By CNBC and Business Report
Zimbabwe’s President Emmerson Mnangagwa is in China on a five-day state visit, his first outside of Africa since assuming power last November.
Mnangagwa intends to thank China for its support, reassure foreign investors and could walk away from talks with Chinese President Xi Jinping with backing for infrastructure projects.
It has also been reported that Zimbabwe is in talks to re-join the Commonwealth, a 53-nation bloc of former British colonies.
Prior to the trip, Mnangagwa outlined his economic agenda in an interview with China’s state-run news outlet Xinhua. “The issue is not only about attracting capital into Zimbabwe. It’s an issue of leapfrogging after 18 years of isolation so that we catch up with the rest of the developing countries,” he said.
The trip, which takes place until Friday, is Mnangagwa’s first state visit outside of Africa since taking over from Robert Mugabe. Mnangagwa met his Chinese counterpart President Xi Jinping on Tuesday.
Zimbabwe and China’s relationship dates back to 1979, in which China provided former President Robert Mugabe’s guerrilla fighters with weapons and training in the Rhodesian Bush War — part of Zimbabwe’s fight for independence from its British colonial government. Both Mugabe and his successor Mnangagwa have been described as friends by the Chinese government.
Mnangagwa visited China in the 1960s for military training.
“I will say thank you not only to the president of China but also the people of China for standing and supporting Zimbabwe during the hard times when the West imposed sanctions on us,” Mnangagwa told journalists.
As well as reinforcing amicable relations and reassuring Chinese investors, Mnangagwa could walk away from his meeting with Xi with backing for a “huge number of projects to be undertaken on the infrastructure side,” Martin Plaut, senior research fellow at the Institute of Commonwealth Studies, said.
Areas for economic collaboration between Zimbabwe and China include infrastructure, mining and transport. Zimbabwe is known for gold and diamond exports as well as tobacco, for which China was its top export market in 2016.
Mnangagwa assumed power in Zimbabwe in November last year after military intervention ended Mugabe’s 37-year tenure.
Mnangagwa has been touting a “Zimbabwe is open for business” mantra in an effort to reboot the country’s economy, which has famously struggled with corruption and hyperinflation.
This could mean also rapprochement with the West as it has been reported that Zimbabwe is in talks to re-join the Commonwealth, a 53-nation bloc of former British colonies, which could bring political and economic benefits. Mugabe withdrew membership in 2003 following a dispute over sanctions.
Nonetheless, “It’s hard to overestimate the relationship between Zimbabwe and China,” Plaut said. “This is the most important trip that (Mnangagwa) can make.”
Zimbabwe Foreign Affairs Minister Sibusiso Moyo said as many as 77 business leaders were in China for business meetings and investment opportunities during the state visit.
“The thrust is that the government is there to provide the appropriate business environment and the private sector is the foot soldier and in that regard there are 77 business people to attend several meetings that have been lined up,” he said.
Zimbabwe is suffering from foreign currency and liquidity constraints that have seen companies resort to the parallel market for hard currency to fund imports and other obligations while foreign shareholder payments are still crippled.
Mnangagwa has sought to open up the country for foreign investments after partially abolishing the indigenisation policy and moving to restore ties with the international community.
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