Chinese companies playing key role in Zimbabwe economy: minister

Zimbabwean Finance Minister Patrick Chinamasa Wednesday said Chinese companies are playing a key role in the Zimbabwe's economy as they are undertaking all the major projects at the moment.

Answering questions from lawmakers at a parliamentary session, Chinamasa said Zimbabwe and China have very strong relations that the two sides are cooperating in a number of major projects, especially in the power sector in Zimbabwe.

Last year, China Machinery Engineering Company was awarded the expansion of the Hwange Thermal Power Station worth 1.3 billion U. S. dollars while Sino Hydro won a tender of 355 million U.S. dollars to expand Kariba South Hydro Power Plant. The two projects are expected to produce additional 900 megawatts (MW) of electricity to the national grid.

Zimbabwe is producing 1,200 MW power against the current energy demand estimated at about 1,700 MW. But the demand can further grow once the industries are revived, government officials said, adding that the country has not undertaken any major power project over the past 34 years since independence, during which period the population has doubled.

Trade between the two countries also doubled from 562 million U. S. dollars in 2010 to 1.1 billion U.S. dollars in 2013. Chinese investment, meanwhile, has led foreign investment to Zimbabwe over the past few years. Last year, Zimbabwe attracted 600 million U.S. dollars investment projects from China, ranking number one in any African country in terms of attracting Chinese investment.

Chinamasa said Zimbabwe is having constructive negotiations with the Chinese for various projects and he remains optimistic of the cooperation prospect.