Chinese exploiting Zimbabwe: Analysts

THE Chinese have in the last few years made their presence in Zimbabwe felt through several controversial projects.

Report by Phillip Chidavaenzi

The government has, however, insisted that the projects are part of a broader policy to strengthen ties with China, touted as the strongest emerging economy in the world.

But there is widespread suspicion that this is a spite strategy against Western countries miffed by Zimbabwe’s unflattering human rights record.

Current projects include a hotel and shopping mall in the wetland close to the National Sports Stadium (NSS), a hotel in Mutare, a hospital in Mahusekwa and state-of-the-art defence college in Harare.

The government is also accused of having taken over most of the lucrative diamond mines in the country through joint ventures, a move observers contend is no different from mortgaging the country to the Chinese.

Prior to these projects, the Chinese were accused of opting to do “small businesses” in foodstuffs, household goods and clothing which — apart from crowding struggling indigenous entrepreneurs out of business and crippling the clothing industry — did not add much value to the country’s economy.

According to a development consultant, Maxwell Saungweme, the Chinese forays into the construction industry were the clearest indications of their intentions to have a foothold on Zimbabwe in some new form of colonial hegemony.

“To demonstrate that they are here to stay, just as the British settlers did during colonialism, the Chinese are building Chinese hotels, supermarkets and temples all over. These sell Chinese foods and products, thereby reducing the benefit Zimbabwe should get from selling its products to tourists,” he said.

After getting a firm grip on the country’s retail, construction and mining sectors, the Chinese are also slowly clawing their way into the tourism industry. Apart from the two hotels already constructed in Harare and Mutare, there are three more luxury hotels set for Victoria Falls and Mutare.

Political analyst Alexander Rusero said although at face value capital projects run by the Chinese could be considered more beneficial to the nation than their retail enterprises, there was much bigger, but compromising politics at play.

“There is a problem in that most of these Chinese companies sub-contract other Chinese companies to do work that should be done by local companies. Most of the locals are employed to do menial jobs with poor remuneration and there is much disregard for labour laws,” he said.

Rusero said the government deliberately turned a blind eye to the abuses because China has brought them much business after most Western countries turned their backs on the Mugabe regime before the government of national unity came into place.

“Our government has behaved like a desperado, casting a blind eye on abuse of labour laws and ignoring labour unions which made noise about the abuses because there is a horse and rider relationship, with Zimbabwe being ridden by China,” he said.

He added that Zimbabwe owed China a lot since the latter, by virtue of their permanent seat on the UN Security Council, vetoed every attempt by Western countries to have the UN intervene in the country’s political turmoil.

This further explains why the government has not stopped the construction of the hotel and shopping mall at the wetland near the NSS.

China has become a major player in the country’s economy through their State-owned enterprises like Anjin Investments — involved in a controversial diamond mining venture with the military at Chiadzwa — and Sino-Zimbabwe Holdings. According to Global Witness’ recent report, Anjin has the most lucrative diamond concessions given in exchange for the $98 million for the construction of the army’s National Defence College.

Sino-Zimbabwe also has an interest in agriculture through Sino-Cotton and chrome mining along the Great Dyke belt. The Chinese also have many other investments in different sectors of the economy.
Political scientist Freedom Mazwi reckoned that although there was much Chinese activity in diamond extraction, Zimbabwe entered the deals while already handicapped and the accrual of benefits was still far off.

“It is now three years since China made some major investments in the country’s diamond sector in Marange. The government was forced to enter into a partnership largely because it did not have the required capital to engage in mineral extraction on a large-scale,” he said. “However, up to now Zimbabwe is yet to reap benefits from these investments in terms of infrastructural development and revenues to the national fiscus.”

He concurred with Rusero that “the Chinese really like cheap labour” saying their treatment of employees marked them as slave masters.
Another point of contention has been the exemption of Chinese mining companies from the community empowerment crusade ran by Indigenisation minister Saviour Kasukuwere. The companies have been accused of environmental degradation.

Chinese nationals in the country, who are believed to be very secretive, reportedly shunned the national census conducted in August last year, with one enumerator quoted saying many of them could not speak English.

