Zimbabwe Roundup: Power generation, bilateral ties, investments

Power generation

Zimbabwe's ongoing energy strategy is in focus as power generation from the Kariba Hydro-Power Station continues unabated until the year's end, primarily because the country has not yet exhausted its allocated water resources. In contrast, Zambia has opted to halt its power generation from the same dam due to a drought-induced lack of water. Energy Minister Edgar Moyo has underscored that Zimbabwe's current generation capacity remains around 215MW, significantly below its potential of over 1,000MW, which may necessitate load shedding. In a proactive measure, the Chronicle reports the Zimbabwean government is advocating that ferrochrome companies generate their own power, thereby conserving valuable water resources for redistribution to other sectors. Optimistically, the government anticipates a rebound in water levels and power generation capacity with projections of above-normal rainfall this season. Additionally, efforts are being made to encourage renewable energy development, exemplified by the duty-free importation of solar energy equipment.

Business ties with Indonesia

In a significant diplomatic advancement, Zimbabwe solidified its relationship with Indonesia by signing three pivotal memoranda of understanding (MoUs) during the recent Second Indonesia-Africa Forum. Vice President Kembo Mohadi represented President Mnangagwa and championed the swift initiation of the agreements across the health and fertilisation sectors. Complementarily, a strategic partnership has been established to improve access to affordable medical products through a collaboration between Zimbabwe’s National Pharmaceutical Company (NatPharm) and Indonesia’s Bio Farma, proposing the construction of a pharmaceutical plant in Zimbabwe. Further reinforcing this bilateral cooperation according to The Herald, a technology transfer MoU was inked to revolutionise fertiliser production, epitomised by a high-tech coal fertiliser plant developed by Zimbabwean firm Futurefert in collaboration with Indonesia’s Saputra Global Harvest.

17 agreements signed with China

The deepening bonds between Zimbabwe and China were formalised through the signing of 17 strategic agreements, targeting diverse sectors such as agriculture, infrastructure development, and mining. This occurred during a pivotal meeting between President Mnangagwa and President Xi Jinping in Beijing, where both leaders reiterated their dedication to advancing trade and cooperation. Among the prominent agreements, there are initiatives aimed at aligning China’s Belt and Road Initiative with Zimbabwe’s Vision 2030, specific protocols for agricultural exports, and broad collaborative efforts in the mining sector. This relationship has notably increased Chinese investments in Zimbabwe from approximately $446 million in 2019 to $3.4 billion by 2023, with over $2.2 billion earmarked for significant mining and infrastructure projects, reports the Chronicle.

Investment in the ferrochrome sector

In an effort to bolster investment in the ferrochrome sector, President Mnangagwa recently held discussions with the Xin Gang Lian Group, led by Mr. Zhou Xuddon. The meeting, which took place on September 3, 2024, was centred on exploring investment avenues to rejuvenate Zimbabwe's mining industry, which is integral to the national economy. Ferrochrome is particularly vital due to its application in stainless steel production. Mr. Zhou articulated a keen interest in expanding his operations within Zimbabwe, positioning the nation as a strategic supplier to international markets. As reported by the Chronicle, this initiative aligns with Zimbabwe's broader objectives of enhancing mineral production and fostering job creation, ultimately driving sustainable economic growth.

Stolen vehicles from South Africa

In a concerning development, South African authorities have made substantial recoveries of nearly 100 stolen vehicles, covertly smuggled towards neighbouring countries, including Zimbabwe, Mozambique, Malawi, and Zambia, from January to August 2024. A substantial portion of these recoveries, specifically in Vhembe District, amounted to 96 high-powered cars, culminating in 61 arrests. Noteworthy seizures included 78 vehicles in Musina, alongside other recoveries in various locations. The operation also revealed the interception of firearms, The Herald reports, signalling a concerted effort to combat rampant cross-border crime. The escalating trend of vehicle thefts emanating from South Africa underscores a worrying pattern, with some thefts reportedly involving fraudulent insurance claims by vehicle owners, which necessitates enhanced vigilance and law enforcement measures across borders.