Zim economy poised for fast growth — investor
ZIMBABWE is poised to be among the fastest growing economies in Africa in the next 10 years if the people remain united, visiting Chinese vice chairman of China-Africa Business Council, Mr HuaRong Zhang, has said.
He made the remarks in Harare on Monday after having dinner with Vice President Constantino Chiwenga.
The function was also attended by Chinese A|mbassador to Zimbabwe Mr Huang Ping; Zimbabwe’s Ambassador to China, Mr Paul Chikawa; Chief Secretary to the President and Cabinet Dr Misheck Sibanda and his deputies Ambassador Christian Katsande and Dr Ray Ndhlukula, as well as Governor Reserve Bank of Zimbabwe Dr John Mangudya, among other senior Government officials.
Mr HuaRong said he was confident that in 10 years time Zimbabwe would become one of the fastest economies in Africa.
He said China was once poor but due to the open and reform policy it managed to boost its economy to become one of the strongest in the world.
“The reform and opening policy gave us chances to develop. China used to be one of the poorest economies in the world but in 40 years’ time, we have become one of the strongest and fast developed countries and we have solved poverty issues for 700 million people.
“Zimbabwe is a very beautiful country, rich soil and God has been generous with Zimbabwe, you have educated people,” he said.
He said the Chinese government was united.
It also ensures its people are empowered.
“Our principle is that part of our people should become wealthy first and to give our people jobs and more people will follow suit.
“The Chinese government through the reform and open policy, they are united and honest to foreign investors, they protect foreign investors. A lot of foreign investors come to China, bring skills, capital and gain wealth and also helped a lot of Chinese talents to grow and created substantial jobs in China and bring in a lot of foreign currency and it boosts the economic development of China.
“Ethiopians have built strong relationships with China because they want to learn the Chinese experience,” he said.
“Zimbabwe right now resembles 30 years ago in China. I want to invest in manufacturing to create jobs, so that Zimbabweans will have jobs, enable the production of products that are consumed locally to be produced locally.
“I also want to boost exports of the Zimbabwe agricultural products to other countries. I have strong conviction. Chinese entrepreneurs in China will gain support of government and support from the Chinese government,” he said.
“As long as the country is united, as long as the Government is open and united and honest, a lot of Chinese investors will come to this country. And of course the European market is very important because it is a good market to Zimbabwe’s agriculture products. The country needs to maintain the friendship with European countries.”
He said there was need for Zimbabwe to prioritise manufacturing of the more high tech products as the country has a lot of educated people.
“I believe that in the next 10 years Zimbabwe will develop fast and I believe the people here and the leadership of the local government will be able to conquer our biggest enemy; that is poverty.
“There is one key factor to the success of the Chinese experience, they build a special economic zone first and with the success of these examples they start coping the success initiatives to other provinces of the country,” he said.
Mr HuaRong said he was interested in investing in the manufacturing industry to boost industrialisation and modernise the agriculture sector.
“This is what Zimbabwe most needs. It is good for a government to be supported by its people. It should be open and protect interests of foreign investors, care about the people and jobs and ordinary people’s lives. This is the ideal Government you can have,” he said.
Mr HuaRong discouraged corruption.
“I am not a politician or professor but I am an actor. I am keen on action. I am to create over a 100 000 jobs in around three to five African countries.
“The Chinese President Xi Jinping has been advocating for the building of a community of shared destiny of all humankind and is thinking of global civilisation. I am following whatever he is saying and am an international entrepreneur and want to contribute to the civilisation of people,” he added.
VP Chiwenga said Zimbabwe was open for business.
“This is an important day for us in Zimbabwe. Mr HuaRong is a very important man. He has come because Zimbabwe is open for business. Our relations with China have grown from allweather (friends) to strategic level,” he said.
A commitee member of the Chinese People’s Political Consultative Conference, Mr HuaRong is also chairman of the Asian Footwear Industry Association. SOME tobacco farmers have resorted to selling their crop to middlemen who are offering instant cash.
They are shunning the auction floors where banks are giving them $300 per sale.
The balance is deposited into the farmer’s bank account.
Tobacco farmers said they were being lured by instant cash and better service offered by the middlemen.
The farmers said they were aware they were being duped by middlemen.
The middlemen buy tobacco from farmers at lower prices for resale at the auction floors where they get better prices for the same crop.
Hurungwe farmer Mr Edison Machona said it was better to sell their crop to middlemen than to wait for the long process at the auction floors.
“I came to the auction floors last week and sold my crop on Friday but I am still to get my money. The money takes long to reflect and at times farmers are forced to open new bank accounts instead of using the existing ones. The other challenge is that we do not have decent accommodation,” he said.
“As we speak I have not eaten anything since yesterday and I am a sick man. I have to eat first before I take my medication. I do not know how long I am going to be here since I have not received my money.”
Mr Moses Pedro, from Karoi, said illegal buyers were more efficient in terms of giving them their money which they receive in cash instead of waiting days for their money to be processed.
“I prefer to sell my tobacco to illegal buyers because I receive my money instantly rather than waiting here for days the cash we get from the auction floors is not enough for us to pay for transport and workers back home,” he said.
Maize
Another Karoi farmer, Ms Thulisile Mangena, said she was not happy with the $300 they were getting from banks.
“I do not work alone; there are workers back home. Where do I get the cash. The workers demand cash as they do not have bank accounts.”
Other farmers are contemplating switching from tobacco to maize as the latter is now also lucrative.
The Tobacco Industry and Marketing Board ordered Class B buyers off the floors because they were fleecing farmers by offering unviable prices.
Class B buyers would buy tobacco from farmers and resale at the floors. The arrangement was meant to promote competition but the buyers later started fleecing farmers forcing TIMB to intervene
TIMB corporate communications manager Mr Isheunesu Moyo said tobacco farmers were free to open accounts with banks of their choice.
“For the purpose of expediency, a floor can encourage a farmer to open a bank account with a bank it transacts with. This is, however, not compulsory,” he said.