Zim, China sign nine mega deals

via Zim, China sign nine mega deals | The Herald  26 August 2014

ZIMBABWE and China yesterday signed nine landmark agreements that will see the emerging global giant from Asia providing financial support for the much-needed economic enablers in critical sectors that include energy, roads, national railway network, telecommunications, agriculture and tourism as part of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation.
One of the four pillars of Zim-Asset is the Infrastructure and Utilities cluster which spells out a number of major projects to revive the economy by rehabilitating, upgrading and building key physical as well as social infrastructure and utilities to enable the turnaround of the economy and create business and employment opportunities.

Funding was, however, a major challenge to achieving the goals of the Infrastructure and Utilities cluster, but thanks to close to a year of thorough negotiations that included several visits to Beijing by Zimbabwean officials and Cabinet ministers, nine solid funding commitments were made yesterday by the Chinese government in a development that is set to open a new page in the transformation of the economy by funding key infrastructure projects that create jobs and spur economic growth and development.

Government ministers from the two countries under the watchful eyes of Presidents Mugabe and Xi Jinping become the second major, cluster-specific statement since the launch of Zim-Asset last October; the first being the US$180million agriculture support facility that has since scored dividends for the Food Security and Nutrition Cluster which has ushered the country towards a path of national food self-sufficiency within the first year of the new Government that was sworn in on September 11 last year. The development impact of this agriculture input support facility on economic factors such as employment creation is yet to be assessed.

Finance and Economic Development Minister Patrick Chinamasa signed two master loan agreements with the China Export and Import Bank and the China Export and Credit Insurance Corporation. Minister Chinamasa told The Herald after the signing ceremonies that the agreements provided securitisation framework for infrastructural and productive sectors.

“We have signed agreements which provide securitisation framework under which projects in infrastructural and productive sectors can be funded,” said Minister Chinamasa.

“The agreements with the China Exim Bank puts into place a framework under which we can secure funding for projects in the productive and infrastructural sectors on a case by case basis that also puts into place securitisation framework on the basis of which we can then submit projects for funding. But that funding will only come from China Exim Bank.

“The agreement with the China Export and Credit Insurance Corporation is also providing securitisation framework for infrastructure and productive projects that can be funded by both the State and non-State financial institutions. It’s opening up other sources of funding. These projects will be anchored on securitisation.”

Contrary to media reports that Zimbabwe was to securitise the funding of the agreed projects with minerals, the fact is that no sub-soil assets were used to securitise the commitments whose security is enterprise-based and commercially pegged to the performance and cashflows of the state enterprises concerned be it Zesa, NRZ, NetOne, Zinara etc.

Minister Chinamasa said only viable projects would attract such funding, adding that the Zimbabwean delegation was not in China to look for budgetary support contrary to reports in some sections of the media.

“No country sets aside a lump-sum payment for no specific projects,” he said. “Projects must demonstrate their ability to pay for themselves. You will not come to China to ask for money to invest in a project that won’t pay for itself. That would not make economic sense”.

Minister Chinamasa said he also signed another agreement on economic and technical cooperation on provision of emergency food donation by the Chinese Government to the Government of Zimbabwe and a concessionary loan agreement for the NetOne Network Expansion Phase Two project.

Foreign Affairs Minister Simbarashe Mumbengegwi signed another agreement on behalf of the Zimbabwean Government on mutual exemption of visa requirements for holders of diplomatic and service passports. He also signed another agreement on the confirmed minutes of the Ninth Session of the Joint Commission of Economic, Technical and Trade Cooperation that met from August 21 to 22 in Beijing ahead of President Mugabe’s state visit to China.

Tourism and Hospitality Industry Minister Walter Mzembi signed an agreement between his ministry and the National Tourism Administration of China on cooperation in the field of tourism whose implementation will lead to an increase of revenues from Chinese visitors to Zimbabwe.

