Opinion / Columnist
Why does Zimbabwe attract rogue Chinese investors?
27 Sep 2024 at 22:57hrs | Views
Last night, I had the honor of being one of those invited for the launch of a report, in Harare, by the Center for Natural Resource Governance (CNRG) titled, 'Chinese Investments in Zimbabwe'.
The report by the Farai Maguwu led organization gave a most revealing and compelling account of the massive looting of our national resources, as well as the exploitation of workers and abuse of local communities at the hands of Chinese companies, mostly in the mining industry.
I was highly impressed by the methodological and meticulous manner in which Maguwu and his able team researched, investigated, and presented their findings.
To say that I was horrified by the dastardly activities by these Chinese companies would be the understatement of the century.
There can be nothing more disturbing and appalling than hearing of the near atrocities brazenly committed by these supposed 'investors', who have proven themselves no better than common criminals, slave drivers, and plunderers.
These unspeakable crimes by the Chinese include, but are certainly not limited to, forcefully displacing local communities from their ancestral lands without any meaningful compensation.
These atrocious acts have been witnessed in such areas as Bikita, Marange, Mutoko, Binga, and Hwange, amongst others - whose communities have been left in near restitution.
To add insult to injury, there has seldom been any development to write home about in those areas ever since mining activities commenced.
As a matter of fact, most of these communities - allegations buttressed through first-hand testimonies by those from these areas who attended the CNRG report launch - have been left worse-off than they had been before the discovery of the minerals.
To directly receive articles from Tendai Ruben Mbofana, please join his WhatsApp Group on: https://chat.whatsapp.com/CBQVPGODBPQG969OBVLyeT
After being evicted from their lands - a flawed and fraudulent process supported by local traditional leaders and ruling ZANU PF party politicians bribed by the Chinese - most families were abandoned with no land to farm, no livestock, and virtually zero livelihoods.
Water bodies have been contaminated with deadly chemicals dumped into nearby rivers that had once served and sustained these communities by providing water for drinking, cooking, household chores, and agriculture.
Not only that, but their valued heritage sites, sacred mountains, and even ancestral graves have been wantonly destroyed and desecrated by these companies, all in search of minerals.
During the colonial era, at least, companies that came to exploit our natural resources had the decency to provide housing for their workers, build hospitals and schools, as well as many amenities for the population.
In other words, quite a number of towns in Zimbabwe - such as my own hometown of Redcliff, Shurugwi, Zvishavane, you name it - were the result of these colonial investments.
One can be tempted to ask: Have the Chinese not invested quite a substantial amount in Zimbabwe?
In fact, a Zimbabwe Investment and Development Agency (ZIDA) 2023 annual report showed that 369 licenses were issued to Chinese investors with a projected investment value of US$3.93 billion.
Some of the notable names that have set up in Zimbabwe are: Bikita Minerals, which is now owned by Sinomine Resource Group, and operates in Bikita.
In Mutoko, there is Heijin, Shanghai Haoyuan, Jinding Mining, and Bozimo, who mine black granite.
Operating in Dinde are Beifa Investments and Shanghai Construction Group (SCG), who are into coal mining.
Hwange has Beifa Investments and Shanghai Construction Group (SCG), who are also into coal mining.
In diamond-rich Marange, we have Anjin Investments.
Nonetheless, there is a catch.
Very little of those billions is actually in investment that uplifts the livelihoods of the people of Zimbabwe.
This is mostly money in the form of the equipment brought by these companies in order to carry out their mining activities.
That is why nearly three decades after some of these Chinese companies began mining diamonds in Marange, for instance, no single town or even growth point has emerged.
All these miners do is pillage and strip bare our country, yet not giving anything back into these communities.
A look at the people of Marange or Bikita, for example, can never give the picture that these were residents of areas were some of the world's diamonds and lithium came from.
They are possibly some of the poorest people in Zimbabwe.
And, if you are poor in an already poverty-stricken country as Zimbabwe, then you are likely also the poorest in the whole world!
In addition, employees at these mining companies are paid poorly, if paid at all, and operate under the most unsafe, brutal, and heinous conditions ever imaginable.
Virtually none of those employed by these Chinese companies earn the basic minimum wage.
Most are made to work under dubious temporary employment contacts, which leave them with no job security, no pension, medical aid, or other monetary or non-monetary benefits.
They can be injured on the job or fired with zero compensation or terminal benefits.
Women who constitute about 1% of the workforce at these Chinese companies are made to undertake some of the most degrading and dehumanizing duties.
There are reports of them being sexually abused or made to wash undergarments by their Chinese bosses - who employ them largely as maids.
Someone during the CNRG report launch asked a question that captivated those in attendance.
Why does Zimbabwe attract rogue investors?
Let us remember that China invests in numerous countries across the world.
Yet, for some strange reason, acts of flagrantly flouting local laws, exploiting employees, abusing local communities, and desecrating heritage and sacred sites seem to occur only in Zimbabwe.
Let us look at some examples.
China's cumulative investment in South Africa stands at US$25 billion with an estimated provision of more than 400,000 direct and indirect jobs.
