China-Zimbabwe State Visit Spawns $4 Billion Deals
December 3, 2015
Happiness Zengeni and Martin Kadzere
Zimbabwe Herald
Landmark deals worth $4 billion signed between Zimbabwe and China on Tuesday will convert provisions of the Government’s economic blueprint, Zim-Asset, into programmes of action. The two nations signed 12 investment agreements covering different sectors of the economy. The deals include financing for the expansion of Hwange Power Station, construction of a new Parliament building and a pharmaceutical warehouse, expansion of a national fibre optic broadband project and provision of wildlife monitoring equipment.
The signing of the agreements was witnessed by President Mugabe and his Chinese counterpart Xi Jinping, who arrived in Harare on Tuesday on a two-day State visit, leading a powerful delegation of about 200 people including senior Chinese government officials and representatives from the Communist Party of China.
Under the agreements, China will soon begin extending loans to Zimbabwe amounting to over $1,1 billion for the expansion of Hwange Power Station and TelOne’s broadband access project. “The loans will take effect in the first half of 2016,” Finance and Economic Development Minister Patrick Chinamasa said yesterday.
Minister Chinamasa signed two loan agreements for the expansion of Hwange Power Station and TelOne’s fibre optic project with chairperson of the China Eximbank Hu Xiaolian. With respect to Hwange, the Eximbank of China will extend a preferential buyer credit loan of $997 723 244,20 at a concessionary rate of 2 percent per annum over 20 years.
Sino-Hydro was contracted to undertake the project, expected to cost about $1,5 billion. On completion of the project, the plant will add 600 megawatts to the national grid, currently under pressure due to subdued production at the country’s main power stations. Zimbabwe is generating an average 900MW against peak demand of 2 200 megawatts due to low water levels at Kariba Hydro Power Station and recurrent faults at Hwange.
An amount of $98 617 482.19, also at a concessionary rate of 2 percent per annum over 20 years, will be extended to TelOne to finance backbone network and broadband project. Minister Chinamasa also said China had given Zimbabwe a grant of 400 million Chinese renmimbi ($65,5 million) for the construction of the new Parliament building, the NatPharm warehouse and other projects.
The agreements were also signed on Tuesday. Zimbabwe has, for over 15 years, been unable to secure long-term loans to fund infrastructure because it is in arrears with global lenders — the IMF and the World Bank. However, the multi-lateral institutions might resume financial support to Zimbabwe after a deal was struck with international creditors on how the country intends to repay its arrears.
Zimbabwe intends to clear its arrears to the three multinational institutions, the IMF, ($110 million), the World Bank ($1.15 billion) and the AfDB ($601 million) by the end of April 2016.
On the conclusion of an Avoidance of Double Taxation and Prevention of Fiscal Evasion Agreement between Zimbabwe and China, Minister Chinamasa said the pact would bring certainty on taxation of cross border income thereby enhancing investments between the two countries. It also promotes cooperation in tax administration.
Leaders hail historic State visit
December 3, 2015
Tendai Mugabe Senior Reporter
President Mugabe yesterday hailed the agreements signed between Zimbabwe and China during Chinese President Xi Jinping’s historic State visit on Tuesday, saying they will help national economic development. Speaking to journalists while bidding President Xi farewell at Harare International Airport, President Mugabe said Cde Xi’s visit was phenomenal and Zimbabweans were overjoyed about it.
He said relations between Zimbabwe and China had reached a new high following the State visit. Zimbabwe, President Mugabe said, will remain a true friend of China. “On behalf of Zimbabwe, I want to say how overjoyed we were to receive as a our guest President Xi Jinping and his delegation,” he said.
“Although their stay was brief, but the essence of the visit was phenomenal and shall always be remembered by us in Zimbabwe. The Chinese and Zimbabweans are excellent friends, friends not just today, friends that have established their friendship back and our future will always be on the path of that. We are all-weather friends.
“But our friendship is now much more than that — there being those economic agreements where China will assist Zimbabwe to develop economically. We want to thank you for that generosity. We shall always be friends forever and we should consolidate our friendship.”