COMMENTS

WORDPRESS: 30
  • comment-avatar
    todii zvazvo 7 years ago

    Please tell us the quantum figure so that we can tell whether these deals are Mega or what?Securitization of Deals! whats that? Zim has no Assets of worth to pledge against any deal so who is being sold here?China knows that Mugabe wont last so they are now selling him a dummy to secure vast mineral wealth before he dies,idiots! Kwanzi $4 billion funding was about to be signed only to be told of Nine Mega deals China yava Makandiwa here? who perform miracles!

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    Child of God 7 years ago

    “We will never be a colony again” ………… Who owns Zimbabwe now???????

  • comment-avatar
    gwabu 7 years ago

    complete nonsense.

    feasibility studies alone will take not less than two years.
    people in zpf seem no to learn. this approach may not yield anything by end of 2018. eg putting NRZ into place without a functioning industry to utilize the utility will not achieve anything.what has happened to the zisco project? what will be different with these new projects.
    its damn stupid. what has killed NRZ or all the parastatals. if these are not addressed then there is nothing to celebrate from these deals.

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    avenger/revenger 7 years ago

    ” under the watchful eye of mugabe-boy ” ….as he directs the money laundering I into his Singapore bank account !!!!!!!!

  • comment-avatar
    avenger/revenger 7 years ago

    This academic economic piffle financial drivel is ” mumbo jumbo ” to the ordinary poverty stricken povo. Reminiscent of zimarset. Hold onto your balls for the final countdown !!!!!!!! Securitization means mortgaging off on the never never. You can bet the chinks are congratulating themselves for having taken the zpf suckers for a big big ride.

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    Michael Saruchera 7 years ago

    How many mines did you auction in the process. Mugabe and his party are clueless about how to revive the economy they destroyed. If a President is not aware of the goings on in the health sector because he is seeking treatment even for headache in Singapore how is it possible for him to revive the economy.Mugabe is now push his wife down the throats of his party members.

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    34 years in power/poverty. Now a Beijing colony. I don’t like those short karate boys. They’re up to no development at all.

  • comment-avatar
    Rwendo 7 years ago

    If the visit has so far yielded “nine solid funding commitments” that are mutually beneficial and above board, why all the ducking and weaving with the details?

    Be that as it may, and wary that economics and finance are not my fields of expertise, it sounds as though all that has been done so far, is the creation of a framework, guidelines or conditions for Zimbabwe to subsequently apply for funding, within the defined sectors and subject to approval by the Chinese.

    So the Chinese can choose to approve any submissions which sound viable and for which they can expect repayment (e.g. electricity generation or telecoms..), thereby investing money to drive their own economy (via Chinese contractors, Chinese manpower and Chinese equipment, parts, maintenance contracts etc).

    Reminding us that: 1. The Chinese did not get this successful by giving away money. 2, Beggars can’t be choosers.

    But let us see if we will get better details in due course.

  • comment-avatar
    Ndebvu Mukomichi 7 years ago

    Nyatsoteerera unzwe utongaa!
    Aaah muhofisi munaBhobho Nyatsoteerera unzwe kutonga.
    Watongwa negandanga- hauna zvaunoriita kani.
    Bob rules!, while talkers talk and sneerers sneer!

  • comment-avatar
    mandy 7 years ago

    China learnt its lessons in Libya where they lost close on $100 billions in investments after Gaddafi fell. Of course they were able to salvage was the 10 000 Chinese nationals who were now living inside Libya. This happened at a cost. In short the Chinese will not take a risk of investing in a country that is politically unstable.

  • comment-avatar
    Rwendo 7 years ago

    Yes, and this arrangement allows the Chinese to have follow up commissions to identify suitable projects etc. all the way until the December congress when things will get clearer.

