China demands minerals as security for ZimAsset bailout

via China demands minerals as security for ZimAsset bailout | SW Radio Africa by Nomalanga Moyo on Wednesday, May 7, 2014

The Zim and Chinese governments are reported to be working on a rescue package that could see ZANU PF receiving billions of dollars to fund its economic blueprint.

The blueprint, dubbed Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset), was at the centre of the ruling party’s poll manifesto, and promised the electorate a vibrant economy, and at least 2 million extra jobs.

“Judicious exploitation of the country’s abundant human and natural resources” would propel this economic programme to success, Zimbabweans were told.

Ten months later the blueprint has turned out to have been no more than a pretentious wish-list not premised on any feasibility plan.

The ZANU PF government says it needs $27 billion to kick-start the economy. But with no industrial activity or foreign investors coming into the country, raising the money is proving to be a huge challenge.

Senior ZANU PF officials control the country’s vast mineral wealth, but despite this, the party has failed to channel the proceeds towards national programmes.

Finance Minister Patrick Chinamasa has extended his begging bowl East and West but says lenders have declined to give Zim further loans due to the country’s appalling credit record.

However traditional allies the Chinese who had also seemed reluctant, have agreed to bail out the country in exchange for proceeds from the country’s mineral wealth, according to media reports.

This follows a proposal by the Zim government to use the country’s minerals as security, Chinese envoy to Zim Lin Lin is quoted in the State-run Herald as saying.

The financial package is likely to be in the region of $10 billion.

Another Chinese diplomat Han Bing told online news agency The Source that his government was “asking for collateral because it’s in accordance with rules and regulations when granting any loan.”

The deal further entrenches the Chinese presence in Zimbabwe’s natural resource sector, and one which they have jointly looted and plundered with ZANU PF for close to two decades now.

Accountability activist Farai Maguwu described the deal as disastrous and said it was wrong for the Zim government to be “trading off the country’s mineral wealth the way it is doing.

“The government should be doing a thorough exploration of what the country has underground, and then engage investors who can mine and trade in our minerals for the benefit of the country,” said Maguwu, head of the Centre for Natural Resource Governance group.

Maguwu said Zimbabwe was facing a crisis of reckless leaders who do not care about future generations hence they continue to mortgage the country to China.

“Zimbabwe does not need a loan to kick-start the economy. What we need is a conducive business environment that is attractive to genuine foreign investors.

“The problem with Zimbabwe at the moment is corruption, organised crime in the minerals sector, and that our government is choosing to engage the wrong people.

“Without addressing these issues, even if they get $100 billion, the economy will continue to backslide as the funds will be looted and they will still say the country has no money,” Maguwu said.

He said ZANU PF should, “normalise relations with the international community so that the country can begin to attract genuine investors not the fly-by-night type that just comes in to bleed the country dry.”



  • comment-avatar
    ZimJim 10 years ago

    The Chinese ain’t stupid, and they know that “Bob & Co.” is both dumb AND greedy.

    1. China gets Zim’s resources as collateral.
    2. They pay $10 billion (“Peanuts” for China)
    3. “Bob & Co.” steal the money, as usual.
    4. China gets a mineral-rich country by default! Bargain!
    5. “Bob & Co.” disappear to their various feathered nests.
    6. GAME OVER.

  • comment-avatar
    Jono Austin 10 years ago

    Actually Bob gets $10 billion then tells China to go to hell. They won’t be too bothered as it’s peanuts. Game set and match to Bob. He’s done it before to the West.

    • comment-avatar
      ZimJim 10 years ago

      Yeah, and that worked out REALLY well…..

      • comment-avatar
        Jono Austin 10 years ago

        Well he and his mates are multimillionaires. It is apparent that’s the name of his game. They live a great life. It is apparent that for them the National interest is irrelevant and has always been. They are there to get what they can for themselves (34 years) and they do a very good job. Diamonds anyone?

  • comment-avatar
    Chaka 10 years ago

    Another of zpf big mistakes

  • comment-avatar
    Senzachena 10 years ago

    “Zimbabwe will never be a colony again”. They are selling out the country and one day will wake up and find they have new masters who will be a hell of a lot worse than the previous so called colonialists. The Government are a bunch of desperate whores, dropping their nickers for anybody with the ability to sustain their evil lifestyle. Zanu Trash

  • comment-avatar
    Mena Bona 10 years ago

    As I have stated before. Mugabe and his party of looters will give the entire country and allow the Chinese to enslave the Zimbabwean people, in order to maintain their personal wealth and welbeing. When will Zimbaweans realize that, that kleptocracy feels nothing for them. Don’t they see Mugabe spending millions on a wedding, flying all over the world with his gang squirreling away fortunes from looted diamonds? Don’t they see how much wealth these people have created through stealing the Zimbabwean people’s resources? Just look at the wealth that just one of his cronies has accumulated that has only come to light, in its appalling entirety, because of a divorce. Every one of them,from the President down, is supposed to a ‘ Civil Servant ‘ which means that they are supposed to serve the country and her people, NEVER themselves! They have NEVER done this. Surely enough is enough, before you Zimbabweans wake up as slaves to the Chinese. They DO NOT LIKE AFRICANS. They love African, so called leaders, that allow them to expand China and steal resources. WAKE UP AFRICA before it is to late.

  • comment-avatar
    Mukanya 10 years ago

    Look East

  • comment-avatar
    masvukupete 10 years ago

    Zisco has the potential to contribute 1billion into the economy. We have not been operating it for the last 20 years, it could have raised 1/3 of the required funds in the past 20 years. The same with Dunlop, Zimcast, Zim alloys, Zimphos, Sable, Zesa, Bata, Wattle company, NRZ etc. At ther peak these companies could contribute more than 2 billion to the economy some through import savings, some through exports. Its only that we have a bunch of losers who only claim success where there is utter failure.

  • comment-avatar
    gorongoza 10 years ago

    motengesa nyika kumaChina…what will be left for future generations?

  • comment-avatar
    Petal 10 years ago

    What will be left for future generations?…….CHINESE NOODLES!!

  • comment-avatar
    Petal 10 years ago

    Look who is calling the SHOTS?!!

  • comment-avatar
    Petal 10 years ago

    Instead Air Zimbabwe it will be China Airlines!!!

  • comment-avatar
    Mark Talbot 10 years ago