During his two-day stay, President Xi and his Zimbabwean counterpart witnessed the signing of 12 landmark agreements between Zimbabwe and China – two of which are private sector driven. The deals covered areas such as aviation, telecommunication and infrastructure development. For that economic gesture, President Mugabe paid gratitude to Chinese for continuing standing by Zimbabwe.
The economic rescue package, which covers several key sectors, comes at the most intervening period as the country is reeling under the devastating effects of illegal sanctions imposed by Western countries.
In his address to the journalists at the Harare International Airport, President Xi said he was satisfied by his visit to Zimbabwe which is the second by a Chinese President since independence. The first visit by a Chinese President to Zimbabwe was in 1996 by President Jiang Zemin.
“Your Excellency President Mugabe and Mrs Mugabe, the Vice President and Government officials, I want to thank you for the warm and sound reception you and your country accorded me and my delegation,” he said.
“I want to thank you for those warm sentiments and I am satisfied by this visit.” President Xi said he hoped that the Forum on China-Africa Cooperation starting in South Africa today would be a resounding success. “We are going to meet again at the Africa-China Summit in South Africa and I hope it will be another resounding success,” he said.
Present at the Harare International Airport for President Xi’s departure were First Lady Dr Grace Mugabe, Vice Presidents Emmerson Mnangagwa and Phelekezela Mphoko, service chiefs, senior Government officials and several Chinese nationals resident in Zimbabwe.
President Xi left the Harare International Airport around mid-morning for South Africa where he will undertake a State visit and attend the Forum on China-Africa Cooperation. Before his departure, he met Chinese embassy staff and nationals resident in Zimbabwe in a closed door meeting at a local hotel. President Xi visited a wildlife sanctuary near the Harare International Airport before his departure.
Zimbabwe, China ink 12 landmark deals
December 2, 2015
Tendai Mugabe and Martin Kadzere
THE implementation of Zim-Asset received a major boost and fresh impetus yesterday following the signing of 12 landmark agreements between Zimbabwe and China to fund vital projects in key economic sectors. Zim-Asset is the Government’s five-year economic blueprint targeting the creation of 2,2 million jobs, among other deliverables, by 2018. Two of the deals are private sector-driven.
The signing of the new agreements, which cover key sectors such as infrastructure, telecommunications and energy was witnessed by Heads of State and Government of the two countries, President Mugabe and his Chinese counterpart Xi Jinping.
President Xi is on a two-day State visit to Zimbabwe leading a delegation of 200 people, including Cabinet ministers, bankers and representatives from the Communist Party of China. This followed President Mugabe’s successful 13th State visit to China in August last year, where another set of nine mega deals was signed with the world’s second largest economy after the US.
Some of the deals are at various stages of implementation. Finance and Economic Development Minister Patrick Chinamasa penned four agreements on behalf of Zimbabwe with the first one being an economic and technical cooperation agreement with China. Chinese Minister of Commerce Mr Gao Hucheng signed on behalf of his country.
The two also signed an agreement on avoidance of double taxation. Minister Chinamasa signed two loan agreements for the expansion of Hwange Thermal Power Station and TelOne’s fibre optic project with the chairperson of the China Eximbank, Ms Hu Xiaolian.
On Hwange Power Station expansion, the Zimbabwe Power Company represented by its managing director Engineer Noah Gwariro and Sinohydro represented by chairman of its parent company, Power China, Mr Yan Zhiyong, signed a cooperation agreement on Hwange 7 and 8 project.
The expansion project at Hwange will see Sinohydro adding two units with a capacity of 600 MW. Mr Gao signed four more deals on aviation cooperation with Transport and Infrastructure Development Minister Joram Gumbo and construction of a national pharmaceutical warehouse with Health and Child Care Minister, Dr David Parirenyatwa.
He also signed a handover and acceptance of certificate on the donation of equipment for wildlife protection in Zimbabwe with Environment, Water and Climate Minister Oppah Muchinguri and an agreement on the exchange of notes for the construction of a new Parliament building with Local Government, Public Works and National Housing Minister Saviour Kasukuwere.
