Zimbabwe: Vaunted Sino- Zim Intimacy All But a Fallacy

Source from:  Zimbabwe Independent (Harare) January 26, 2007 01/30/2007

A PLANNED African visit by Chinese President Hu Jintao provides no clue as to Zimbabwe's vaunted close relations with the Asian country. Hu, making his second visit to the continent, has again given Zimbabwe a wide berth, instead visiting four of the country's neighbours in a policy initiative viewed by observers as aimed at putting African economies on a solid footing. No country required that better than Zimbabwe, currently grappling with an economic crisis now in its seventh year. Besides giving a modicum of hope to Zimbabwe, isolated by the international community over a poor human rights record, a visit by Hu would have generated confidence that the Chinese would finally provide a hefty financial bail-out. Hu, whose Africa visit will start on January 30, will visit Mozambique, whose economy is experiencing one of the highest growth rates on the continent; Zambia, whose once-suffering economy is on the mend; Namibia, whose economy is one of the most vibrant in the region; and South Africa, the continent's economic powerhouse. Trade between China and Africa has swelled in recent years, reaching US$42 billion in 2005. China has become a dominant supplier of cheap manufactured goods for the continent, and the Zimbabwean government has entered into several deals with Chinese companies, most of them state-owned, for barter arrangements in which Zimbabwe will receive assistance in setting up power plants and telecommunications infrastructure in return for minerals resources to sustain China's expanding economy. Hu visited Morocco, Nigeria and Kenya in April last year, signing a number of trade agreements, while Chinese Foreign minister Li Zhaoxing visited several African countries this month, again also giving Zimbabwe a wide berth. During his current mission, Hu will also visit Cameroon, Sudan, the Seychelles and Liberia between January 30 and February 10, according to information released this week by Chinese Foreign ministry spokesman Liu Jianchao. Liu told a news briefing the visits were a follow-up to last year's China-Africa summit in Beijing and aimed to "consolidate traditional friendship" between China and the African countries. President Robert Mugabe was one of the delegates to the China-Africa summit held towards the end of last year. Immediately after the visit, government suggested that China was to provide immense support to Zimbabwe to facilitate the country's economic turnaround programme, with a consignment of fertiliser, as well as other goods reported to have been already in shipment immediately after the summit, demonstrating to pessimists China's unflinching support for President Mugabe's regime. The European Union and the United States have imposed targeted sanctions, which include travel bans, on President Robert Mugabe and members of his regime. The sanctions have impeded the country from accessing offshore finance from international financial institutions as well as from the international donor community. This has compounded the country's economic woes, with acute foreign currency shortages resulting in severe fuel shortages which have disrupted economic activities. Mugabe's government has pushed for aggressive relations with Asian countries, particularly China, under a Look East policy adopted mainly to spite Western countries for the targeted sanctions on his regime. Shunned by the West and blamed by opponents for sinking the country into its worst crisis since Independence in 1980, Mugabe has been forced to scramble for aid from the East. However, many observers say China, rather than Zimbabwe, has been the major beneficiary of Zimbabwe's Look East policy, and several bids by Mugabe's government to source financial assistance from the Chinese have failed. China has been trying to gain a foothold in Zimbabwe's key mining sector to explore the country's vast mineral reserves. In July 2005, Mugabe visited China in a bid to negotiate an economic package to rescue the country from its crisis. Nothing came out of that visit. However, Zimbabwe's ambassador to China, Chris Mutsvangwa, said the country was on the verge of securing a US$2 billion credit line from China. The claim was however denied by the Chinese government, who also dismissed state media reports that a Chinese firm was preparing to inject huge amounts of money into Ziscosteel to turn around the ailing steelmaker's fortunes. Reserve Bank of Zimbabwe governor, Gideon Gono, however announced in September a US$200 million facility from China as part of nearly half a billion dollars worth of mainly foreign loans which he said had been offered after Zimbabwe had met conditions for the Chinese loan. This left market watchers speculating that Zimbabwe could have mortgaged mineral resources for the loan. Zimbabwe has made several offers to the Chinese firms in a bid to persuade the Chinese government into granting the country a financial bail-out package. A Chinese company, Bunday Technical Mining, was recently granted land by the Chirumanzu Rural District Council to set up a chrome processing plant in Lalapanzi. Although the Chinese have become major buyers of tobacco on the local market, plans by several Chinese firms to finance tobacco farming appear to have fallen through. Although a delegation of senior officials from Air Zimbabwe, the Civil Aviation Authority and the National Railways went to China in 2004 "to finalise discussions with a Chinese firm" for investment in the companies, the Chinese firm, China National Aero Technical Import and Export Technology (Catac), has not followed through on the deals. Catac has signed several memorandums with the Zimbabwe Electricity Supply Authority to finance several power projects but these have failed to get through because of failure by the Zimbabwe government to provide required guarantees. Catac had also been courted by Tel*One to provide software for Tel*One to mitigate theft of copper cables. The Chinese company has been given a tender to supply aviation equipment for the Victoria Falls Airport and Joshua Nkomo Airport in Bulawayo, as well as to assist with the construction of a cargo harbour and runways. The company was also expected to supply railway infrastructure, especially signal network and dualisation of the Harare-Masvingo road up to the Beitbridge border post. But Chinese firms have refused to release funds initially pledged for the projects and until they do so there will be no progress. The failure of these schemes could explain why China's leader is being circumspect about visiting Zimbabwe in his journey to Africa. Relations don't appear to be as intimate as we have been led to believe. Enditem