Unconditional Aid: Analysing the Impact of China’s Development in Zimbabwe

By Evans Dakwa

 Recently, there has been widespread outcry from Zimbabweans concerning the activities of some Chinese investors in the country especially those domiciled in the mining sector. The major bone of contention has mainly been around the exploitation of local resources with no benefits to the local communities, blatant disregard for environmental laws the allegation of exploiting our resources for a pittance with no beneficiation whatsoever for the benefit of our populace.

 Whilst the Chinese are no saints just like the rest of the big super powers of the world, the Asian giant cannot be blamed for Zimbabwe’s supposed lack of business acumen and negotiating power in creating the investment climate to the best of its interests and that of its citizens.

 What the mumbling and rumbling Zimbabweans are failing to understand is the international political economy is a dog eat dog affair, a sphere where the fittest will reap the rewards. Like any of the big powers in the world, Chinese investments abroad, Zimbabwe included is preceded by personal interest.

 The purpose of any international investment is not primarily to develop the host nation but to further their economic and or political interest with the latter being so intertwined with the economy. So when the Chinese come to invest in Zimbabwe, give development aid to our country, there is always a catch to be it political or economic. Investment deals and development aid are strategically structured to further the immediate or long term interest of the investing nation.

 For one to comprehend Chinese development and investments in the country, there is need to understand the context within which it’s taking place. China’s investment and developments in Zimbabwe have increased at a time when the country has had tumultuous period in the corridors of international relations with the well documented spat with the Western bloc for long Harare’s preferred choice of investors. 

With the tiff came drying of investments from the Western bloc and in worst case scenarios disinvestment leaving Harare struggling and clutching at its strolls. The Chinese saw an opportunity to plug the gap left by the Western powers and cement its foot hold in our resource rich nation. The Asian nation automatically became our Zimbabwe’s go to nation when in need. 

Zimbabwe’s investment deals are negotiated from a point of disadvantage emanating from poor credit ratings which ranks it as a high credit risk nation reducing its ability to lure a wide range of investors. The country’s prevailing position in the corridors of international relations naturally makes it difficult at the bargaining table, our negotiating power is significantly reduced leaving those at the negotiating table on behalf of our nation with a case of better something than nothing. 

 Over the years, especially since the turn of the millennium, the country has witnessed several projects from Chinese Investment notably the Hwange thermal power station expansion, Zimbabwe Defence University, Zambezi water pipeline and the soon to be finished new parliament building in Mount Hampden to mention but just a few. 

These are huge infrastructural projects evident on the ground which have improved the infrastructure of the country and whether the country got the short end of the stick on the negotiating table is a story for another day but plausible progress is there for all to see. Whilst there have been some rogue investors albeit few and small, these are on the doors of Harare and nothing to do the Asian giant which like any other nation out there will always be looking out for beneficial deals to tits political and economic interest.