China surges as Zim’s top investor, raising concer...

China surges as Zim’s top investor, raising concerns and opportunities

Zim Now Writer

A new report by the Public Policy and Research Institute of Zimbabwe reveals China’s dominance as the country’s largest source of foreign direct investment, surpassing Western influence. However, this shift comes with mixed blessings.

China’s investments have become a significant driving force in Zimbabwe’s economy. While some view this as a positive development, others express concerns about China’s motives and potential negative impacts.

Some Zimbabweans fear China’s growing economic influence could lead to a new form of neo-colonialism, with Chinese investors exploiting the country’s resources and labour without due regard for local regulations or human rights.

The report highlights the close alignment between China’s authoritarian political system and Zimbabwe’s ruling Zanu PF party. This connection raises concerns that Chinese companies operating in Zimbabwe may enjoy undue protection from authorities, potentially enabling labour rights violations and environmental damage within local communities.

Zimbabwe and China’s relationship dates back to the liberation struggle, with China supporting Zanu PF during the fight for independence. This historical connection has laid the foundation for the current economic ties.

China has played a crucial role in financing major infrastructure projects in Zimbabwe, including power stations, airports, and the New Parliament Building. These developments provide a much-needed boost to the country’s infrastructure, although concerns about potential debt burdens remain.

While China recently cancelled some of Zimbabwe’s debts, its growing dominance as a creditor raises concerns about the country’s ability to repay future obligations. Diversifying partnerships beyond China is crucial to mitigate this risk.

While acknowledging the benefits of Chinese investments in infrastructure development, the report emphasises the need for careful management to address potential human rights abuses, environmental degradation, and overdependence on a single foreign power.

PPRIZ is conducting similar studies in other African countries like Zambia and South Africa, highlighting the broader context of China’s growing influence on the continent.