China refuses #mugabe’s request for Zimbabwe bailout

via Much-touted billion $ China bailout illusive 11/03/2014  by CSMonitor.com NewZimbabwe

LAST November, China pledged to give Africa some $1 trillion in aid over the next 12 years

At the time, a clearly bedazzled Mugabe regime, just re-elected in late July, told itself, its creditors, and citizens that Zimbabwe would reap a windfall of some $30 billion in Chinese loans and grants. The regime sent a series of delegations to Beijing for that purpose.

President Robert Mugabe and his government need the money. Zimbabwe is isolated, financially tattered, and increasingly desperate economically. Its financial obligations are $11 billion in arrears, and with its ongoing standoff against the West, the nation is unable to borrow from the IMF, the World Bank and the UN.

The country has no viable industries, and with more than 85 percent of the population unemployed and an estimated 20-25 percent of Zimbabweans living outside the nation, an inability to secure a stability loan could breed serious political problems.

It appeared that China would step in, solve the autocrat’s problems, validate his so-called “Look East” policy, and gain a stronger foothold in southern Africa.

The bailout would help stabilize the government and pacify a growing trend of middle- and working-class anger at the poor economy and corruption. The aid was being called a “friendly boost.”

Yet in what appears to be an embarrassing slap, China’s much-touted bail-out – or at least Mugabe’s portrayal of it – now appears to have fallen through.

Mugabe’s spokesmen have steadily downgraded the size of China’s support – from $30 billion to $10 billion, to $3 billion, and then, in February, to $400 million.

Now it appears China won’t play Santa Claus at all. In what may be a harbinger of a tougher approach, it last week apparently ruled out any direct aid.

“We don’t normally provide budgetary support to other countries but we try to help Zimbabwe in our own way,” the Chinese ambassador to Zimbabwe told reporters.

Chinese officials and the business community in Shanghai told the most recent Zimbabwe delegation, headed by Finance Minister Patrick Chinamasa, that he needed to offer bankable projects instead of promises like the one he tried to sell Beijing to get cash.

Chinamasa had sought funding for the giant Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset), a $27 billion plan to bring economic revival. Zimbabwe’s entire annual budget is $4.5 billion, to give a sense of how large the request was.

Chinamasa’s delegation tried to secure loans using the nation’s mineral reserves as security. But the Chinese demanded an accounting of when Mugabe’s projects would break even, and how a payment plan would work – which Chinamasa did not appear to have read

“Mugabe cannot economically hold fort from now till 2018 without a huge financial boost, so we are likely to see more trips to China,” says Clive Moyo, an economic analyst based in Johannesburg.

“But, as we have seen in past times, such trips have mostly been fruitless when they concern huge financial aid, yet we keep trying.

“We are now like gamblers who keep putting money and efforts toward trying to land the jackpot, only to see yet another heavy loss. Unfortunately, no one else can bail us out, so it [is] a vicious cycle of hopes and heartbreaks.”

Since their election victory last July 31, the Zanu PF government’s pleas for funding have gone unheeded, as more and more doors seem to be closing in their bid to turn around an economy that has faced 15 years of questionable management. Earlier this winter, Chinamasa failed in trips to Washington to secure IMF and World Bank loans.

The African Development Bank estimates Zimbabwe needs $14 billion to pay back lenders and be eligible for aid that stopped in 1999 because of arrears.

Tagged with:
Posted in the latest articles
53 comments on “China refuses #mugabe’s request for Zimbabwe bailout
  1. Zen says:

    As Bob says countless times”we are a sovereign state and will never be a colony again! ”
    He should also mention “but we’re completely dependent on other countries to fund our budget!”

  2. ZimJim says:

    Yo! Bob! GAME OVER!
    China did not become a financial giant by being stupid!
    They know the “aid” would go straight into ZANU-PF back pockets.
    You tried to sell-out and got caught-out.
    “Cheats never prosper”, and you’ve finally run out of options.

  3. John Thomas says:

    These ZANU vermin still think it is 1980. The world has changed. Everybody knows how these comrades are.

  4. me says:

    Many well wishers will help zim the moment we become serious. How does a nation that priorites ministerial cars ahead of feeding/sheltering tokwe mukosi victims go around cap in hand for money from other proud nations? The Chinese know us well that hapana zviripo. Kana makatadza kudzosera all the loans that you got in the past how are you going to repay this one?

