News / National
Chinese deals a double-edged sword
20 Feb 2015 at 09:03hrs | Views
Recent revelations that Chinese companies are fleecing Zimbabwean parastatals by among other malpractices, charging exorbitant fees in the implementation of agreed projects only serves to highlight the sustained contradictions and ambiguities of Zimbabwe's Look East policy aimed at bringing in much-needed foreign direct investment.
China has invested billions into Africa but that has come with serious problems.
While government has for close to a decade been claiming success in attracting foreign direct investment from China in the face of Western-sanctions imposed in 2002 over poor governance issues, there seems to be very little, if any, benefits the country is deriving from the so-called "mega deals".
According to state media reports, Zimbabwe was overcharged for the construction of the Kariba South Power station when compared to what China demanded from Zambia for the construction of an even bigger power station.
Zambia reportedly paid US$278 million for the expansion of Kariba North Power Station that added 360 megawatts to that country's state-owned power utility, while Zimbabwe will fork out US$533 million for Sino-Hydro to expand Kariba South Power Station expected to add 300MW to the national grid.
Zimbabwe is going to pay US$255 million more than Zambia, despite Lusaka is benefitting from 60MW more.
The deal sparked controversy when former Finance minister Tendai Biti smelt a rat and raised objections with the price adjustments from US$355 million to US$533 million last year.
China has invested billions into Africa but that has come with serious problems.
While government has for close to a decade been claiming success in attracting foreign direct investment from China in the face of Western-sanctions imposed in 2002 over poor governance issues, there seems to be very little, if any, benefits the country is deriving from the so-called "mega deals".
According to state media reports, Zimbabwe was overcharged for the construction of the Kariba South Power station when compared to what China demanded from Zambia for the construction of an even bigger power station.
Zambia reportedly paid US$278 million for the expansion of Kariba North Power Station that added 360 megawatts to that country's state-owned power utility, while Zimbabwe will fork out US$533 million for Sino-Hydro to expand Kariba South Power Station expected to add 300MW to the national grid.
Zimbabwe is going to pay US$255 million more than Zambia, despite Lusaka is benefitting from 60MW more.
The deal sparked controversy when former Finance minister Tendai Biti smelt a rat and raised objections with the price adjustments from US$355 million to US$533 million last year.
Source - Zim Ind
