Logic behind China-Zim co-operation

are some wrong arguments against China-africa financing co-operation, the most absurd of which is the so-called “Chinese debt trap”.

Following their political independence, african countries have made tireless efforts toward national development and economic revitalisation.

In this process, a shortage of funds for development and the need for external financing are problems that african countries have to face. Therefore, africa's debt situation is in nature an issue of development, so is Zimbabwe’s debt situation.

The solution lies in ensuring the effective use of funds and loans and increasing capacity for self-generated development.

However, instead of truly helping africa promote economic growth, generate more tax revenues, and increase exports and earn forex for improved balance of payments, some financing from Western countries mainly focus on non-manufacturing sectors, and even come with political strings attached such as political reforms in receiving countries. such financing can easily end up as unpayable bad loans. This is the real “debt trap”.

based on such logic, China has been carrying out co-operation with Zimbabwe by focusing on the real and urgent needs of Zimbabwe.

It is always Zimbabwe to make decisions on what and whether to build. China never decides anything for Zimbabwe. The grants and financial supports by China always follow the principles of openness and transparency.

every project is in the open without anything to hide. It’s always easy to find out where the funds are used and what benefits are generated. This is the best transparency.

In its co-operation with africa, China stays committed to the principles of equality and mutual benefits and respects the independent choices of african countries.

China never attaches political strings or economic coercive requirements to its assistance to africa, never exports its ideologies or values to africa, never forces african countries to use their natural resources as collateral in exchange for grants or loans.

Not a single african country slid into domestic political unrest or economic distress just because of its co-operation with China.

as long as being managed and operated well, the China-financed projects in Zimbabwe could generate sustained returns for Zimbabwe that far outweigh the input, serve as long-term support for Zimbabwe’s economy and benefit Zimbabwean people for generations. This is the most undisputed sustainability.

I would like to call on the international community to truly benefit africa when providing financial support. The financial support for africa should adhere to the nature of assistance and not only to seek commercial returns.

according to the estimates of the uK's Debt Justice based on World bank data, the interest rates of China’s official and commercial loans to african countries are lower than the interest rate (of 5%) on commercial loans from other countries.

They are also far lower than the interest rates (of 4-10%) on the 10-year government bonds, according to the numbers disclosed by the african Development bank.

besides, the sovereign loans provided by China come with a fixed interest rate, while Western commercial creditors usually apply fluctuating interest rates.

as the us dollar enters its rate hike cycle, the debtor countries are facing growing pressure on repayment.

to put it simply, the so-called “Chinese debt trap” is a lie made up by some Western countries and politicians to deflect responsibility and blame.

What african people should stay alert to and try their biggest efforts to shake off is the “trap of underdevelopment” and the “trap of intervention in internal affairs by external forces”.

I would also like to reiterate that the Chinese government has consistently required Chinese enterprises to abide by the laws and policies of host countries, protect the environment, respect labour rights, take their social responsibilities and accept supervision of the Zimbabwean authorities and public scrutiny.

We firmly support Zimbabwean government in continuously refining the regulatory framework to enhance the supervision on all foreign investments and create a more favourable investment climate.

Third, it stays open and inclusive. supporting africa’s development is the common responsibility of the international community.

We welcome greater interest and input towards africa from the international community. There should be no exclusive competition or “zerosum” game in supporting africa’s development.

China also values the trilateral co-operation in africa. For example, nearly two million Zimbabweans, especially women and children, were given access to medical and health care services under a joint initiative between China and unicef that the Chinese government sponsors through its south-south Co-operation assistance Fund.

China welcomes more and more countries to become sincere development partners of Zimbabwe, but we are firmly opposed to any practice that meddles in Zimbabwe’s internal affairs and tramples on Zimbabwe’s sovereignty in the name of “assistance”, forcing Zimbabwe to accept unequal co-operation by sanctions or other coercive measures.

under the leadership of He president mnangagwa, and with the tireless efforts of Zimbabwean people, we believe that more fruitful results will be achieved through the “open For business” policy, the investment environment will surely be improved, and more investments by well-established foreign enterprises, including Chinese enterprises, will come to Zimbabwe.

all of these will provide a strong impetus to Zimbabwe’s economy.

In 2021, president Xi global Development Initiative and africa is the first continent to collectively welcome and support the initiative. This demonstrates our determination to strengthen solidarity and coordination and promote equity and justice under the new circumstances.

Last year, the “nine programmes” of Chinaafrica co-operation were adopted during the 8th ministerial Conference of the Forum on Chinaafrica Co-operation (Focac).

During the coordinators’ meeting on the Implementation of the follow-up actions concluded last week, China and africa coordinated the approach to co-operation, identified priority areas and projects, and made steady and solid progress in implementing the “nine programmes”.

Looking into the coming years, the handover of the New parliament building, National pharmaceutical Warehouse and 500 boreholes will soon be witnessed. We are also seeing good progress in the Hwange thermal power station expansion and Netone phase III project.

ten million doses of China-aid Covid-19 vaccines will arrive in Zimbabwe this year. We are going to welcome another batch of Chinese agricultural experts to Zimbabwe and continue to build agricultural demonstration villages.

more China-aid projects including another 300 boreholes, phase of High-performance Computing Centre and anti-Narcotics Laboratory will be commissioned.

Zimbabwean citrus will appear in the Chinese market. bilateral co-operation on clean energy and e-commerce will be discussed. more Zimbabwean students will go to study in China. more great Chinese companies will come to invest.

The issue of “sustainability” is both simple and complex. but no matter what dimension is used for research, discussion and evaluation, facts and results should always be put first, because only facts and results are the truest and can truly stand the test of history and time.

Thank you!