Zim sign $213m deals with China

ZIMBABWE yesterday signed three agreements with China that will see the construction of the Parliament, high performance computer centre and rehabilitation of the Robert Gabriel Mugabe International Airport to the tune $213 million.

BY FIDELITY MHLANGA

Officiating at the signing of the agreements yesterday, Finance and Economic Planning minister Patrick Chinamasa said the framework agreement on the concessionary loan amounting to $153 million for the upgrading and expansion of Robert Gabriel Mugabe International Airport would be administered through the Export-Import Bank of China.

“The project entails the expansion of the terminal building, rehabilitation of the runway, installation of the communication system, refurbishment of the fire station and new satellite station,” he said.

The loan will be paid in 20 years (including 7 years grace period) at an interest rate of 2% per annum.

China also extended two grants worth $60 million towards the construction of new Parliament building in Mount Hampden and the high performance computer centre phase two at the University of Zimbabwe.

Also present at the signing ceremony was Foreign Affairs minister Sibusiso Moyo, Higher and Tertiary Education minister Amon Murwira, Local Government minister July Moyo and deputy Finance minister Terrence Mukupe.

Chinamasa said the support springs from the State visit by Chinese President XI Jinping on December 1, 2015 where he pledged to support the construction of the new Parliament building, adding that more deals with China were in the offing.

“China is the only source of infrastructure financing. If you look at Kenya, Ethiopia and the Democratic Republic of Congo their source of funding is China. We look forward to China and we have a lot to know from them. They are second largest economy after United States of America,” he said.

Chinamasa admitted that the country was failing to timeously service previous loans given by China for the past year or so due to the difficult economic environment.

But he, however, said today’s National Budget presentation will show that the country was back in serious business and set to be fully integrated into the international community.

Chinese Ambassador to Zimbabwe Huang Ping said China was committed to facilitate funds towards the construction of key projects in Zimbabwe.

“The Chinese government will continue to support the Zimbabwean government and people in their economic revival and social development. The agreement we have signed today is just a testimony of our efforts and our true friendship that withstands the test of time,” he said.

Zimbabwe has in the past received support targeting various projects in education, agriculture, energy, transport and communication.

The country sees China as its all-weather friend since looking East over a decade ago after relations with the West soured over human rights violations.

While other countries have benefitted with China investing heavily in infrastructure, Zimbabwe has been lagging behind due to policy inconsistencies.

24 Comments

  1. josphat mugadzaweta

    in return they will now loot platinum. is this ED is just continuing with mugabeism?

  2. Dhodha Remuganga

    Signing deals year in year out but no implementation,no tangible results, and no development. ZANU pf is just synonymous with failure. I wonder how these guys think.Mugabe signed thousands of those mega deals in China itself but nothing came out of it.Mnangagwa just needed to rule Zimbabwe but is clueless on the way forward.He just barks the words ,let’s grow our economy, but how,he seems unsure himself. His actions speak more of Mugabe’s errors yet his speeches seem reasonable!!!He is just too militaristic and war minded just like his mentor Mugabe. The day we get a truly civilian leader who thinks,talks and walks economics, that day our country,Zimbabwe will be great again!!!

    1. So what is wrong with signing a deal? Is is not prudent to wait for progress before being negative. China could not act on before simply because Mugabe had no succession plan and had inconsistent policies hence their investment would not be secure. I believe the ministers are just hitting the ground as promised, besides, isn’t just two weeks now since the President moved in?

      1. josphat mugadzaweta

        in democracy those successions plans are nonsense. this monkey called ED has kept all the geriatrics and thieves of the past 37 years so how does that help us?

        1. he couldnt do a complete overhaaul of the cabinet but its the voters decision nxt yer to choose the right people so he can choose from the right pool of individuals

  3. Misplaced priorities. Rehabilitation of Robert Gabriel International Airport surely can be a priority. High performance computer centre is fine but these other two projects are misplaced priorities. The amount involved is quite substantial and could be used say to buy drugs that we dont have at our hospitals.The Zimbabweans are saying please can you look at these pressing issues, shortages of cash, unemployment and you are busy building a new parliament. what is wrong with the current parliament for now? ED if you are not careful, opposotion inokurakasha come 2018. We cant afford to have such misplaced priorities of this magnitude any more.

  4. Can Zimbabweans safely convince the world that they have managed to replace the old Mugabe system with a new system that has the capacity to move the country forward????

  5. Misplaced priorities for sure, unless this was already on the pipeline.
    We now need to see deals that focus on revamping of our industries and mines and healthy sectors.

  6. A zanu pf project is really a disaster failure in whatsoever. How long has this Zanu pf regime been a friend and backed by China through their permanently failed look to the east policy? Zanus definitely don’t deserve to exist anymore in Zimbabwe. Bad and rotten brains.

  7. deal or debt?

  8. Zimbabweans are more interested in bread and butter issues.Zimbabweans now prefer loans and grants for opening industries and factories as they now need employment as a matter of urgency. Refurbishing buildings is not a priority at the moment this is were we fail as a nation because we do not prioritise correctly our needs hence we are not developing in terms of industry and commerce. China wants us to buy from them and that is the reason why they do not talk about loans for factories.

