Zimbabwe and China are forging stronger economic ties, signaling potential growth for both nations. The bilateral relations received significant attention following the recent Zimbabwe-China Business Forum, where leaders from across sectors came together to explore investment opportunities. It seems the Chinese are not just seeing Zimbabwe as another partner; they appear to have strategic interests, possibly paving the way for Zimbabwe's entry as an official member of the BRICS group.
During the forum, Zhou Ding, the Chinese Ambassador to Zimbabwe, highlighted the impressive growth between the two countries, reporting bilateral trade reaching $3.12 billion this year, which marks a 29.9 percent increase from the previous year. This growth is noteworthy, especially as Zimbabwe reported over $1 billion trade surplus, largely due to exporting goods worth $2.1 billion to China.
Zimbabwe's exports to China consist of various commodities including mineral ores, macadamia nuts, tobacco, and citrus fruits. Allan Majuru, CEO of ZimTrade, emphasized Zimbabwe’s ambition to solidify its status as China’s key economic partner within Africa. “We see China not only as a trade partner, but also as a source of expertise, technology, and investment — all of which we need for our growth!” Majuru remarked.
Although Zimbabwe had submitted its application to join BRICS earlier this year, it was not among the countries invited for full membership during the latest summit. Instead, the bloc decided to extend partnerships to selected countries. Regardless, Zimbabwe seems determined to cultivate relationships with BRICS nations, eyeing future membership. Tellingly, Zimbabwe's government is prioritizing its own currency, ZimbabweGold (ZiG), over the US dollar, reflecting its strategy to reduce dependency on the dollar amid global financial shifts.
Recalling the discussions within the Business Forum, stakeholders assert this partnership has laid solid groundwork for future collaboration, targeting increased economic activity encompassing trade and strategic investments. Should BRICS expand its membership after 2025, Zimbabwe is likely to be on the radar as China boosts its support.
Meanwhile, Zimbabwe's government is also recognizing the potential of Chinese expertise to catalyze its own industrial ambitions, especially within its manufacturing sector. Christopher Mutsvangwa, from the ruling Zimbabwe African National Union-Patriotic Front (ZANU PF), stated, “China has played a pivotal role, with significant investments flowing, particularly aimed at revitalizing our iron and steel production abilities.” This sentiment emphasizes how China's ventures could redefine the local industry.
One of the notable contributors to this industrial growth is the Chinese company Tsingshan Holding Group, which has made substantial investments. Their local subsidiary, Dinson Iron and Steel, commenced pig iron production at its facility located at Manhize, contributing to Zimbabwe’s ambitious goal of resuscitating its once-thriving steel sector. Having vast iron ore, chrome, and coking coal reserves, Zimbabwe aims to transform its status, positioning itself as one of the leading exporters of steel products across the region.
Mutsvangwa spoke optimistically about the future of Zimbabwe's steel industry, expressing confidence based on China’s proven capabilities. “The future of the steel industry is incredibly bright. We foresee China’s expertise enhancing our production capabilities, and generating much-needed growth,” he stated.
Leveraging Chinese investment is not limited to just the steel sector. Zimbabwe is exploring opportunities to shift its economy from merely exporting unrefined minerals to creating steel and other value-added products for global markets. This strategy includes tapping its rich lithium reserves to support the burgeoning field of new energy vehicle production, wherein China leads globally.
“We expect substantial Chinese companies to introduce cutting-edge technology related to battery manufacturing, as well as electric vehicle production. This collaboration could help Zimbabwe’s economy pivot and cater to environmentally friendly demands,” Mutsvangwa added.
Investment also promises to impact related sectors, including transportation infrastructure. Mutsvangwa pointed out, “With boosted mining investments, we anticipate significant infrastructure growth to meet industry needs.” He acknowledged the geographical challenges Zimbabwe faces due to its distance from major shipping routes, but sees the investments sparking transformational change.
Reflecting on past successes, it’s noteworthy how Chinese machinery has already radically transformed Zimbabwe’s gold mining sector, creating new models of operation. Mutsvangwa is confident this successful outcome can be mirrored across other sectors, increasing prospects for younger miners entering the industry.
Separately, the Zimbabwe government is also evaluating importing Chinese irrigation technology to uplift its agriculture. “China is currently leading globally with innovative irrigation practices,” he noted, hinting at the potential for agricultural growth as infrastructure develops with Chinese assistance.
What remains clear is Zimbabwe is not just aiming for short-term gains from its relationship with China; it’s seeking to embed long-term strategies powered by international partnerships. The dynamics between Zimbabwe and China hint at forthcoming opportunities, highlighting the potential for innovation and growth across multiple sectors.
Overall, as Zimbabwe and China bolster their economic ties, the outcome could yield significant strides for Zimbabwe, benefiting from technology and investments, and potentially paving the way for joining influential global alliances.