Policy Coordination and Promotion of Socio-Economic Ventures in the President’s Office Minister, Simon Khaya Moyo, signed an agreement with the chairman of the National Development and Reform Commission chairperson, Mr Xu Shaoshi, on enhancement of investment.
Two more private sector agreements were also signed between International Business of China and China Africa Sunlight Energy on the development of coal and methane gas mines as well the establishment of 600 MW thermal power station in Gwayi. The other agreement was between AVM Africa Limited and Beijing Automobile Assembly.
Earlier on, President Mugabe had described China as Zimbabwe’s best friend at international level. He said the relationship between the two countries was not premised on the fact that China was a rich country, but that the Chinese were people of action. President Mugabe chronicled the important role that China played during the Zimbabwe’s liberation struggle by providing military and technical support.
“We had a tough struggle against the British settlers and the Chinese assisted us with guns,” he said. “Every year I went to China to say we need more guns and more guns were given until we attained our independence on 18 April 1980. “So as we host you here, this is your second country because China assisted us to attain our independence.”
After attaining political independence, President Mugabe said, Zimbabwe embarked on another struggle to empower people economically. He said Zimbabwe was seeking financial support from the Chinese to convert the country’s vast natural resources into wealth. “We now have freedom and the task at hand is to convert our natural resources into wealth for our people,” said President Mugabe.
“The main area of this struggle is fighting poverty and backwardness. The other key areas include roads, rail and infrastructure development.” In response, President Xi who was speaking through an interpreter, said China placed high premium to its relations with Zimbabwe. He said his visit, which was the only one on a bilateral level during his second visit to Africa, was in fulfilment of the promise that he made to President Mugabe last year that Zimbabwe would be his first destination on his second visit to Africa.
“I am fulfilling that promise,” said President Xi to deafening applause. “I was overwhelmed by the welcome by President Mugabe and the people of Zimbabwe at the airport. “President Mugabe is a seasoned statesman and a founding father of Africa who is respected across the continent. In China, we also have the same people whom we hold in high regard.”
President Xi hailed President Mugabe for leading Zimbabwe on a development path and uncompromised stance towards external interference. He said the relationship between the two countries was premised on a mutual and win-win basis. “Last year Zimbabwe and China agreed to be good friends and brothers on an equal footing,” he said.
“The relationship between Zimbabwe and China has stood the test of time and is one of the best relationships between the developing countries.” President Xi said it was his hope that President Mugabe would lead the African Union to new heights as a respected statesman. Foreign Affairs Minister Simbarashe Mumbengegwi and his Chinese counterpart Mr Wang Yi, said the leaders had a successful meeting during a closed session at State House.
Minister Mumbengegwi said Beijing was an important friend of Harare, which vetoed a resolution by some Western powers that sought to impose devastating sanctions on Zimbabwe under the United Nations in 2008. Mr Yi said the visit by President Xi gave impetus to the flourishing relationship between Zimbabwe and China.
He said the two leaders agreed to upgrade the relationship from trade of primary commodities to investments and beneficiation.
‘Implementation of landmark deals begins’
December 3, 2015
Innocent Ruwende Senior Reporter
Government is working on a raft of measures including capacitating the Zimbabwe Investment Authority (ZIA) to ensure that the 12 landmark agreements signed between Zimbabwe and China to fund vital projects in key economic sectors are implemented, Macro-economic Planning and Investment Promotion Minister, Dr Obert Mpofu, has said. In an interview yesterday, Dr Mpofu said Zimbabwe was excited by the visit by the Chinese President Xi Jinping and was geared up to implement the mega deals.
“I have no doubt that these deals will be implemented. I had a meeting with ZIA and asked them about their preparedness and they said they are more than ready to work and make sure that these deals are implemented. “We are considering a raft of measures including popularising and capacitating ZIA so that it meets what is expected of them by investors,” he said.
Minister of Policy Coordination and Promotion of Socio Economic Ventures in the President’s Office, Simon Khaya Moyo, concurred with his counterpart, saying both sides should start working to ensure ordinary citizens realised the results. “There is no doubt we are going to implement the deals which were signed after a great visit by President Xi. All the agreements signed are in support of the country’s economic blueprint Zim-Asset.