  5. Lindy Lou says:

    They,Mugabe,Disgrace and friends have stolen billions in aid,diamonds,gold.When are you people going to wake up and face reality.Do you want to remain in abject poverty?Is this what you want for your children? If so I have nothing but contempt for the whole lot of you.You talk about the Great War of Liberation and Mugabe,ZANU as the liberators.Liberators of what? To steal pillage and leave you all as peasants forever.
    God help you because unless you help yourselves he is your only hope.Look upwards people,perhaps Mana will fall from Heaven.

  6. Reverend says:

    I am reall glad China has opted out BUT the are going too whittle away at this country untill it becomes a state of China. Im afraid these Chinese are like little yellow ants that will destroy, cause anarchy and take over the colony and build it under their terms and design. They have contaminated the world, even the great US of A. Im afraid they have a twerp in leadership there who is trying the dictator role too.

  7. Sonofngwazi says:

    Damn!! Who will loan crooks earning as much as $510k .The whole world is watching

  8. Sonofngwazi says:

    $510k per month?? KUBA KWEBENZI

  9. Mlimo says:

    Zimbabwes situation is a lot worse than anyone can imagine and sinking fast . I doubt the money requested if tripled will be enough. I see Zimbabwe as a failed state totally defunct. We should bury the fools who voted for zanupf with Mugabe.

  10. Ndebvu Mukomichi says:

    Keep on Keeping on:

    We have been classified as a failed state fo the last donkey years- but surprise suprise we are still here as a nation. We even have some pisotives to show for it:

    1. Best in education on the continent.

    2. Only African country to correct colonial wrongs – land-wise.

    3. Ready to face any challenge – head on, with RGM the master liberator.

    Our people are resilient and industrious and they are prepared to stare down the international bully- boys where it concerns our God-given natural resources.

    Simuka Zimbabwe- Keep marching on Zim.

    • Saddened says:

      Sure ‘Ndebvu’ & what are the consequences
      Educated people who can’t find employment so they go elsewhere & help build up other countries.
      Land returned but still we can’t feed ourselves so we beg for food.
      Ready to face any challenge when we can’t even pay over the deductions of civil servants.
      Dream on as you obviously don’t live in the real world!!

    • easily fooled says:

      I think you have a problem of thing using something else other than your brains

    • munzwa says:

      Who and how will”we” stare down the bullies, will the chiefs make any sacrifices???

    • Reverend says:

      I think ndebvu you are one of those getting the BIG salaries, but for sure you are not living in the same Zimbabwe as I am. Maybe your ndebvu needs trimming!

    • ALL EYES ON ME!! says:

      Ndebvu
      Just a reminder, its day time – wake up and stop dreaming wena gukurahundi!!

    • NBS says:

      Yes, Ndebvu. You say we are the only country to have corrected colonial wrongs with the land. No one that I know ever disputed that the land issue needed to be addressed but the way in which it has been done has been one of the most ungodly and unwise things I have seen in our nation after the Gukurahundi. That so called land reformation has totally destroyed this nation and wasted untold billions in infrastructure. Now we import food from Zambia grown by former commercial farmers. How crazy is that. Not one shred of wisdom, fairness, justice, mercy or common sense was used during this whole issue which is on going. It was run on anger, fear of losing political ground, selfishness, revenge, a total lack of any mercy for any farmer or the farm workers and their future; the Lord has shown me the whole thing had a very subtle and covert agenda. And look where we are now? It could have been done in any of a dozen equitable and fair ways and brought much to Zimbabwe and healing. Instead came the most unspeakable suffering and destruction. Of God? Most certainly not. But all things could be turned to the good if we were to seek what is right. “If you set out on the road of revenger
      dig two graves.”

    • Nkiwane (M'kiwa) says:

      20% “O” Level pass rate! Intelligent? Really? Hahaha. What is it with Zimbabweans continually saying how clever they are? It’s bizarre!

    • SureThing says:

      Ndebvu,

      1) Please provide details of this “Best Education on the Continent”. The last time I heard, Countries outside of Africa are paying for Zimbabwean children to go to Junior school.

      2) Land Wise, are you joking? Zanu-PF owns more white farms than any other Zimbabwean for their own benefits and Zimbabwe is now importing Milk etc from South Africa because they kicked off the few remaining Dairy farmers.

      3) Ready to face any challenge? Do you mean the Challenge of running a once beautiful and prosperous Country into absolute ruin yet again and to still blame the West for their “Sanctions”. I am laughing!