These Chinese investors have been steadily building their direct and indirect investments in South Africa during the last decade.
South Africa currently ranks second in China's mining investment into Africa.
Among the more significant investments was the $227 million acquisition by the Jinchuan Group and the China-Africa Development Fund of a 45% stake in Wesizwe Platinum, a junior mining company.
At the time of the acquisition, the Chinese investors also helped raise a $650 million project finance facility to develop Wesizwe's Frischgewagde mine.
In 2011, the China Investment Corporation (CIC) paid $243 million (R2 billion at the time) for a 25% shareholding in Shanduka Group.
Shanduka Gold is invested in Pan African Resources, which in turn manages a gold operation near Taung Gold's Evander project.
Other Chinese companies presently involved in South African mining include Zijin Mining, Minmetals, Jiquan Iron and Steel (JISCO), East Asia Metals, and Sino Steel.
Zijin is developing the Blue Ridge Mine and Sheba Mine in the north of South Africa.
Sino Steel is involved in a joint venture with a parastatal (Lindev) to operate a chromium mine in the Limpopo province and has invested in the development of another mine with manganese operator, Cemencor.
Nonetheless, in all these investments by the Chinese, there have hardly been any instances of the forced eviction of local communities from their ancestral lands, exploitation of workers, or violation of sacred sites.
These investors appear to respect the laws and people of South Africa.
So, what is different in Zimbabwe's case?
Why do we find such Chinese companies that freely ride roughshod over the people of Zimbabwe by treating them as second-class citizens in their own country?
Why do they not do these despicable and dastardly things in South Africa, for instance?
This may be because of the government in power in Zimbabwe.
We have a gangster regime that does not care about its own citizens such that they have given the Chinese carte blanche to do practically whatever they want in their efforts to loot as much as they can and reap as much wealth as they desire, without being held accountable by anyone.
For the ruling elite in Zimbabwe, profits are more important than the citizenry.
Besides, due to the unbelievably corrupt nature of those in power, they would rather look aside as these Chinese destroy our nation, as long as they (the ruling elite) are given kickbacks.
That is all they care about.
This the main reason the Chinese now treat Zimbabwe as their colony.
The ZANU PF regime has effectively handed our beloved country to China.
We are no longer a sovereign state.
However, due to the hard work, dedication, and selflessness of people like Maguwu and his CNRG team, these criminal, cruel, and corrupt ways will continue to be exposed and resisted.
The people of Zimbabwe deserve to know the truth.
© Tendai Ruben Mbofana is a social justice advocate and writer. Please feel free to WhatsApp or Call: +263715667700 | +263782283975, or email: mbofana.tendairuben73@gmail.com, or visit website: https://mbofanatendairuben.news.blog/
The report by the Farai Maguwu led organization gave a most revealing and compelling account of the massive looting of our national resources, as well as the exploitation of workers and abuse of local communities at the hands of Chinese companies, mostly in the mining industry.
I was highly impressed by the methodological and meticulous manner in which Maguwu and his able team researched, investigated, and presented their findings.
To say that I was horrified by the dastardly activities by these Chinese companies would be the understatement of the century.
There can be nothing more disturbing and appalling than hearing of the near atrocities brazenly committed by these supposed 'investors', who have proven themselves no better than common criminals, slave drivers, and plunderers.
These unspeakable crimes by the Chinese include, but are certainly not limited to, forcefully displacing local communities from their ancestral lands without any meaningful compensation.
These atrocious acts have been witnessed in such areas as Bikita, Marange, Mutoko, Binga, and Hwange, amongst others - whose communities have been left in near restitution.
To add insult to injury, there has seldom been any development to write home about in those areas ever since mining activities commenced.
As a matter of fact, most of these communities - allegations buttressed through first-hand testimonies by those from these areas who attended the CNRG report launch - have been left worse-off than they had been before the discovery of the minerals.
To directly receive articles from Tendai Ruben Mbofana, please join his WhatsApp Group on: https://chat.whatsapp.com/CBQVPGODBPQG969OBVLyeT
After being evicted from their lands - a flawed and fraudulent process supported by local traditional leaders and ruling ZANU PF party politicians bribed by the Chinese - most families were abandoned with no land to farm, no livestock, and virtually zero livelihoods.
Water bodies have been contaminated with deadly chemicals dumped into nearby rivers that had once served and sustained these communities by providing water for drinking, cooking, household chores, and agriculture.
Not only that, but their valued heritage sites, sacred mountains, and even ancestral graves have been wantonly destroyed and desecrated by these companies, all in search of minerals.
During the colonial era, at least, companies that came to exploit our natural resources had the decency to provide housing for their workers, build hospitals and schools, as well as many amenities for the population.
In other words, quite a number of towns in Zimbabwe - such as my own hometown of Redcliff, Shurugwi, Zvishavane, you name it - were the result of these colonial investments.
One can be tempted to ask: Have the Chinese not invested quite a substantial amount in Zimbabwe?
In fact, a Zimbabwe Investment and Development Agency (ZIDA) 2023 annual report showed that 369 licenses were issued to Chinese investors with a projected investment value of US$3.93 billion.