“We must start preparing to make sure that they are implemented by both sides. If they remain on the table, they will be of no use to both nations hence we will work with speed to ensure that they are implemented. The message from the two Presidents (President Mugabe and President Xi) was very clear, it is not business as usual,” he said.
He said the parties involved must ensure that ordinary people benefit from the investments adding that corruption would not be tolerated. Economist, Mr Pascal Mandeya, said the key issue was to depoliticise the whole process of implementing the signed deals.
“There is no need to criticise these deals just because you belong to a certain political affiliation. If implemented properly these deals will help the nation.
“The deals also call for a revaluation of our national development plans including programmes like Zim-Asset so that we can accommodate the new realities brought about by the deals. Most importantly, we need to allocate and channel resources to these areas so that we do not hold back progress because the deals require that Zimbabwe meets its obligations,” he said.
Another economist with a local bank, who spoke on condition of anonymity, said Zimbabwe was ready to hit the road running and sooner or later, results will be there for everyone to see. “Zimbabwe is endowed with vast natural resources — minerals, flora and fauna, good climate, rich soils among others. What is lacking is funding and infrastructure to kick-start the processes. With these deals, Zimbabwe’s economy will have a different complexion in the next few years,” he said.
Two of the deals signed are private sector-driven while new agreements, cover key sectors such as infrastructure, telecommunications and energy. Finance and Economic Development Minister, Patrick Chinamasa signed two loan agreements for the expansion of Hwange Thermal Power Station and TelOne’s fibre optic project with the chairperson of the China Eximbank, Ms Hu Xiaolian.
On Hwange Power Station expansion, the Zimbabwe Power Company represented by its managing director, Engineer Noah Gwariro and Sinohydro represented by chairman of its parent company, Power China, Mr Yan Zhiyong, signed a cooperation agreement on Hwange 7 and 8 project.
The expansion project at Hwange will see Sinohydro adding two units with a capacity of 600 MW.
Chinese group acquires stake in Sunlight Energy
December 3, 2015
Tinashe Makichi Business Reporter
Yunnan Linkun Investment Group of China has acquired a 50 percent shareholding in China-Africa Sunlight Energy and plans to invest an initial $700 million towards the development of Gwayi Coal-Electricity Integrated Project in Matabeleland North Province. This follows the termination of a joint venture between the initial partners Shandong Taishan Sunlight Investment Company Limited and Old Stone Investments, the local shareholders. The JV was terminated after Shandong failed to mobilise the required funding for the project.
The project, which was granted National Project Status by Government will see the group set up coal mining operations and construct a 2X300 Megawatts thermal power station. “We have secured a new investor to take up a 50 percent stake in CASECO from the previous shareholder; Shandong Taishan Sunlight. Efforts are being made to reimburse the company (Shandong) its initial investment of about $12 million.
“In fact, the new investor is willing to reimburse provided the amount is verified as well,” China Africa Sunlight chief executive Mr Charles Mugari told The Herald Business in an interview on Tuesday.
Mr Mugari said the new investor has capacity to move the Gwayi project forward. An immediate capital injection for running the company will be made available while the company is also engaged in negotiations with a Chinese Bank to secure a loan by the end of this month.
“We have concluded the indicative term sheet. Conclusion of the final loan agreement will be done by the end of this month so that an initial capital injection of $700 million into the project will be done by the beginning of next year,” said Mr Mugari.
He said the termination of the previous joint venture was mutual and there was no bad blood between the two parties. Mr Mugari said since the coming on board of the new investor, CASECO has identified a new EPC contractor, Sinohydro Bureau 3 Corporation Limited and the Bank of China is also expected to fund the project.
“Sinohydro engineers were in Zimbabwe last October for due diligence. A document was completed and we went to China for the signing of the EPC contract on November 18.
The signing ceremony was witnessed by Energy and Power Development Permanent Secretary Patson Mbiriri and Defence Permanent Secretary Martin Rushwaya and the Zimbabwean Ambassador to China, Paul Chikawa,” said Mr Mugari.