  • comment-avatar
    Panda moyo 7 years ago

    Eee mandy.now you v got me realy scared.what if these people decide to help this party to stay in power fo ever

  • comment-avatar

    Contested 2013 election results,contested leadership and government in place and now controversial binding and dependence deals with the infamous Chinese in business and labour related issues.I curse the day Zanu pf was born and cherish the dawn of a free Zanu pf day in my life time.So help me God.

  • comment-avatar
    roving ambassador. 7 years ago

    They have always signed deals with the Chinese which have never materialised . The road from harare to Norton has been under construction for 20 years[I stand to be corrected] and never finished. They have just realised the Chinese company to build the 300megawatt power station cannot do it .
    Has anything changed to bring optimism. A big know.
    The Chinese masters will donate more guns and teargas to protect their interest. Just like the British did with the Maharagis in India, you only need a few rolls at the top on your side ,then you can control the country by remote. The Chinese have Mugabe and Munangagwa.

  • comment-avatar
    Zanu Slaya 7 years ago

    Giving away My Land. This is also my country so why is this fat idiot and his troop of thieves giving zimbabwe away to these Chinese locusts. When our land has been raped and cannot offer anything else they will leave for the next country . Scum

  • comment-avatar

    I think the Chinese will come unstuck as Zimbabwe does not have the expertise or will to create , remember zanu steal and destroy.

  • comment-avatar
    Miimo 7 years ago

    promises promises promises

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    If each Zimbabwean had a dollar for every memorandum signed by these people since the look East thing started we would all be rich. So much ink so little development.

    When you hear the screaming headline MEGA DEALS you think wow all our Christmasses have come at once. *sigh*

  • comment-avatar
    Godza 7 years ago

    Its all signatures, signatures and signatures. The intelligent Chinese are not stupid. They can’t anchor the sinking this titanic

  • comment-avatar

    Chinbobweans!!black and yellow.

  • comment-avatar

    ‘Zimbabwe not serious about foreign investment ’
    AUSTRALIAN ambassador to Zimbabwe Matthew Neuhaus has bemoaned the Zanu PF government’s lack of urgency to re-engage the international community to unlock the much-needed rescue package for the country’s ailing economy.

    This was the headline in another article. The only plausible reason I can think of is that when dealing with certain countries no back handers are offered. We all know about these guys way of operating. They want “MONEY FOR A COKE” for every thing they get involved in. The Chinese are prepared to do that and keep their mouths shut.

    • comment-avatar

      @dr do-little….when you refer to “these people’s way of operating”, which people are you referring to??…….these blacks??…..i hope everyone will be listening in for your reply.

  • comment-avatar
    Mena Bona 7 years ago

    Zimbabwe and it ancient leader are mad. Many studies around Chinese involvement in Africa have been conducted by economists. Trade between the two is skewed 90% to 10% in favour of China. How did we ever allow such madness to prevail? Answer. Politicians in many African countries will sell their own countries for personal survival and wealth. Zimbabwe is the best example of this lunacy.

  • comment-avatar
    Saddened 7 years ago

    @ Mena Bona this has happened because we have a bunch of academics trying to run the country unlike the practical business people and farmers who ran the country before independence. Our esteemed leader is a school teacher who treats us like his students because he thinks he always knows better & as we know few of them are business minded.

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    Straight Shooter 7 years ago

    Gukurahundi rubbish, as usual. Figures are deliberately not stated because there is nothing to state.

    If you doubt me, lets meet in a year’s time and you tell me what has come out in practice from these agreements!!

  • comment-avatar
    Straight Shooter 7 years ago

    The Chinese are not stupid to sink billions of dollars in investments in a country led by a 90-year old. Its not just the country’s political future that is uncertain, its also the very Gukurahundi ruling party’s future that is uncertain. Even the gukurahundi can not with certainily tell his hosts what will happen to him or his party in between 5 to 10 years time – who will lead it?

    The political risks are simply too high!!

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    Charles Chamunorwa 7 years ago

    Zimbabwe is on sale. China is the sole bidder and Mugabe is doing the bidding for China