Some of the notable names that have set up in Zimbabwe are: Bikita Minerals, which is now owned by Sinomine Resource Group, and operates in Bikita.
In Mutoko, there is Heijin, Shanghai Haoyuan, Jinding Mining, and Bozimo, who mine black granite.
Operating in Dinde are Beifa Investments and Shanghai Construction Group (SCG), who are into coal mining.
Hwange has Beifa Investments and Shanghai Construction Group (SCG), who are also into coal mining.
In diamond-rich Marange, we have Anjin Investments.
Nonetheless, there is a catch.
Very little of those billions is actually in investment that uplifts the livelihoods of the people of Zimbabwe.
This is mostly money in the form of the equipment brought by these companies in order to carry out their mining activities.
That is why nearly three decades after some of these Chinese companies began mining diamonds in Marange, for instance, no single town or even growth point has emerged.
All these miners do is pillage and strip bare our country, yet not giving anything back into these communities.
A look at the people of Marange or Bikita, for example, can never give the picture that these were residents of areas were some of the world's diamonds and lithium came from.
They are possibly some of the poorest people in Zimbabwe.
And, if you are poor in an already poverty-stricken country as Zimbabwe, then you are likely also the poorest in the whole world!
In addition, employees at these mining companies are paid poorly, if paid at all, and operate under the most unsafe, brutal, and heinous conditions ever imaginable.
Virtually none of those employed by these Chinese companies earn the basic minimum wage.
Most are made to work under dubious temporary employment contacts, which leave them with no job security, no pension, medical aid, or other monetary or non-monetary benefits.
Women who constitute about 1% of the workforce at these Chinese companies are made to undertake some of the most degrading and dehumanizing duties.
There are reports of them being sexually abused or made to wash undergarments by their Chinese bosses - who employ them largely as maids.
Someone during the CNRG report launch asked a question that captivated those in attendance.
Why does Zimbabwe attract rogue investors?
Let us remember that China invests in numerous countries across the world.
Yet, for some strange reason, acts of flagrantly flouting local laws, exploiting employees, abusing local communities, and desecrating heritage and sacred sites seem to occur only in Zimbabwe.
Let us look at some examples.
China's cumulative investment in South Africa stands at US$25 billion with an estimated provision of more than 400,000 direct and indirect jobs.
These Chinese investors have been steadily building their direct and indirect investments in South Africa during the last decade.
South Africa currently ranks second in China's mining investment into Africa.
Among the more significant investments was the $227 million acquisition by the Jinchuan Group and the China-Africa Development Fund of a 45% stake in Wesizwe Platinum, a junior mining company.
At the time of the acquisition, the Chinese investors also helped raise a $650 million project finance facility to develop Wesizwe's Frischgewagde mine.
In 2011, the China Investment Corporation (CIC) paid $243 million (R2 billion at the time) for a 25% shareholding in Shanduka Group.
Shanduka Gold is invested in Pan African Resources, which in turn manages a gold operation near Taung Gold's Evander project.
Other Chinese companies presently involved in South African mining include Zijin Mining, Minmetals, Jiquan Iron and Steel (JISCO), East Asia Metals, and Sino Steel.
Zijin is developing the Blue Ridge Mine and Sheba Mine in the north of South Africa.
Sino Steel is involved in a joint venture with a parastatal (Lindev) to operate a chromium mine in the Limpopo province and has invested in the development of another mine with manganese operator, Cemencor.
Nonetheless, in all these investments by the Chinese, there have hardly been any instances of the forced eviction of local communities from their ancestral lands, exploitation of workers, or violation of sacred sites.
These investors appear to respect the laws and people of South Africa.
So, what is different in Zimbabwe's case?
Why do we find such Chinese companies that freely ride roughshod over the people of Zimbabwe by treating them as second-class citizens in their own country?
Why do they not do these despicable and dastardly things in South Africa, for instance?
This may be because of the government in power in Zimbabwe.
We have a gangster regime that does not care about its own citizens such that they have given the Chinese carte blanche to do practically whatever they want in their efforts to loot as much as they can and reap as much wealth as they desire, without being held accountable by anyone.
For the ruling elite in Zimbabwe, profits are more important than the citizenry.
Besides, due to the unbelievably corrupt nature of those in power, they would rather look aside as these Chinese destroy our nation, as long as they (the ruling elite) are given kickbacks.
That is all they care about.
This the main reason the Chinese now treat Zimbabwe as their colony.
The ZANU PF regime has effectively handed our beloved country to China.
We are no longer a sovereign state.
However, due to the hard work, dedication, and selflessness of people like Maguwu and his CNRG team, these criminal, cruel, and corrupt ways will continue to be exposed and resisted.
The people of Zimbabwe deserve to know the truth.
© Tendai Ruben Mbofana is a social justice advocate and writer. Please feel free to WhatsApp or Call: +263715667700 | +263782283975, or email: mbofana.tendairuben73@gmail.com, or visit website: https://mbofanatendairuben.news.blog/
Source - Tendai Ruben Mbofana
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