China, Zim hold business dialogue

“China has been watching Zimbabwe”.

The fact that Mr. Xi brought with him a “strong” business delegation, some say it is a sign that China is serious about helping revive Zimbabwe’s economy. Nigeria’s Central Bank Governor Lamido Sanusi has also commented that China’s relationship with Africa is imperialist, removing natural resources from the region.

Chinese nationals, waving both Zimbabwean and Chinese flags, were also there to welcome Mr Xi.

Other agreements would see China assisting Zimbabwe to build or refurbish various airports around the country as well as the construction of a pharmaceutical factory in Harare.

China maintains trade surpluses with numerous African countries, including South Africa, a situation that analysts say should change as China’s investments spur Africa’s industrial capacity and China opens up its markets to goods produced in Africa.

Mr Xi is expected to address a joint press conference with Mr Mugabe after signing economic deals later on Tuesday.

China and Zimbabwe boast a time-honored brotherly relationship that dates back to the former’s provision of substantial assistance for the latter’s struggle for national liberation and independence.

While China is Africa’s biggest trading partner, with two- way flows exceeding $220 billion a year ago, the pace of investment has slowed. Two-way trade reached 1.24 billion US dollars in 2014, marking a year-on-year increase of 12.7 percent.

He was welcomed by President Robert Mugabe and senior government officials at the Harare International Airport.

Meanwhile, in a tender testimony to bilateral friendship, Xi’s wife, Peng Liyuan, paid a visit in the afternoon to Amai Mugabe Children’s Home, an institution in Harare founded by Zimbabwean First Lady Grace Mugabe to adopt orphans and abandoned children.

Another minister, Obert Mpofu, who is in charge of the country’s macroeconomic planning and investment promotion, said: “The Chinese president will make a difference to our trade relations with China in a manner that is sustainable, in a manner that will attract many investors to Zimbabwe”. Foreign Affairs Minister Simbarashe Mumbengegwi said: “This is an occasion for the two leaders to follow up on commitments they made in August past year”.

Calling China Zimbabwe’s “best friend” on the worldwide stage and describing Xi’s visit as a significant event in the development of bilateral ties, Mugabe told Xinhua in a recent interview that he will confer with Xi on bilateral cooperation in multiple areas.

China is Zimbabwe’s biggest foreign investor, pumping in $600 million in 2013, according to Chinese ambassador to Harare Huang Ping.

However, Robert Hill, an economist at Focus Economics, said yesterday that “China’s strategy in Africa has been largely based on resource extraction and is generally characterised by offering mostly yuan-denominated loans, in exchange for permitting Chinese state-owned enterprises access to resources”.

“China is willing to establish three development systems in Africa that promote the processing and manufacturing industry, food security and public health”, said Liu. Over the years, the forum has become a crucial platform for collective dialogue between China and Africa and an effective mechanism for closer practical cooperation, Xi noted.

Before the two-day summit of African leaders begins in Johannesburg on Friday, Xi will hold talks with South African President Jacob Zuma.