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Chinese investment gives Zimbabwean economy 'a shot in the arm'(2)

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2015-12-01 11:26Xinhua Editor: Gu Liping

In the first decade of this century, many farms were left idle while Zimbabwe's agricultural output plummeted, turning the country from food exporter to a net importer.

Mugabe, the revolutionary-hero-turned-president, reacted with announcing a Look East policy in 2002, promoting Zimbabwe to form closer ties with countries in emerging Far East, especially China, instead of relying on the traditional Western partners.

Today, China has emerged as Zimbabwe's top foreign investor. And agriculture, as Zimbabwe's pillar economic sector, is well funded by the growing Chinese investment.

Zimbabwe-China Wanjin Agricultural Development Company (Wanjin), the joint venture that manages Hunyani farm, has invested 15 million U.S. dollars in ten farms across the country since it was set up in December 2010, according to its general manager He Hongshun.

As in the partnership, Wanjin's Chinese shareholder chips in with capital, technology, and management while the Zimbabwean shareholder - the defense ministry - provided the land. All of its output, primarily grain, is sold locally.

"We are here to restore the idled farms. When we first came, there were grass and weeds everywhere," he said. "We started with two farms and now expanded to ten. Last year, our grain output reached more than 10,000 tons, making our contribution to Zimbabwe's food security."

Besides food, he said, local communities also got jobs, power and water supply as the Chinese investors became the new neighbor.

GOLDEN LEAF

Zimbabwean Agriculture Minister Joseph Made said China and Zimbabwe have a wide variety of cooperation in terms of agriculture, and most notably the tobacco farming.

With smoking considered a deviant form of life back at home, Zimbabwe sells 95 percent of its tobacco abroad. Last year, about 40 percent of the country's tobacco export was destined for China.

Zhang Heng, managing director of China Tobacco Corporation's local subsidiary Tianze Tobacco Company Limited, said the company was founded in 2005 to join the already crowded market of Big Tobacco in Zimbabwe, dominated by British American Tobacco and several local white commercial farmers-owned companies.

But over the years, Tianze managed to secure its leading marketplace on the back of China's unabated demand for tobacco and a thriving contract-farming scheme.

Under such a scheme, Tianze provides interest-free loans to farmers to buy farm inputs and follow with regular technical advice. Farmers are expected to sell their golden leaf to the company to repay the loans and earn whatever that is left. Farmers with good credit records get bigger investment next year.

Cloudy Nyakonda, a local tobacco farmer, said he remembered what started off like any one of his usual field days in 2007 turned out to be a life-changing event.

"Officials from Tianze visited my farm and they invited me to join them. I accepted, and since then, I have never looked back," he said.

This year, the unassuming Nyakonda is expecting to harvest 500 metric tons of tobacco leaf on his 150-hectare farm.

"After paying all the overhead expenses, I remain with money enough for me and my family to survive. I have managed to build a nice house at my farm and I am able to send my children to better schools," he said.

  

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