Happiness Zengeni and Martin Kadzere
Zimbabwe Herald
Landmark deals worth $4 billion signed between Zimbabwe and China on Tuesday will convert provisions of the Government’s economic blueprint, Zim-Asset, into programmes of action. The two nations signed 12 investment agreements covering different sectors of the economy. The deals include financing for the expansion of Hwange Power Station, construction of a new Parliament building and a pharmaceutical warehouse, expansion of a national fibre optic broadband project and provision of wildlife monitoring equipment.
The signing of the agreements was witnessed by President Mugabe and his Chinese counterpart Xi Jinping, who arrived in Harare on Tuesday on a two-day State visit, leading a powerful delegation of about 200 people including senior Chinese government officials and representatives from the Communist Party of China.
Under the agreements, China will soon begin extending loans to Zimbabwe amounting to over $1,1 billion for the expansion of Hwange Power Station and TelOne’s broadband access project. “The loans will take effect in the first half of 2016,” Finance and Economic Development Minister Patrick Chinamasa said yesterday.
Minister Chinamasa signed two loan agreements for the expansion of Hwange Power Station and TelOne’s fibre optic project with chairperson of the China Eximbank Hu Xiaolian. With respect to Hwange, the Eximbank of China will extend a preferential buyer credit loan of $997 723 244,20 at a concessionary rate of 2 percent per annum over 20 years.
Sino-Hydro was contracted to undertake the project, expected to cost about $1,5 billion. On completion of the project, the plant will add 600 megawatts to the national grid, currently under pressure due to subdued production at the country’s main power stations. Zimbabwe is generating an average 900MW against peak demand of 2 200 megawatts due to low water levels at Kariba Hydro Power Station and recurrent faults at Hwange.
An amount of $98 617 482.19, also at a concessionary rate of 2 percent per annum over 20 years, will be extended to TelOne to finance backbone network and broadband project. Minister Chinamasa also said China had given Zimbabwe a grant of 400 million Chinese renmimbi ($65,5 million) for the construction of the new Parliament building, the NatPharm warehouse and other projects.
The agreements were also signed on Tuesday. Zimbabwe has, for over 15 years, been unable to secure long-term loans to fund infrastructure because it is in arrears with global lenders — the IMF and the World Bank. However, the multi-lateral institutions might resume financial support to Zimbabwe after a deal was struck with international creditors on how the country intends to repay its arrears.
Zimbabwe intends to clear its arrears to the three multinational institutions, the IMF, ($110 million), the World Bank ($1.15 billion) and the AfDB ($601 million) by the end of April 2016.
On the conclusion of an Avoidance of Double Taxation and Prevention of Fiscal Evasion Agreement between Zimbabwe and China, Minister Chinamasa said the pact would bring certainty on taxation of cross border income thereby enhancing investments between the two countries. It also promotes cooperation in tax administration.
Leaders hail historic State visit
December 3, 2015
Tendai Mugabe Senior Reporter
President Mugabe yesterday hailed the agreements signed between Zimbabwe and China during Chinese President Xi Jinping’s historic State visit on Tuesday, saying they will help national economic development. Speaking to journalists while bidding President Xi farewell at Harare International Airport, President Mugabe said Cde Xi’s visit was phenomenal and Zimbabweans were overjoyed about it.
He said relations between Zimbabwe and China had reached a new high following the State visit. Zimbabwe, President Mugabe said, will remain a true friend of China. “On behalf of Zimbabwe, I want to say how overjoyed we were to receive as a our guest President Xi Jinping and his delegation,” he said.
“Although their stay was brief, but the essence of the visit was phenomenal and shall always be remembered by us in Zimbabwe. The Chinese and Zimbabweans are excellent friends, friends not just today, friends that have established their friendship back and our future will always be on the path of that. We are all-weather friends.
“But our friendship is now much more than that — there being those economic agreements where China will assist Zimbabwe to develop economically. We want to thank you for that generosity. We shall always be friends forever and we should consolidate our friendship.”
