Vaccine diplomacy … Vice President Constantino Chiwenga receiving a consignment of donated Chinese vaccines in Harare on Sunday, September 26, 2021
Zimbabwe has warned Chinese investors against disregarding local labour and environmental laws as well as driving illicit financial activities, an unusual stance after months of public complaints. Harare’s rebuke now upends Zimbabwe’s record as one of the African countries that have been most receptive to investment from Beijing, often looking away when issues are raised. China had, over the years, grown to be the dominant source market for investors into Zimbabwe following the Southern African country’s isolation by the West over two decades ago. Tafadzwa Muguti, a senior official in President Emmerson Mnangagwa’s office, this week took by surprise delegates at a conference to discuss Chinese investments in Harare, when he warned investors from the Asian country to desist from “illicit financial activities, environmental harm and disregard for local laws.” “The majority of you (Chinese) businesspeople are not banking (money),” Mr Muguti told the China-Zimbabwe Business Forum on Wednesday. “You do not have bank accounts.
…Critics have long raised concerns about Chinese investors’ alleged disregard for local labour and environmental laws, but Harare has frequently defended them. The government has in the past accused those who are critical of the conduct of Chinese investors of being agents of the West, trying to disrupt the flow of investment from a reliable ally. Zimbabwe has battled a currency crisis for nearly two decades that saw the country abandon the local unit in 2009 in favour of a basket of currencies dominated by the US dollar. The country has since then made six attempts to revive the Zimbabwe dollar with the latest attempt being the mineral-based Zimbabwe Gold currency introduced a year ago. Most businesspeople, especially foreigners, are hesitant to use local banks because of uncertainties surrounding the country’s monetary policies and the challenges associated with repatriating their profits from Zimbabwe.
…Chinese companies have been caught mining in Zimbabwe’s game reserves after obtaining licences in unclear circumstances while others are involved in riverbed mining, leading to massive destruction of the water courses…There are also several cases of Chinese mining companies that are locked in conflicts with local communities after being accused of invading ancestral lands and desecrating graves. “We are noticing that some Chinese companies are digging up our ancestors’ graves to extract granite or gold,” Mr Muguti said. “Some of them are picking the bones and putting them aside to start digging. That’s the greatest disrespect to any person, even in your culture. So, if we are not patient with one another, then we can’t work together.” Steve Zhao, CEO of China-Zimbabwe Exchange Centre, which represents the interests of Chinese nationals, said most of the problems were caused by bureaucratic bottlenecks. “Chinese companies are facing a lot of trouble,” Mr Zhao said.