  9. With the current economic situation in our country is it the time to have a new parliament building. Hameno but one thing l know it will be the Chinese to be given the contract to construct whilst we have our own construction companies here. There are going to be under hand deals mark my words.

  10. I agree a new parliament building does not help to revive the economy. Dai ZANU mamboedzawo kuita zvinoita kuti ruzhinji rwevanhu ruwane mabasa, road construction, removal of policies that deter FDI such as the 51% stupid policy that benefited Kasukuvere. Please itai madeals anemusoro.

  11. lets remove this “opposition thinking” in our minds it seems zimbos are always nagative about their country .Rome was not built in a day. give him a chance. some are criticising his cabinet as full of dead wood. firstly ED did not come in with new MPs and our constitution clearly states that non MPs should not be more that 5 in cabinet. this simply means ED has to choose from the same pot which his predecessor chose from.Why are u not commending on technocrats he brought in like Chitando, 2 professors (tho 1 has to be dropped) and Mukupe, pple are simply concentrating on the nagatives.Biti who is a lawyer was the minister of finance noone complained but why are pple making noise about Chinamasa who also has the same legal back ground ? in the GNU MDC was given 13 slots in cabinet and they were all filled with pple from their party structures. if MDC thinks ED should have included pple outside ZANU why didnt they do the same during GNU. so a person is only a technocrat when he is outside ZANU ,

    1. josphat mugadzaweta

      you are saying nonsense. there is no proof of zanu building anything. its destruction galore. we dont have 37 years more to waste with these zanu fools.

  12. This is just the beggining. You aren’t seen nothing yet.Pres Mnangagwa had long done his work n deals.They are just pouring in now.The tape is open.Don’t forget priority is jobs for people.These 3 projects how many jobs and cash speculating ? Macro economics pushes GDP up very well.and you know you don’t choose grants and even loans.The donor or creditor chooses which project gives hisa return and help on social imbalances. Its not ttotaly your choice.Watch Ngwena in action now.The British are coming .They need farming since they out of Europe.Zim is their 1st choice of funding destiny.Don’t Stress.

  13. Tell them Dombo . Tell them the purpose of Macro projects.The Chinese are the best now on efficiencies in construction.They build a railway line in Kenya last year .It created 150 000 jobs and pushed up GDP by 4%.just one project, 400km railway line.So to start choosing when you are begging is not clever at all.

  14. Pama China hapana deal even if you ask the former President he will bear testimony to this, Chinese and Indians are very bad fellows to do business with and are after siphoning funds back to their countries and even if you look at the type of the investments there are meant for a quick return ,a case to quote is the junkies built by Mohammed Mussa along railway avenue ,the mall next to NSS . These guys there then invest in state of the art buildings back in their countries using profits from investments in our country, not even a single hotel etc to hell with their loans.

  15. MEANINGLES DEALS

  16. KKKKKK.MAONE !!
    I THINK IF THE 213M IS CHANNELED TOWARDS OPENING RUSTY INDUSTRIES AROUND HARARE LIVELIHOODS CAN IMPROVE.THEN TAXATION ON PERFORMING INDUSTRIES WILL CATER CONSTRUCTION OF THE LONG TERM CAPITAL PROJECTS SUCH AS THE AIRPORT. PARLY BUILDING IS A REVENUE EXPENDITURE AND CAN ONLY BE DONE IN THE LONG TERM ONCE OUR ECONOMY IS ABOVE BEGGING BOWL LEVEL

  17. Zanu Pf is a useless party and a party that needs to cease to exist for this country to move forward. Its old leaders are set in their old ways and the party is always magnet for greedy and selfish people. Looking at this deal, their priorities are all over the place and they seem clueless on fundamental things that need to be done to bring this economy up. 2018 elections cannot come sooner!

  18. @Jakky.No country is going to give hard cash and give you freehand to invest it to yo choice.Its economics of 1980.Europe will insist on projects to fund but done by their companies not Sisk or Kuchi.They bring them and you the recipient country provide labourers. Simple.Its take it or leave it and become a closed economy.We are broke, penny less.Our people need jobs and gvt can only influence this through Macro projects.Even IMF will not pour money at Reserve Bank nope.They will only pay our debts directly and help on policy formulation to determine GDP growth.When GDP goes up so does quality of living for citizens.Industry can only be grown by substituting imported products and localising manufacturing I.e .Delta substituted castle light from SA by producing a local one which has been largely accepted by the region outside SA.The only problem is RB can’t help them to upgrade capital to match demand.zI could go on sweetie.When we substitute the bond note for US$ , which the president is now looking at , you will witness serious growth on output and opportunity costs coming our way.

  19. how mush of this money is going into black Zimbabwean pockets. are we to be like most SA people boasting of good infrastructure yet starving at home and drowning in debt

  20. hahaha cant help but laugh at you defending mediocrity . ED ppl are all talk but no sense, how does building a new parliament using foreign loan bennefit the country or improve the GDP? Tichasvika muna april muchingotaura nezvemadeals

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