During his two-day stay, President Xi and his Zimbabwean counterpart witnessed the signing of 12 landmark agreements between Zimbabwe and China – two of which are private sector driven. The deals covered areas such as aviation, telecommunication and infrastructure development. For that economic gesture, President Mugabe paid gratitude to Chinese for continuing standing by Zimbabwe.
The economic rescue package, which covers several key sectors, comes at the most intervening period as the country is reeling under the devastating effects of illegal sanctions imposed by Western countries.
In his address to the journalists at the Harare International Airport, President Xi said he was satisfied by his visit to Zimbabwe which is the second by a Chinese President since independence. The first visit by a Chinese President to Zimbabwe was in 1996 by President Jiang Zemin.
“Your Excellency President Mugabe and Mrs Mugabe, the Vice President and Government officials, I want to thank you for the warm and sound reception you and your country accorded me and my delegation,” he said.
“I want to thank you for those warm sentiments and I am satisfied by this visit.” President Xi said he hoped that the Forum on China-Africa Cooperation starting in South Africa today would be a resounding success. “We are going to meet again at the Africa-China Summit in South Africa and I hope it will be another resounding success,” he said.
Present at the Harare International Airport for President Xi’s departure were First Lady Dr Grace Mugabe, Vice Presidents Emmerson Mnangagwa and Phelekezela Mphoko, service chiefs, senior Government officials and several Chinese nationals resident in Zimbabwe.
President Xi left the Harare International Airport around mid-morning for South Africa where he will undertake a State visit and attend the Forum on China-Africa Cooperation. Before his departure, he met Chinese embassy staff and nationals resident in Zimbabwe in a closed door meeting at a local hotel. President Xi visited a wildlife sanctuary near the Harare International Airport before his departure.
Zimbabwe, China ink 12 landmark deals
December 2, 2015
Tendai Mugabe and Martin Kadzere
THE implementation of Zim-Asset received a major boost and fresh impetus yesterday following the signing of 12 landmark agreements between Zimbabwe and China to fund vital projects in key economic sectors. Zim-Asset is the Government’s five-year economic blueprint targeting the creation of 2,2 million jobs, among other deliverables, by 2018. Two of the deals are private sector-driven.
The signing of the new agreements, which cover key sectors such as infrastructure, telecommunications and energy was witnessed by Heads of State and Government of the two countries, President Mugabe and his Chinese counterpart Xi Jinping.
President Xi is on a two-day State visit to Zimbabwe leading a delegation of 200 people, including Cabinet ministers, bankers and representatives from the Communist Party of China. This followed President Mugabe’s successful 13th State visit to China in August last year, where another set of nine mega deals was signed with the world’s second largest economy after the US.
Some of the deals are at various stages of implementation. Finance and Economic Development Minister Patrick Chinamasa penned four agreements on behalf of Zimbabwe with the first one being an economic and technical cooperation agreement with China. Chinese Minister of Commerce Mr Gao Hucheng signed on behalf of his country.
The two also signed an agreement on avoidance of double taxation. Minister Chinamasa signed two loan agreements for the expansion of Hwange Thermal Power Station and TelOne’s fibre optic project with the chairperson of the China Eximbank, Ms Hu Xiaolian.
On Hwange Power Station expansion, the Zimbabwe Power Company represented by its managing director Engineer Noah Gwariro and Sinohydro represented by chairman of its parent company, Power China, Mr Yan Zhiyong, signed a cooperation agreement on Hwange 7 and 8 project.
The expansion project at Hwange will see Sinohydro adding two units with a capacity of 600 MW. Mr Gao signed four more deals on aviation cooperation with Transport and Infrastructure Development Minister Joram Gumbo and construction of a national pharmaceutical warehouse with Health and Child Care Minister, Dr David Parirenyatwa.
He also signed a handover and acceptance of certificate on the donation of equipment for wildlife protection in Zimbabwe with Environment, Water and Climate Minister Oppah Muchinguri and an agreement on the exchange of notes for the construction of a new Parliament building with Local Government, Public Works and National Housing Minister Saviour Kasukuwere.
