Saturday, 5 May 2018

ED WILL GROW ECONOMY : CHINESE TYCOON

President Emmerson Mnangagwa has for a while now been likened to former Chinese leader Deng Xiaoping.

The late paramount leader of the People’s Republic of China between 1978 and 1989 is credited with launching the Asian giant’s economic reform trajectory.

While the comparison between ED and Deng can be argued to be far-fetched given the two country’s political, economic and social dynamics, it would be foolhardy to ignore some of the similarities and lessons that Zimbabwe can learn from the Chinese model.

The fact that some Chinese experts also see some elements of former President Deng in President Mnangagwa is a refreshing account.

A Chinese tycoon and business expert who was in the country last week reckoned Zimbabwe is poised to undergo rapid economic transformation that is similar to what China’s economy went through in the late 1970s to the 1980s.

Addressing a high profile meeting in Harare last Monday night, China-Africa Business Council chair, Mr Huarong Zhang said Zimbabwe current reform process bears striking resemblance to that of China of 40 years ago.

Mr Huarong who is also a Chinese business tycoon and a member of the Centre for China and Globalisation said: “I believe that in the next 10 years, Zimbabwe will develop fast.
“I believe the people here and the leadership of the local government will be able to conquer our biggest enemy; that is poverty.
“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 beautiful country, rich soil and God has been generous with Zimbabwe, you have educated people.

“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.”

According to Mr Huarong one of the most important policies that Government should prioritise is the protection of business investors’ interests. Mr Huarong believes that Zimbabwe can win big if the country is honest and open to investors.

“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.”

He said Zimbabwe should increase exports to China, which has a vast market for raw products from Africa.

“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. Mr Huarong who has investments in the footwear industry in Ethiopia said he is also keen to set up shop in Zimbabwe.
President Mnangagwa has on a number of occasions spoken about the need to protect investors and during the launch of the country’s Investment Policy earlier this year, the Head of State and Government affirmed his commitment to the same.

Said the President: “The new investment law shall ensure non-discrimination between domestic and foreign investors and shall accord all foreign investors and their investments treatment no less favourable than that accorded in like situations to domestic investors in relation to the establishment, expansion, operation and protection of their investments, with any specific exceptions being provided for in a negative list to be annexed as a schedule to the law. The new investment law will enforce the protection of investors.”

President Mnangagwa recently visited China and struck an agreement with the Asian economic giant’s President Xi Jinping to unlock funding for old and new projects worth billions of dollars.
Since the visit, a series of Chinese investors have visited Zimbabwe to follow up on commitments made and also unlock new partnerships.

According to the World Economic Forum (WEF), China’s meteoric rise over the past half century is one of the most striking examples of the impact of opening an economy up to global markets.
WEF says over that period China has undergone a shift from a largely agrarian society to an industrial powerhouse and in the process it has seen sharp increases in productivity and wages that have allowed China to become the world’s second-largest economy.


This year, Zimbabwe’s Government has set its economic growth target at 4,5 percent with further growth expected in the next few years.Sunday Mail

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