Chinese CEO accused of political interference in Zimbabwe

A storm is brewing at the Dinson Iron and Steel Company (DISCO), one of Zimbabwe's flagship industrial investments, amid allegations of political interference, labour discrimination, and community displacement involving its Chief Executive Officer, Benson Xu.

The multi-billion-dollar steel project, located at Manhize and widely viewed as central to Zimbabwe's industrialisation agenda, is now under scrutiny over claims that its leadership has become entangled in domestic political issues and governance disputes.

According to sources familiar with the developments, Xu is alleged to have taken a stance against Constitutional Amendment Bill No. 3 (CAB 3), a government-backed proposal. He is also accused of hosting outspoken government critic Rutendo Matinyarare at the plant, in what insiders describe as part of efforts to mobilise opposition to the amendment.

While these allegations have not been independently verified, they have triggered debate over the extent to which foreign investors should engage in local political processes.

However, DISCO's Chief Executive Officer, Mr Benson Xu, through his public relations manager Joseph Shoko, said he was not aware of the allegations. "I am not aware of the allegations; I will need time to consult with colleagues," Shoko said.

Further controversy has emerged over claims that meetings involving Matinyarare and a senior company official were held with local communities without the involvement of government authorities, raising questions about governance and coordination in community engagement processes.

At the same time, residents from the Mushenjere area have raised concerns about their living conditions since the establishment of the steel plant. They allege that access to farmland has been restricted for several agricultural seasons following the construction of a perimeter wall around the mining and industrial site.

More than 80 families are reportedly affected, with residents citing food insecurity, dust pollution, and health challenges linked to the industrial operations. "They say we were resettled, but this is not the life we were promised," said one villager.

The company has previously stated that relocation processes were carried out in accordance with regulatory requirements, although affected communities continue to raise grievances.

Inside the plant, additional allegations have emerged regarding labour practices. Workers claim there is unequal treatment between local and expatriate employees, with foreign staff reportedly receiving better accommodation and working conditions, while local employees face comparatively poorer facilities and limited career progression.

There are also claims that procurement opportunities are disproportionately awarded to foreign-linked companies, limiting participation by local businesses. Allegations of nepotism in certain departments have also surfaced, alongside reports that employees who raise concerns risk disciplinary action, including dismissal or transfer.

Xu's role as President of the Foreign Business Community has further intensified scrutiny, with critics arguing that the company's operations reflect broader concerns about economic inclusion and local participation in large-scale foreign-funded projects.

Despite operating within a Special Economic Zone, stakeholders say local firms continue to face barriers to entry, raising questions about the balance between attracting foreign investment and ensuring domestic economic participation.

As tensions persist, the developments at Manhize are increasingly seen as a key test of Zimbabwe's ability to manage large-scale industrialisation projects while safeguarding community rights, labour standards, and transparency in investment governance.