KEY POINTS
- A Chinese mining firm has committed $3.6 billion to a major multi-faceted investment in Beitbridge, Zimbabwe.
- The project includes mining, industrial, and infrastructure developments, which are expected to create thousands of jobs.
- This investment is part of Zimbabwe’s efforts to boost foreign direct investment (FDI) and industrialize its economy.
A Chinese mining firm has unveiled a massive $3.6 billion plan to develop a complex project in Beitbridge, Zimbabwe, one of the biggest FDI projects in the country in recent years.
The massive plan is expected to comprise of mining, construction of infrastructure and industrial development to make the area a productive corridor.
The investment forms part of Zimbabwe’s strategy to lure foreign direct investment and to try and turn around its ailing economy.
The project that cuts across several sectors is expected to create thousands of employment opportunities and spur economic development in Beitbridge, a key border town between Zimbabwe and South Africa.
Job creation and economic growth: report.
The multi-billion dollar venture is expected to revolutionize employment opportunities in Beitbridge and the surrounding areas through the development of direct and indirect employment.
In the project, a Chinese mining company will have to commit itself to investing in mining resources for the extraction of the valuable mineral resources as well as for the establishment of industrial plants for processing and production.
Beitbridge has always been an economic center because of its location at the border of Zimbabwe and South Africa.
The new investment will leverage this by increasing the infrastructure such as roads and utilities to support the venture in the long run. The result of this is expected to increase trading opportunity between Zimbabwe and regional countries.
New Zimbabwe reported that the project will immensely boost the country’s GDP as per Vision 2030 of the government to transform Zimbabwe into a middle income economy.
Foreign investment is also expected to enhance the country’s appeal to foreign investors who have been reluctant to invest in Zimbabwe because of fluctuating economic cycles.
Zimbabwe’s drive for industrialization and FDI
Foreign direct investment (FDI) has become a preferred policy instrument for Zimbabwe as a way of enhancing industrialization and economic growth.
The government has put in place several policies to enhance the country’s competitiveness to foreign investors especially in areas of mining, agriculture and manufacturing.
This latest investment is a strategic component in Zimbabwe’s plan to harness its abundant natural resources for industrial development.
As if those are not enough Zimbabwe holds reserves of gold, diamonds, platinum as well as lithium which will make it a force to reckon in the mining frontier in the coming years.
This shows that the Chinese firm has confidence in the ability of Zimbabwe to grow economically despite the current problems of mining and industrial growth.
Enhancing the bilateral relations between Zimbabwe and China
The Beitbridge project has a strong implication of enhancing the economic cooperation with Zimbabwe and China; the latter has been the major source of funding of the Zimbabwean infrastructure development. In the last ten years alone, China has sunk about $3 billion in Zimbabwe mostly in mining, construction and farming.
This latest $3.6 billion investment further cements China’s position as Zimbabwe’s largest trading partner and its appetite for Zimbabwe’s natural resource sectors remains insatiable.
ZIMASSET advocate that the country should diversify trade relations with China and other countries in order to foster long term recovery of Zimbabwe’s economy. Like the Beitbridge project, Chinese investments are believed to help Zimbabwe to modernize its infrastructure and industrial potential.
Hope for a prosperous future
The $3.6 billion investment in Beitbridge is a silver lining for Zimbabwe’s economy. The project is expected to boost the local economy, generate employment and enhance industrial development in one of Zimbabwe’s most strategic provinces.
If well managed and further supported, this venture has the potential of being adopted as a future model of investment by foreigners in the country.