  11. chessplayer says:

    The Chinese are not easily fooled. How can you throw money into a bottomless pit. No one in their right senses is going to lend money to these gangsters.

  12. Jimbo says:

    A LOOTA CONTINUA!!!

  13. senzachena says:

    The cards are now on the table. Unless there is change the country will implode. Hundreds of thousand more will pour acrous the borders into surrounding countries, the military etc will mutiny and take to the streets as there will no money to pay their salaries. I hope they storm State House and take RGM, his darling wife and all the other trash and hang them from light poles!

  14. Roving Ambassador says:

    The Chinese are smart, they are waiting for the right moment ,then they will pounce. They do have a fuction in Zanu which they believe they can do deals with . They cannot trust Mugabe with all this chaos in Zanu. there is a Bhora musango element to this just to get rid of Mugabe. Hoping they self destruct.

  15. NBS says:

    Methinks the good Lord is pulling that dirty little mat of greed and selfishness out from under their designer shoes. They can’t say they were not warned because they were. ZPF, whatsoever you have sowed you will reap. And reap you will. a month or Every time a snout in the feeding trough takes home 310 per month or even 14kwith all those obscene perks it is as good as ripping the food off the table of the poor, needy and hungry. “You have destroyed your land and slain your people.”

  16. masvukupete says:

    And we all thought they had a better solution than what the MDC had. Alas they also thought they had friends with money. So Zimasset was based on FDI as well. I thot FDI was the biggest evil ever to enter Zimbabwe. I suppose if its the Chinese its not FDI but if its the West then its FDI. The same difference if you ask me. So what was all the noise for elections all about. The MDC and Zanu have the same strategy so why not join hands, vamwe nekokoko, vamwe nerimwe divi kutsvaka FDI yacho. What a tragedy this Bob of ours.

    • Reverend says:

      masvukupete, if you dance with satan you become his child. You cannot join hands with zpf and survive. The zanupf party are evil to the core.

  17. Jake says:

    Look at the Chinese leadership policy. A leader and his team have a 10 year mandate only. After that they all leave the stage. They don’t roll on for 30-50 years. The ‘Look East’ story was developed with the previous Chinese leadership, this new gang that started last year, will not fall into blind support of a desperately ailing economy.

  18. Rwendo says:

    “We don’t normally provide budgetary support to other countries but we try to help Zimbabwe in our own way,” Election rigging, internet snooping, military academy… etc perhaps?

  19. Godonga says:

    The chinese thrive on Trust and Honor in both word and deed. Who will trust leaders who say ” Come invest in my country and i will take 51% of your money”!

    The problem is Mugabe always puts loyalty first before ability. No wonder you end up having an ignoramus like Xavier puking opaque economic policy!

    You reap what you saw baba and if your Farm Manager is Kasukuwere then you are destined to harvest more thornes than corn.

    Bayethe Mzilikazi.

    • NBS says:

      The Chinese government know nothing of trust and honour. They have but one agenda in Africa. If u think being colonised by the Breetish was horrible hokoyo! If you know anything of biblical prophecy you will know the ‘agenda of the kings of the east.” And they want Africa. A Chinese military air base in our Eastern highlands. No thank you! ZPF are so desperate and so clueless that they are being beguiled by a nation that thinks we Africans are a bunch of greedy airheads and very stupid to boot. It is amazing what blindness does. Ndebvu please wake up and smell the proverbial coffee along with the whole of ZPF. We are selling our souls and our nation to China who do not, in the bigger picture, care a hoot for us.

  20. E Makhate says:

    Maybe Chinamasa can borrow from Bob, Grace, Obert, Gideon and Chombo for budget support. The Chinese are obviously too clever to be duped by mabharanzi or madinga eZanu. How can they try to use minerals in the ground as security. A stupid proposition from a stupid party full of nonsense.

  21. easily fooled says:

    Zimbabwe can look at ways of releasing money from Chombo, Mpofu, Chiyangwa etc into the economy in a clever way…….without making the bona v chikore mistake. One way could be suing them for corruption, chiyangwa v stoneridge house owners, then he pays lawyers, who buy fuel to court, buy court gowns perhaps locally, then buy basic using chiyangwa money. Someone from a reasonably poor family anogona kunyenga mhandara dzaChombo dzisiri kuroorwa dziya, poitwa zimuchato (unongozivawo zvinoitirwa tsikombi….bona v chikore is a classical case.) Pofa mombe 90, potengwa cake rinorema 79 (40 years dzemwana vachombo musikana ne 39 dzekarombe kacho) knowing chombo, he ll also spend on dressing up karombe-kwambo kake….to be up standard wo ka…..then he will try to do better than the bonas of this world. Hoping kuti the money will be spend in Zim. Kuna mpofu, perhaps zvitokoroshi will be best, mhuri yose ikafuma iine manyoka, before going kundorapwa abroad, they first ran around……manyoka munoaziva guys, unotozofamba zvave nani…..meanwhile ma pharmacy, ma local doctors will make money…..just the tip of the icebag……brainstorming

