Chinese firm plans $2bn Zim investment

HARARE - China Africa Sunlight Energy (Caseco) — a joint venture between Chinese Shandong Taishan Sunlight Investment Company and Zimbabwe’s Oldstone Investments — plans a $2 billion investment in the country over the next 12 years.

The Asian group is currently finalising a $1,3 billion loan from Export-Import Bank of China that will see commencement of an integrated coal mining and electricity generation project.

Isaac Chihuri, Caseco’s company secretary, said they intended to embark on various projects in the investment-starved country, including brick moulding, cement manufacturing, fertilizer production, a gas power station, liquid fuel and coke production among others.

“These projects will bring about huge Foreign Direct Investment which should create many new jobs, transform the country’s economy through energy provision and create up-steam and downstream Linkages,” he said.

The company’s thermal coal mine is expected to produce 5,4 million tonnes per year and will gobble over $400 million, while Gwayi thermal power plant requires at least $600 million.

Energy experts believe, because of its coal deposits, Zimbabwe has the capacity to become the largest independent power producing country in the region outside South Africa, but capacity constraints hamper exploration and exports.

Caseco’s other ventures such as a coal washing plant, coking coal plant, methane coal bed gas extraction and an agrochemical processing plant will use up to $240 million.

Its cement production, brick moulding, tar production and liquid fuel projects among others require over $750 million.

Chihuri noted that the company will work with environmental agencies in the country to ensure that its projects do not pollute the environment.

“It is therefore naïve to think that this level of development will not have some environmental issues.

“We understand the importance of best practice to environmental approaches to sustainable development hence our focus will be on mitigation measures,” he said.

Industry experts say the investment is welcome in the landlocked southern African country that has a peak electricity demand of 2 100 MW but is able to produce only 1 200 MW, with another 300 MW coming from imports, mainly from neighbouring Mozambique.

This comes as China is also speeding ahead with projects worth tens of billions of dollars to electrify Africa.

In Zimbabwe, China has been the main source of foreign investments to the country.

Last year, Chinese investment accounted for 72 percent of the more than $900 million dollars foreign invested-projects approved by the Zimbabwe Investment Authority.

Comments (5)

Good investment from China. But to do brick molding in the agriculturally prime lands of Christen Bank and adjacent to the CUT in Chinhoyi should not be allowed.

shami - 19 December 2013

Noble and good investment. But allowing brick moulding ventures in agriculturally prime lands such as in Christen Bank and the CUT in Chinhoyi should not be allowed.

shami - 19 December 2013

Amana, chimbotangayi ma investor $1000 musati mataura zvema bhidza izvozvo.

simba - 20 December 2013

We have a budget to feed the bureaucracy at $3. 5 bil of 4.1 bill and you think Oldstone will genuinely gain much for local workers at $2 bill over 12 years. I am not one to look a gift horse in the mouth however our most comprehensive considerations must account for the impact of Chinese enterprise on the environment and coffers intended for Zimbabweans, Chinese business people outsource our hard earned currency and what they put in earns several times as much as we gain extending to the raw materials we ship to buy back as value added products of questionable quality.

Gift Horse - 23 December 2013

well its the same old story again diferent people same story we have Chinese coming to invest zimbos pulizi look at chiadzwa they have failed to relocate and accommodate the affected populace. all this is just cheap talk.zimbo needs real hardworking people not these chihures again

munezvevamwe - 27 December 2013

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.
Enter the three characters from the image on the right. This helps prevent automated 'bots' from submitting spam to the site. This field is NOT case-sensitive. If the characters are a bit hard to see, try refreshing the code by clicking the image.