An official in the Economic and Commercial Counsellor’s Office at the Chinese Embassy in Harare, Rosalind Xue, said they did not have the exact number of Chinese nationals in Zimbabwe, but they were in their thousands.

“We don’t have an exact figure of how many Chinese are living and working in Zimbabwe now because of the mobility. But I believe there are thousands of Chinese nationals here,” she said.

She, however, said there were 53 Chinese companies registered with the Chamber of Chinese Enterprises in Zimbabwe with more than 1 200 Chinese employees. Most of the companies, she said, were privately run.

12 Responses to Chinese exploiting Zimbabwe: Analysts

  1. Munhu Mtema February 4, 2013 at 9:15 am #

    The phenomenon is called ‘ mashave ehurombo’ . When we came out of British colonialism. Our spirits of being slaves of other races who happen to have a fairer complexion to ours . Tiri rudzi rwehuranda . We dont believe we are able to stand only our own without some white or yellow person controlling us . Its more about culture than anything else .

  2. Mbizo February 4, 2013 at 9:48 am #

    Running away from a lion(west)seeking protection from a hyena(china)at the end you would be eaten zimbabwe,lobhengula blah,blah neshuga what abt cement in exchange for diamonds example defence college for diamonds,

  3. dennis February 4, 2013 at 10:12 am #

    Thats true Mbizo…..in other words thats being driven from the heights of prosperity to the depths of desperation.British were better than these Chineese in the sense that they paid people [employees] their salaries and wages where as those blacks including ministers and MPS who got vast tracts of lands have not been paying people ever since they inherited the land and for example i will give you a number of farms where this is taking place.Go to farms in the Raffingora area and carry out investigations on the following farms namely:Nyarugwe farms,Morton farms,Rufaro farms,Mavara farms and Madziwe farms.The list is endless but those occupying these farms are not paying former farm employees and if these employees demand their money they are told to vacate the farms.Saka tinosvika kupi nhai veduwe-e vanhu vachitambura munyika mavo zvakadai???????Right you guys have failed disimally now give those employees a small piece of land to grow their own crops hamudi,chivabhadharai ndipo hamudi,Saka toita sei?This is very disheartening guys i don’t want to lie.So,who is a better devil here?????????

  4. kumbi February 4, 2013 at 10:29 am #

    Hi Guys

    so so disapointed and heartbroken not an mdc suppoter I like zpf policies but not I cant believe they will do this sell us to the chinees ,turn a blind eye while they rip us employees off ,take over the retail industry…… they failed us just wish another party that is for zims and not a puppet of wesat and not zanu will rise God help us

  5. People Power February 4, 2013 at 10:45 am #

    Nyararari zvenyu maface angu. Maelections muna June 2013!!

  6. george bachinche February 4, 2013 at 11:08 am #

    Charlatan analysts.
    You need data to prove the claim of exploitation.
    In the UK corner shop and other retail outlets and take away food shops are dominated by Asians (i.e. Indian and Pakistanis). Does that mean they are explopiting the UK.

    Why don’t you yourselves operate the businesses that the Chinese are getting into?

    • kumbi February 4, 2013 at 11:28 am #

      accoding to zimbabwe law reatail is for local people and also unobva kupi iwewe????? can you answer that ?

    • mark February 4, 2013 at 11:32 am #

      tell me do you live in zim ?? look at the whole ajin saga and you compare zim to uk yours is also bad analysis

  7. Papaz February 4, 2013 at 12:29 pm #

    Haiwawo asi boorangoma rinonzi Bachince hamurizive? Siyanai naro rakaoma musoro. He is one type of person who will argue simply for the sake of arguing. Its neither here nor there that Chinese are renowned looters and exploiters. The first thing I would advocate after change is ma Chinese ese kumana, we really dont need them here.

  8. mark February 4, 2013 at 1:06 pm #

    but wat are chances the mdc will win wont zanu sadenly change and we have free and fair elections isnt that just a fantacy???

  9. Zims February 4, 2013 at 4:08 pm #

    Are they bound by Zimbabwe law ? Who are they handing over 51% of their company to ?

  10. how to spot fake designer bags February 5, 2013 at 3:06 pm #

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