China and Zimbabwe, a billion-dollar agreement for a steel plant

13/06/2018

 

The agreement signed provides for 1 billion US dollars to build a steel plant capable of producing up to 2 million tons of steel a year

 

China’s interest in Zimbabwe steel is now a certainty. In fact, the two countries signed on Monday a 1-billion-U.S.-dollar Memorandum of understanding (MoU) for establishing a steel plant that can produce up to 2 million tonnes of steel per annum.

But this is not the only agreement signed by China with Zimbabwe these days. Indeed, Mou is among the numerous agreements signed during the Zimbabwe-China Business Forum.

During these four days there will also be a high-level Chinese delegation from Zhejiang Province led by Che Jun, secretary of the Zhejiang Provincial Committee of the Chinese Communist Party (CPC).

 

The delegation said it went to Zimbabwe to help it industrialize its economy

 

In April, the president of Zimbabwe Emmerson Mnangagwa signed several agreements with China for greater investment and greater cooperation between the two countries.

In addition to the obvious economic advantage of Zimbabwe, Munesu Munodawafa, Ministry of Mines and Mining Development, told Xinhua that the agreement also provides for the creation of a 600-megawatt thermal power plant to provide power to the steel plant that will be located in Zimbabwe province in Midland.7

 

The project of a 600-megawatt thermal power station is being spearheaded by a subsidiary of Chinese firm Tsingshan in Zimbabwe

 

Munodawafa said: “We anticipate that when it’s fully operational, this project will create up to 3,000 permanent jobs and produce up to 2 million tonnes of steel per year over the life of the project which we have put at about 25 years”.

«Tsingshan is one of the top five producers of stainless steel in the world. We believe we have chosen the best and we believe we will get the best out of them” he said.

Zimbabwean President Emmerson Mnangagwa is enthusiastic and he invited more Chinese firms to exploit Zimbabwe’s vast investment opportunities: “We look forward to massive investment by Chinese companies that will see Zimbabwe fulfilling its vision of becoming a middle-income economy by 2030“.

 

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