Categories: Stories

Mugabe lifts lid on arms-for-minerals deal with China

“Some of the funds are not gratuitous, they are not grants. They are debts, loans that are being extended to us and we should be able to repay or start repaying them. When we fail to do so then our friends say ah, but what is happening?”

Zimbabwe’s commercial ties with China came under strain in 2016 when the government seized diamond mining concessions from seven firms operating there, including the Chinese-run Anjin and Jinan mines.

Although China has gained a foothold in Zimbabwe’s retail sector, the country’s significant investments have been in infrastructure.

China’s Sino Hydro is currently working on expanding Zimbabwe’s 750 megawatt Kariba South power plant, putting up $320 million to add 300MW in a project valued at $533 million. Sino Hydro has also been awarded a contract to add 600MW to the 920MW Hwange thermal power plant for an estimated $1.3 billion.

China has also built a $100 million defence college on the outskirts of Harare and recently completed the $150 million upgrade of the Victoria Falls International Airport.-The Source

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This post was last modified on February 22, 2017 9:27 am

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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