Murerwa announces Chinese take-over

d take over control while in some cases they would provide loans.
“Chinese deals are purely investment deals in which case the Chinese would assume control of the companies and also provide lines of credit to the parastatals. We expect tourism growth to provide foreign exchange to finance these loans,” said Murerwa.
Key state firms set to be taken over or to receive financial rescue packages from China include, National Railways of Zimbabwe, Zimbabwe Electricity Supply Authority, Air Zimbabwe, Zimbabwe Broadcasting Holdings and the country’s only fixed telephone company, Tel-One.
The Chinese have already provided three aircraft to Air Zimbabwe. Murerwa said they were also working on rehabilitating the dilapidated national rail system.
Harare is vigorously pursuing a “look East” policy after falling out with traditional trading and development partners in the West over its appalling human rights record. Local industry, however, says Zimbabwe is reaping few positive results from its association with China and other Asian states.
For example, a survey commissioned by the Confederation of Zimbabwe Industries two months ago established that at least 40 companies were forced to shut down last year after losing their market-share to cheaper goods from mostly China.
And local hotel and leisure mogul, Shingi Munyeza, told reporters that the tourism sector had benefited little from Zimbabwe’s association with China.
He said: “The Chinese are bad spenders, moving in large volumes. They insist on their dishes and we have to configure all our systems to suit their demands. This puts pressure on the local operators. There is nothing of significance in terms of business arising from the influx of the Chinese.” – Own correspondent