  22. munzwa says:

    They, anyone, will be looking for bankable projects, the world has woken up to the fact that zauu is not a bankable proposition, they just never have or never will repay any loans,

  23. easily fooled says:

    Ndakanganwa Gono, in addition pane ichaenda kuna biti, maVideo nemafoto aye anobuda Gono making love to Grace Mugabe ngaachibude. Sekuru mugabe ll die of bp, gono goes to jail, pumps up more on legal fees, zi big funeral rabob richiitwawo uku at a very huge amount…..lala zviya istate futi inobhadhara

  24. ALL EYES ON ME!! says:

    Hitting the gukurahundis hard. Now, they will try looking up to the heavens for salvation, after the failure of their look west look east policies.

    Now gukurahundis know for sure that, there is no such a thing as sovereignity in the real world of today that we all live in. Sovereignity is mere wishful thinking!!

    • Small axe says:

      Apolitical on a few days off wham!!!! Ndebvu Mukomichi returns to cover.

    • Doctor Do more says:

      My friend “all eyes on me”, you will be shocked. If the “look east” policy fails, a new “look South” policy will pop up, if it also fails, there will be a “look north” policy to replace it. If it fails, there will be a look “North East”, or look “South East”, or “North north east”, “north north” or “south south”.If there was hyperinflation in broad daylight, then nothing is imposible- including hyper-inflating policy directions to “look south north” “look East-west”. “We will calmly confront all possibilities” said Adolf Hitler.And “Providence” is on our side!

  25. Don Cox says:

    “China did not become a financial giant by being stupid!”

    They became a financial giant soon after they stopped being stupid. Mao’s rule in China was even more disastrous than Mugabe’s rule in Zimbabwe. Few things damage a country more than a Marxist or Maoist dictatorship.

  26. Wilbert Mukori says:

    To rig the 2013 elections Mugabe had been spending money as if there was no tomorrow. It was only after the elections when bills started to flow in that the nation realized just how reckless Mugabe had been. Money meant for whole ministries had been diverted to his vote rigging operations with the Ministry of Higher Education getting a mere $50k out of a budgeted allocation of $384m, for example.
    Zimbabwe’s economic situation after the election was terrible but was made even worse by reports showing that many government owned or controlled institution were broke because of the rampant corruption that had been going on. Mugabe’s own extravagant spending at his birth day and then his daughter’s wedding plus his own vast accumulated wealth from corruption made it impossible to punish his corrupt subordinates.
    It is an understatement to say Mugabe was desperate for this Chinese bailout but no one else showed any interest. And now the Chinese are telling him they too are not interested is a hammer blow to Mugabe personally and to the Zimbabwe economy – both have been very frail!

  27. Tongoona says:

    True Chinese cours have come out for all to see. They now don’t care because they took out enough diamonds and now there is nothing to take because diamonds have gone low. ZANU PF deserve being rebuffed by the Chinese. Makaura maZANU PF there is nothing for nothing. Kandiro enda kandiro dzoka. ZANU PF yatadza kudzorera kandiro kemaChaina.ZimAset yatofoira isati yatanga.

  28. Roving Ambassador says:

    Zimasset, zanuass.

  29. adam jones says:

    This Mugabe is a fool. Him and the rest of Zanu. He is in court in China fighting over a multi million house that he initially claimed was not his. Obviously because he bought it through a third party using stolen money. Now they expect China to fill the holes that they are creating? Where is Mavhunga avadire diesel?

  30. Joe says:

    5 million for his daughters wedding and he goes with a begging bowl to china. Wake up stupid do you really think the zhing Zhongs cannot see what you are doing. Cut the snakes head now

  31. UMAARI says:

    China is our target as African, no way for EU

  32. Mark Talbot says:

    Most world aid still comes from the hated West. Almost none comes from Russia and China. What little aid comes from them is usually buying something. China dangled some aid promises and laundered some blood diamonds and now they have a new colony in Africa.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>