not attractive to the Chinese.

Most of the few hundred Chinese residents, mostly in Harare, are small businessmen from the provinces, and some of them are having hard times and many left Harare in the last year or so.

“They can’t make any money out of Zimbabwe, just as Zimbabweans are struggling to make money as it is not an investment-friendly place. There are very few big Chinese investments,” said a prominent Chinese investment advisor from Harare who asked not to be identified.

He believed there would be one or two significant state investments, probably in power, agreed upon during Xi’s visit.

Zimbabwe has, on average, only about six hours of power in every 24 hours.

“Zimbabwe’s parlous economic situation - a 45 percent decline in GDP between 1999 and 2008, a 90 percent jobless rate, chronic food insecurity, a yawning infrastructure deficit - Xi’s visit raises expectations of what China can, or should, do to help its stricken ally,” said The Source publication in Harare on Tuesday.

“During President Robert Mugabe’s visit to China in August 2015, Harare and Beijing penned a series of deals, mostly in the energy, telecommunications and infrastructure sectors.”

“Optimistically dubbed ‘mega deals’ by Zimbabwe’s government press desperate for a fillip, these deals pale into insignificance compared to what China has done, and continues to do, elsewhere on the African continent.”

China is Zimbabwe’s fourth largest trading partner, but accounts for the biggest share of the small foreign investment pie attracted to Harare since its fallout with the West after 2000.

The main investments, beyond some small Chinese dabbling in chrome and very small gold mining operations, include the US$355 million Kariba South power plant expansion, which will add 300 megawatts to the struggling national grid, the US$144 million Harare water rehabilitation project, the US$150 million Victoria Falls airport upgrade, and the Huawei digitisation project.

However, Chinese investment in Zimbabwe is tiny in comparison with its neighbours, as China has become Africa’s main trading partner now, although that has declined significantly in 2015.

“The Chinese don’t know if there is a succession plan in Zimbabwe,” said the Chinese businessman in Harare.

“They don’t understand what is going on in land as Zimbabwe cannot feed itself these days, and that is very worrying. And they are not sure about indigenisation.”

But the airport was ablaze with colour this morning as many locals and the few Chinese residents went to greet the Chinese leader as they and so many other are hoping - desperately - that the failing and ever-shrinking economy will be rescued by China.

African News Agency

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