The warning by
the secretary for Presidential Affairs in the Office of the President and
Cabinet, Tafadzwa Muguti, shows that Zimbabwe has run out of patience with
Chinese investors, after rolling out a red carpet for the Asian giant at the
turn of the millennium under the “Look East” policy.
The warning
also comes as some Chinese firms have been accused of operating outside formal
financial systems, externalising millions in undeclared earnings and flouting
local laws on labour, the environment and mineral beneficiation.
Authorities
have also raised alarm over reports of corruption, permit abuse and growing
social tensions linked to exploitative practices and disrespect of cultural
norms.
Chinese
businesses have often been criticised for failing to bank revenue locally,
exporting raw minerals without adding value, engaging in illegal mining and
ill-treating local workers.
Speaking at the
China-Zimbabwe business cooperation roundtable in Harare yesterday, Muguti said
investors who come should create value for the country.
“The majority of you business people are not
banking [money]. You do not have bank accounts. You are keeping money under
your mattress, under the floor, or in the roof. But in China, you don’t do
that. If they all take US dollars and Zimbabwe Gold currency and keep them in
their houses, it causes our economy to collapse. There will be no liquidity in
the market. So starting from now, we are directing you to bank your money.”
Muguti said
local and foreign currency earnings must be deposited into banks and that the
central bank should be used for outward remittances.
He also
highlighted growing concern over illegal business operations by Chinese
nationals entering the country as tourists.
“It’s not
difficult for Chinese nationals to get investment permits. Why are you coming
illegally? Let’s follow the protocols. No need to bribe anyone. No need to
hide. Let’s do things properly,” Muguti added.
He said all
Chinese nationals applying for visas or permits would require a letter of
acknowledgment from the Chinese ambassador to ensure the government knows who
is in the country.
Muguti rebuked
the Chinese national for environmental violations and cultural insensitivity,
particularly in the mining sector.
“We are
noticing that some Chinese companies are going and digging up our ancestors’
graves to extract granite or gold. There are some of them picking up the bones,
putting them aside and starting to dig. That’s the greatest disrespect to any
person, even in your culture, “ he said.
“So if we are
not patient with one another, then we can’t work together. Take your children
to our schools. Mix with Zimbabweans. Don’t go and create a Chinese camp. How
are you going to know the people of Zimbabwe if you just stay as Chinese?”
Muguti also
reminded Chinese companies of a deadline set by President Emmerson Mnangagwa
for all mineral exports to be processed locally.
“Zimbabwe wants
to manufacture lithium batteries here. Let’s work together and manufacture
locally. From Zimbabwe, you can export to DRC, Zambia, Malawi, South Africa,
Botswana, Namibia, Angola. That’s what we agreed at the China-Africa Economic
Forum.”
In response, Steve Ke Zhao, CEO of the
China-Zimbabwe Exchange Centre, acknowledged government frustrations, but said
many Chinese investors were facing operational bottlenecks.
“Unfortunately,
at the moment, the Chinese companies are facing a lot of trouble. After
investing huge amounts like US$5 million or US$10 million, they’re facing
challenges,” he said.
“Some get ZIDA
[Zimbabwe Investment and Development Agency] certificates, but can’t get work
permits. Machinery is sitting idle. They can’t be installed. They can’t
operate. They end up doing something illegal, not because they want to, but
because the system delays.”
The
China-Zimbabwe Exchange Centre boss said most Chinese investors were good
people who wanted to develop Zimbabwe and comply with the law, but a lack of
information and complex processes had caused frustration.
“There are a
lot of new people coming in. They don’t understand the culture. They don’t
understand the labour laws. That’s why we’re hosting workshops with banks and
labour agents.” Newsday
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