Zim-China trade forecast to soar this year

Arda targets to put 100 000ha under grain

ZIMBABWE and China are on course to further deepen economic ties this year, underlining the growing relations between the two countries under the comprehensive strategic partnership of cooperation framework.

Last year ended on a high, with trade volumes estimated at over US$2,5 billion — a new record.

As of October, trade between Harare and Beijing had increased by 39,4 percent to US$2,4 billion compared to the same period in 2022.

Zimbabwe’s exports to China achieved a US$29 million trade surplus in the period.

The Asian giant underlined its importance as it has become the country’s third-largest export destination, with neighbouring South Africa as the largest and the United Arab Emirates as the second-largest export market.

Figures from the Zimbabwe National Statistics Agency (ZimStat) indicate that China is Zimbabwe’s second-largest source market after South Africa.

As increased economic activity is forecast in 2024, trade between the two countries is likely to breach the US$3 billion mark — another new record. This would be one of the many milestones to be achieved as a result of the good diplomatic and economic cooperation between the traditional “all-weather friends”.

China continues to import more high-quality products from Zimbabwe.

And political stability following last year’s elections would likely see more economic activity, especially in manufacturing, further driving trade between the two countries.

This ultimately leads to improved economic activity and better living standards for the people.

Agricultural and new frontiers

China remains a key supporter of Zimbabwe’s agriculture sector. Last year, the US$1,36 billion in exports Zimbabwe made to China were dominated by tobacco.

Merchants from the Asian giant have invested in contract farming and buying leaf tobacco. China also issued a protocol allowing Zimbabwe to export citrus fruit to the country last year, which represented a huge boost for local farmers.

There are expectations that trade in agricultural produce will expand amid interest in products such as blueberry, macadamia nuts and avocadoes, among others.

Given China’s huge size, the market for local produce exists. However, the challenge is on local farmers to increase output and meet the required standards. There is enough political willpower between the two governments to allow for increased unimpeded trade. There are several opportunities that are presented

Business Reporter

THE Agricultural and Rural Development Authority (Arda) is still planting crops at its estates around the country as it targets to put more than 100 000 hectares under grain in the current El Niño-delayed cropping season.

The parastatal’s chairperson, Mr Ivan Craig, said the targeted hectarage for the 2023/4 cropping season is 20 percent lower than the area covered in the previous season.

“Planting is ongoing and our target is

Manhize steel plant is set to commence production for the first phase of what will become Africa’s largest steel plant

by technical support from China, which has Group have since 2022 acquired lithium Last year saw Chinese companies hosting

dispatched a new batch of agricultural experts mines and invested in projects worth a combined platforms such as the Job Fair and the Stanbic

under the “demonstration villages” concept. US$678 million in Zimbabwe. China Day, both of which exposed Zimbabweans

China has over 50 such villages in Africa They are presently at various stages of developing to the opportunities presented by Chinese

and these are set to help improve the capacity the mines. businesses, including in the import and export

of local farmers through new technologies and In the first quarter of 2024, the Manhize businesses.

advanced agricultural knowledge. steel plant is also set to commence production On the other hand, local businesses participated

Foreign Direct Investment

China is Zimbabwe’s biggest source of foreign direct investment (FDI).

As of last year, Zimbabwe had licensed over 427 Chinese companies in various sectors of the economy, according to the Zimbabwe Investment and Development Agency (ZIDA).

These investments are mainly tilted towards the mining, manufacturing, services, construction, transport, energy, agriculture and tourism sectors. Zimbabwe already boasts of huge investments by large companies such as Tshingshan Group, Sinomine Resource Group, Zhejiang Huayou Cobalt, Chengxin Lithium Group, Eagle Canyon group, among others. Further investments are expected in renewable energy, including the age-defining US$1 billion floating solar plant proposed for Kariba Dam.

Chinese giants Sinomine Resource Group, Zhejiang Huayou Cobalt, and Chengxin Lithium 100 000ha of maize and 20 000ha of sorghum … we are trying by all means to make sure that we plant as much as possible,” said Mr Craig. “Compared to the previous summer cropping season, the hectarage targeted for planting is slightly less because of the evidence of El Niño . . . not everybody went on full throttle to plant, so you find that

for the first phase of what will become Africa’s at the 6th China International Import

largest steel plant. More exciting news beckon. Expo (CIIE) in Shanghai in November.

According to ZIDA, 180 new investments There were also other events in China

worth US$3,4 billion were licensed from the throughout the year where Zimbabwean

Asian country in the third quarter of 2023, companies in sectors such as leather industry,

meaning more projects financed by Chinese processed foods, arts and crafts, telecommunications,

capital might materialise this year. Chinese mining, energy and tourism

companies are now the biggest employers in participated.

the country, accounting for over 100 000 jobs. Going forward, there is need to broaden

The figure is forecast to increase in 2024. investments into new areas, especially in

At the same time, Chinese-supported projects, the digital economy, transport and logistics,

such as the expansion of airports, power renewable energies and health, that will

and telecommunications, will create jobs and incorporate more players from both sides,

contribute to the economy in both upstream especially younger and futuristic investors.

and downstream activities. This calls for more innovative thinking on the

Exploring new opportunities

The growth of economic cooperation between Harare and Beijing is being supported by a number of investment activities being undertaken by players to increase awareness on opportunities that exist on both sides. we are lower by about 20 percent; that is land expected to be put under a crop.”

Arda owns 21 estates across the country with about 98 000ha of arable land, of which 19 000ha have irrigable capacity. Before the advent of the Second Republic in 2017, most estates were idle and underutilised due to years of neglect and lack of investment.

part of policymakers. It is also believed that if

financial services become more involved, this

would boost the flow of business between the

two countries.

◆

Shelton Dzapasi is a researcher with Ruzivo Media & Resource Centre, a local thinktank that analyses global and local issues

“This project we are not doing single-handedly; we are working hand-in-hand with Agritex technocrats … and we are also working hand-in-hand with AFC (Agricultural Finance Corporation) in funding the inputs,” he said.

“This is a joint venture programme and you find that we are looking at all the irrigation schemes and individual farmers who are actually contracted by Arda to have an outgrower programme.