Government, Chinese businesses hold frank talks

Rutendo Mazhindu ZimNow Reporter

The government of Zimbabwe and representatives of Chinese enterprises held a candid engagement in Harare this week to address growing concerns over non-compliance, cultural insensitivity, and deteriorating trust in the investment environment.

Tafadzwa Muguti, Secretary for Presidential Affairs in the Office of the President and Cabinet, used the China-Zimbabwe Business Cooperation Roundtable to deliver a sharp message.

He warned that the Zimbabwean government would no longer tolerate illegal financial and business practices by some Chinese entities operating in the country.

Citing multiple concerns, Muguti said Zimbabwe’s economy is being undermined by Chinese businesses failing to bank revenue locally, warning that such practices drain liquidity from the financial system and destabilize the economy.

All foreign and local currency earnings, he insisted, must be deposited in the banking sector, and repatriations handled through the central bank.

Authorities also raised concerns about Chinese nationals entering Zimbabwe on tourist visas but engaging in business activities. Muguti called for compliance with immigration and investment protocols and announced a new requirement that all Chinese visa or permit applicants must first obtain an acknowledgment letter from the Chinese embassy.

Environmental violations, particularly in the mining sector, were also addressed. Muguti cited reports of ancestral graves being disturbed during mineral extraction and stressed the importance of cultural respect.

At the same time, he reaffirmed Zimbabwe’s beneficiation policy, stating that all mineral exports must now undergo local processing. “Zimbabwe wants to manufacture lithium batteries here,” he said, referencing regional market opportunities agreed upon at the China-Africa Economic Forum.

Chinese firms voice operational frustrations

In response, Steve Ke Zhao, CEO of the China-Zimbabwe Exchange Centre, acknowledged the government’s concerns but highlighted the challenges Chinese investors are facing. He said that despite investing significant capital—often up to US$10 million—many companies are unable to operate due to systemic delays.

“Some get ZIDA [Zimbabwe Investment and Development Agency] certificates but can’t get work permits. Machinery is sitting idle. They can’t be installed. They can’t operate,” Zhao said. “They end up doing something illegal, not because they want to, but because the system delays.”

Zhao said most Chinese investors want to comply with Zimbabwean law but are hindered by bureaucracy, inconsistent application of rules, and a lack of orientation regarding labor and cultural expectations.

In response, his organization has begun hosting workshops in partnership with banks and labor agencies to support investor education.

The roundtable marks a significant step in realigning the relationship between Zimbabwe and its largest foreign investor group.

While no formal sanctions have been announced, the meeting signaled the government’s intent to tighten oversight while acknowledging the need to address procedural inefficiencies.