President Emmerson Mnangagwa was one of over two dozen African leaders who visited China last week for the Forum for Africa-China Cooperation (FOCAC). Each of the leaders was there to impress Chinese President Xi Jinping, competing to table projects for which they need Chinese funding.
Returning from the tour, Mnangagwa said: “Exciting times ahead as we turn these discussions into action.”
While Zimbabwe is increasing FDI from China, inflows into Zimbabwe are just a small share of total Chinese investment into the continent – between 3-5%.
Mnangagwa’s visit included tours of tech companies, energy firms and infrastructure developers. Here, newZWire takes stock of who he met in China, what he was looking for, and how that’s likely to pan out.
Tsingshan: steel for rail
Mnangagwa met Xiang Guangda, the billionaire founder of Tsingshan. This is the world’s biggest stainless steel company, which has just started production at the Dinson Iron and Steel Company at Manhize. Tsingshan needs a rail link to the steel plant. The company is talking to government and NRZ on possible facilities from the China International Group and Afreximbank to fund locomotives and wagons, upgrade the Gweru-Mvuma railway, and build a new 50km rail link to the plant. Tsingshan has also recently completed another less spoken of project; a lithium mine near Gwanda.
ALSO READ | NRZ needs over US$430m for rail link to new Manhize steel plant
Sinomine: More value?
Mnangagwa held a meeting with Sinomine, which bought lithium producer Bikita Minerals in 2022. After buying the mine, previously owned by European investors, Sinomine built two new plants to process lithium concentrates. The company told Mnangagwa that it is considering a lithium smelter to produce battery-grade carbonates or hydroxides.
Xin Gang Lian: Coal, ferrochrome and steel
Xin Gang Lian is currently building a ferrochrome plant near Beitbridge, and Mnangagwa met with the company’s chairman, Zhou Xuddon. The under-construction project includes a thermal power plant, which uses coal from Tuli Coal, a government-owned mine. The company reportedly plans to extend its investment into stainless steel.
Titans: Storage and equipment
Mnangagwa witnessed the signing of an MoU between ZESA and China Titans Energy Technology Group. The company produces electric, and ZESA is interested in kits for Hwange and battery storage, part of ZESA’s ambitious long-term plans to ease the power crisis is. Mnangagwa also toured NARI, a manufacturer of equipment used for solar plants.
ALSO READ | From batteries to an Indian deal: ZESA’s Gata speaks his many ambitious plans to ease crisis
China Rail: Another try
Since controversially ditching a deal with the Diaspora Infrastructure Development Group (DIDG) to fix rail in 2018, Zimbabwe’s strategy on rail has been in bits and pieces – from locomotives ordered last year from India, seeking Chinese money for rail links, to contracts with miners to refurbish NRZ’s wagons. Mnangagwa met China Rail, who are part of the Tazara project linking Tanzania and Zambia.
Huawei and ZTE
Zimbabwe signed an MoU with Huawei, vaguely described as “strengthening digital transformation partnership”. Huawei has been in Zimbabwe since 2002, and extended TelOne’s fibre backbone under a US$99 million loan. Mnangagwa also met Li Zixue, executive director of ZTE, another Chinese tech giant that has long been active in Zimbabwe.
BYD: EVs or mines?
One of the stops that appear to have impressed Mnangagwa the most – he mentioned it three times in an interview with Chinese TV – was BYD. The electric vehicle company is active in Zimbabwe. While he admired the cars, Mnangagwa would have been aware that BYD has a growing interest in finding new lithium mines in Africa, as it seeks to secure the battery metal. The company is a shareholder in Chengxin, which opened a new lithium mine in Zimbabwe, Sabi, last year.
DOWNLOAD | SPECIAL REPORT – Who’s who in Zimbabwe’s lithium sector – 2023
Chiana Jiangsu: More air?
Mnangagwa met Song Qinbo, head of China Jiangsu International Group, a large construction firm active across Africa. The company built the RGM International and the Victoria Falls airport teminals. Could Zimbabwe be looking for more such funding? Foreign Affairs Minister Frederick Shava says Zimbabwe has ambitions to build a new airport in Mount Hampden to upgrade the small Charles Prince strip. Mnangagwa also toured SANY, a large manufacturer of construction equipment.
TBEA, again
Mnangagwa also oversaw an MoU signing between ZESA and TBEA, which makes transmission infrastructure such as power lines and transformers. However, this was not Mnangagwa’s first time meeting with TBEA. He also met them in 2018, seeking the same transmission investment. Zimbabwe loses up to 20% of the power it generates due to an aged transmission network.
