ZIMBABWEAN coach assembler AVM Africa, in partnership with a local company owned by the Zimbabwe National Liberation War Veterans’ Association (ZNLWVA), is set to sign a billion-dollar agreement with a Chinese firm to set up a plant in Zimbabwe.
BY RICHARD CHIDZA
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According to War Veterans minister who is currently in China, AVM (formerly Dahmer), Power Zimbabwe and Chinese bus manufacturer BAIC Automotive Group Co (BAIC Group) will in early December this year sign a $1,5 billion agreement to install a coach plant in Harare.
“Cabinet has approved the project and we are looking at the final modalities before signing next month. We are promoting and engaging competent global industrial partners to work with them. We are identifying emergent global brand names to come and use Zimbabwe’s educated and disciplined labour force to produce world-class goods and services for export,” Mutsvangwa said.
“My ministry will be the incubator converting war veterans to entrepreneurs, while youths will be employed in their thousands, joining their counterparts in Singapore, China and Malaysia.”
Mutsvangwa is accompanied by AVM Africa chairman and Zanu PF Bindura North lawmaker Kenneth Musanhi, who is negotiating on behalf of his company.
AVM Africa, Mutsvangwa said, would seek vehicle models suitable for Zimbabwe buses and trucks.
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“BAIC will design a modern assembly plant funded by Chinese banks. Initially, BAIC will own majority shares in the project and progressively facilitate reverse shareholding in Zimbabwe’s favour,” Mutsvangwa said.
“This is in order to take advantage of technology and fast take-off of the project. The project will be signed in early December at the next China-Africa summit to be held in South Africa.”
He said the project would supply the Sadc and the Common Market for Eastern and Southern Africa regions.
Established 56 years ago, BAIC Automotive Group has, according to its, website become one of the five largest automotive groups in China. With its headquarters located in Beijing and at the Turin Styling Centre in Italy and production bases all over China, BAIC Group says it currently has around 90 000 employees.
It is one of the automotive groups in China with the most comprehensive portfolio of products, covering the full range from passenger to commercial vehicles.