Policy Coordination and Promotion of Socio-Economic Ventures in the President’s Office Minister, Simon Khaya Moyo, signed an agreement with the chairman of the National Development and Reform Commission chairperson, Mr Xu Shaoshi, on enhancement of investment.
Two more private sector agreements were also signed between International Business of China and China Africa Sunlight Energy on the development of coal and methane gas mines as well the establishment of 600 MW thermal power station in Gwayi. The other agreement was between AVM Africa Limited and Beijing Automobile Assembly.
Earlier on, President Mugabe had described China as Zimbabwe’s best friend at international level. He said the relationship between the two countries was not premised on the fact that China was a rich country, but that the Chinese were people of action. President Mugabe chronicled the important role that China played during the Zimbabwe’s liberation struggle by providing military and technical support.
“We had a tough struggle against the British settlers and the Chinese assisted us with guns,” he said. “Every year I went to China to say we need more guns and more guns were given until we attained our independence on 18 April 1980. “So as we host you here, this is your second country because China assisted us to attain our independence.”
After attaining political independence, President Mugabe said, Zimbabwe embarked on another struggle to empower people economically. He said Zimbabwe was seeking financial support from the Chinese to convert the country’s vast natural resources into wealth. “We now have freedom and the task at hand is to convert our natural resources into wealth for our people,” said President Mugabe.
“The main area of this struggle is fighting poverty and backwardness. The other key areas include roads, rail and infrastructure development.” In response, President Xi who was speaking through an interpreter, said China placed high premium to its relations with Zimbabwe. He said his visit, which was the only one on a bilateral level during his second visit to Africa, was in fulfilment of the promise that he made to President Mugabe last year that Zimbabwe would be his first destination on his second visit to Africa.
“I am fulfilling that promise,” said President Xi to deafening applause. “I was overwhelmed by the welcome by President Mugabe and the people of Zimbabwe at the airport. “President Mugabe is a seasoned statesman and a founding father of Africa who is respected across the continent. In China, we also have the same people whom we hold in high regard.”
President Xi hailed President Mugabe for leading Zimbabwe on a development path and uncompromised stance towards external interference. He said the relationship between the two countries was premised on a mutual and win-win basis. “Last year Zimbabwe and China agreed to be good friends and brothers on an equal footing,” he said.
“The relationship between Zimbabwe and China has stood the test of time and is one of the best relationships between the developing countries.” President Xi said it was his hope that President Mugabe would lead the African Union to new heights as a respected statesman. Foreign Affairs Minister Simbarashe Mumbengegwi and his Chinese counterpart Mr Wang Yi, said the leaders had a successful meeting during a closed session at State House.
Minister Mumbengegwi said Beijing was an important friend of Harare, which vetoed a resolution by some Western powers that sought to impose devastating sanctions on Zimbabwe under the United Nations in 2008. Mr Yi said the visit by President Xi gave impetus to the flourishing relationship between Zimbabwe and China.
He said the two leaders agreed to upgrade the relationship from trade of primary commodities to investments and beneficiation.
‘Implementation of landmark deals begins’
December 3, 2015
Innocent Ruwende Senior Reporter
Government is working on a raft of measures including capacitating the Zimbabwe Investment Authority (ZIA) to ensure that the 12 landmark agreements signed between Zimbabwe and China to fund vital projects in key economic sectors are implemented, Macro-economic Planning and Investment Promotion Minister, Dr Obert Mpofu, has said. In an interview yesterday, Dr Mpofu said Zimbabwe was excited by the visit by the Chinese President Xi Jinping and was geared up to implement the mega deals.
“I have no doubt that these deals will be implemented. I had a meeting with ZIA and asked them about their preparedness and they said they are more than ready to work and make sure that these deals are implemented. “We are considering a raft of measures including popularising and capacitating ZIA so that it meets what is expected of them by investors,” he said.
Minister of Policy Coordination and Promotion of Socio Economic Ventures in the President’s Office, Simon Khaya Moyo, concurred with his counterpart, saying both sides should start working to ensure ordinary citizens realised the results. “There is no doubt we are going to implement the deals which were signed after a great visit by President Xi. All the agreements signed are in support of the country’s economic blueprint Zim-Asset.
