Zimbabweans urged to understand and embrace Chinese investment
By Caleb Chikwawawa
Southern African Research and Documentation Centre Executive Director Munetsi Madakufamba says Chinese investment in Zimbabwe requires close understanding of both the opportunities and challenges it presents.
Mudakufamba was speaking at the Zimbabwe-China roundtable discussion in Harare on Tuesday.
The indaba aimed to strengthen the Zimbabwe-China Business Cooperation.
Mudakufamba said “China’s engagement with Africa is a complex and multifaceted relationship that requires a nuanced understanding of the opportunities and challenges it presents”.
He noted that 50% of investors coming into Zimbabwe were from China, adding that the investments were important for the country, which broke ties with the West following a diplomatic fallout at the turn of the century.
“In the context of Zimbabwe, Chinese investment has been a significant driver of economic growth, with over 50% of current investors coming from China, according to the Zimbabwe Investment and Development Agency (ZIDA).
“China’s ‘Going Out’ strategy, which encourages Chinese companies to invest abroad, has led to increased investment flows into Africa, with Zimbabwe emerging as a key destination.
“Chinese investment in Zimbabwe can bring much-needed capital, technology, and expertise, which can potentially unlock the country’s vast economic potential and can contribute to its development aspirations.
“As Zimbabwe seeks to revive its economy and achieve upper-middle-income status by 2030, Chinese investment can play a critical role in supporting the country’s industrialisation efforts,
creating jobs, and stimulating economic growth.
“In fact, Zimbabwe’s strategic location in Southern Africa, coupled with its rich natural resources and favourable climate, presents a compelling case for investment, particularly from China.
“As we all may be aware, Chinese investments have been particularly crucial during times of economic sanctions imposed on Zimbabwe by the West.
“With significant investments in various sectors, job creation, and infrastructure development, China’s partnership with Zimbabwe has contributed substantially to our economic growth and development.”
Mudakufamba, however, noted that Chinese forays into Zimbabwe have brought its own challenges.
“.. Foreign Direct Investment from China also presents challenges,” he said,. “It can be observed that Chinese investment in Africa is not without its controversies, and there are concerns about the impact on local economies and societies.
“There have been environmental, labour and many other social concerns raised across the continent, Zimbabwe included.”
He said it was “crucial” for Zimbabwe to ensure that policies are competitive and attractive to investors while protecting local human capital and the environment.
Mudakufamba said discourse on Chinese investment in Zimbabwe should focus on key areas such as what needs to be done to keep investment in the country, human capital development, labour laws, environmental standards, and reserved sectors.
The Second Edition of the China-Zimbabwe Business roundtable was hosted by the Southern African Research and Documentation Centre and the China-Zimbabwe Exchange Centre.
