Shunned by Western investors, economically ravaged Zimbabwe has
turned its sights to the East to improve its finances.
International isolation and a bad credit record have forced Zimbabwean
president Robert Mugabe to seek economic support from China, the world's
second-largest economy.
Since 2002, the European Union and the United States have imposed sanctions
on the mineral-rich southern African country amid reports of human rights
abuses, political violence and the controversial land reform policy
targeting white farmers.
China has moved to occupy some of the void created by the exodus of Western
businesses and now Zimbabwe's once-empty stores are filled with Chinese
products.
"We are happy to have these people coming to Zimbabwe opening factories and
shops, because when you compare to last time, there were more unemployed
youths," says Never Jacob, a Zimbabwean store manager.
"For me, I can say (of) the coming of Chinese to Zimbabwe, we appreciate
their coming," he adds.
China has been doing business with Zimbabwe for years -- Chinese foreign
minister Yang Jiechi has said in the past that the two economies "are cut
out for each other."
I can say (of) the coming of Chinese to Zimbabwe, we appreciate their
coming.
--Never Jacob, store manager, Zimbabwe
China has also called for the lifting of sanctions against Zimbabwe, saying
that no country has a right to interfere in the internal affairs of another
state.
And last month, it announced a $700 million-loan aimed at, among other
things, rejuvenating Zimbabwe's agricultural sector.
But local economists say, overall, Chinese investments in Zimbabwe are
difficult to quantify.
"Some of the projects are not easily accessible to the public and we are not
given many details about how much work is done or what production has taken
place," says economist John Robertson.
CNN's attempts to get figures from the Zimbabwean government about its
economic partnership with China were unsuccessful.
But according to figures obtained from the Chinese embassy, the trade
between the two countries totaled $560 million dollars last year -- just
under half a percent of total China-Africa trade in 2010.
Chinese imports made up nearly 60% of that business, with Zimbabwe importing
mainly mobile communication hardware. Its number-one export to China was,
apparently, tobacco.
The Zimbabwean Minister of Investment Promotion says the Chinese are mainly
interested in mineral resources, including diamonds.
Last year, Zimbabwe's efforts to improve its fragile economy seemed to be
given a boost when the country was allowed to sell diamonds from its
controversial Marange fields.
There are currently five companies -- two of which are Chinese -- with
licenses to operate in the diamond fields near the Mozambique border.
These mines are under export controls following allegations of human rights
abuses by Mugabe's Zanu-PF party. China is said to be complying with those
international controls.
Zimbabwe's finance minister Tendai Biti, whose party, the Movement for
Democratic Change, formed a unity government with Mugabe's party two years
ago, says that diamonds have not yet provided the financial boost that many
would have expected, contributing only $35 million to the country's coffers
last year.
Mugabe's Zanu-PF party denies accusations of looting and abuses, while Biti
blames smugglers for robbing the country of much-needed revenue.
"These diamonds are alluvial, so you can literally mine them with a spoon or
the sole of your heel," says Biti.
"They are located in a place that is 66,000 hectares, so that's half the
size of the United Kingdom, so what it means is that there is porousness --
anyone can virtually walk in there and pick stones," he adds.
China has been silent on the issue, choosing rather stick to its policy of
non-interference in the internal matters of other countries.
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