“We must start preparing to make sure that they are implemented by both sides. If they remain on the table, they will be of no use to both nations hence we will work with speed to ensure that they are implemented. The message from the two Presidents (President Mugabe and President Xi) was very clear, it is not business as usual,” he said.
He said the parties involved must ensure that ordinary people benefit from the investments adding that corruption would not be tolerated. Economist, Mr Pascal Mandeya, said the key issue was to depoliticise the whole process of implementing the signed deals.
“There is no need to criticise these deals just because you belong to a certain political affiliation. If implemented properly these deals will help the nation.
“The deals also call for a revaluation of our national development plans including programmes like Zim-Asset so that we can accommodate the new realities brought about by the deals. Most importantly, we need to allocate and channel resources to these areas so that we do not hold back progress because the deals require that Zimbabwe meets its obligations,” he said.
Another economist with a local bank, who spoke on condition of anonymity, said Zimbabwe was ready to hit the road running and sooner or later, results will be there for everyone to see. “Zimbabwe is endowed with vast natural resources — minerals, flora and fauna, good climate, rich soils among others. What is lacking is funding and infrastructure to kick-start the processes. With these deals, Zimbabwe’s economy will have a different complexion in the next few years,” he said.
Two of the deals signed are private sector-driven while new agreements, cover key sectors such as infrastructure, telecommunications and energy. Finance and Economic Development Minister, Patrick Chinamasa signed two loan agreements for the expansion of Hwange Thermal Power Station and TelOne’s fibre optic project with the chairperson of the China Eximbank, Ms Hu Xiaolian.
On Hwange Power Station expansion, the Zimbabwe Power Company represented by its managing director, Engineer Noah Gwariro and Sinohydro represented by chairman of its parent company, Power China, Mr Yan Zhiyong, signed a cooperation agreement on Hwange 7 and 8 project.
The expansion project at Hwange will see Sinohydro adding two units with a capacity of 600 MW.
Chinese group acquires stake in Sunlight Energy
December 3, 2015
Tinashe Makichi Business Reporter
Yunnan Linkun Investment Group of China has acquired a 50 percent shareholding in China-Africa Sunlight Energy and plans to invest an initial $700 million towards the development of Gwayi Coal-Electricity Integrated Project in Matabeleland North Province. This follows the termination of a joint venture between the initial partners Shandong Taishan Sunlight Investment Company Limited and Old Stone Investments, the local shareholders. The JV was terminated after Shandong failed to mobilise the required funding for the project.
The project, which was granted National Project Status by Government will see the group set up coal mining operations and construct a 2X300 Megawatts thermal power station. “We have secured a new investor to take up a 50 percent stake in CASECO from the previous shareholder; Shandong Taishan Sunlight. Efforts are being made to reimburse the company (Shandong) its initial investment of about $12 million.
“In fact, the new investor is willing to reimburse provided the amount is verified as well,” China Africa Sunlight chief executive Mr Charles Mugari told The Herald Business in an interview on Tuesday.
Mr Mugari said the new investor has capacity to move the Gwayi project forward. An immediate capital injection for running the company will be made available while the company is also engaged in negotiations with a Chinese Bank to secure a loan by the end of this month.
“We have concluded the indicative term sheet. Conclusion of the final loan agreement will be done by the end of this month so that an initial capital injection of $700 million into the project will be done by the beginning of next year,” said Mr Mugari.
He said the termination of the previous joint venture was mutual and there was no bad blood between the two parties. Mr Mugari said since the coming on board of the new investor, CASECO has identified a new EPC contractor, Sinohydro Bureau 3 Corporation Limited and the Bank of China is also expected to fund the project.
“Sinohydro engineers were in Zimbabwe last October for due diligence. A document was completed and we went to China for the signing of the EPC contract on November 18.
The signing ceremony was witnessed by Energy and Power Development Permanent Secretary Patson Mbiriri and Defence Permanent Secretary Martin Rushwaya and the Zimbabwean Ambassador to China, Paul Chikawa,” said Mr Mugari.
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