Africa-Press – Zimbabwe. THE Office of the President and Cabinet has issued a stern warning to Chinese businesses in Zimbabwe, demanding an immediate halt to illicit financial activities, environmental harm and disregard for local laws.
The warning by the secretary for Presidential Affairs in the Office of the President and Cabinet, Tafadzwa Muguti, shows that Zimbabwe has run out of patience with Chinese investors, after rolling out a red carpet for the Asian giant at the turn of the millennium under the “Look East” policy.
The warning also comes as some Chinese firms have been accused of operating outside formal financial systems, externalising millions in undeclared earnings and flouting local laws on labour, the environment and mineral beneficiation.
Authorities have also raised alarm over reports of corruption, permit abuse and growing social tensions linked to exploitative practices and disrespect of cultural norms.
Chinese businesses have often been criticised for failing to bank revenue locally, exporting raw minerals without adding value, engaging in illegal mining and ill-treating local workers.
Speaking at the China-Zimbabwe business cooperation roundtable in Harare yesterday, Muguti said investors who come should create value for the country.
“The majority of you business people are not banking [money]. You do not have bank accounts. You are keeping money under your mattress, under the floor, or in the roof. But in China, you don’t do that. If they all take US dollars and Zimbabwe Gold currency and keep them in their houses, it causes our economy to collapse. There will be no liquidity in the market. So starting from now, we are directing you to bank your money.”
Muguti said local and foreign currency earnings must be deposited into banks and that the central bank should be used for outward remittances.
He also highlighted growing concern over illegal business operations by Chinese nationals entering the country as tourists.
“It’s not difficult for Chinese nationals to get investment permits. Why are you coming illegally? Let’s follow the protocols. No need to bribe anyone. No need to hide. Let’s do things properly,” Muguti added.
He said all Chinese nationals applying for visas or permits would require a letter of acknowledgment from the Chinese ambassador to ensure the government knows who is in the country.
Muguti rebuked the Chinese national for environmental violations and cultural insensitivity, particularly in the mining sector.
“We are noticing that some Chinese companies are going and digging up our ancestors’ graves to extract granite or gold. There are some of them picking up the bones, putting them aside and starting to dig. That’s the greatest disrespect to any person, even in your culture, “ he said.
“So if we are not patient with one another, then we can’t work together. Take your children to our schools. Mix with Zimbabweans. Don’t go and create a Chinese camp. How are you going to know the people of Zimbabwe if you just stay as Chinese?”
Muguti also reminded Chinese companies of a deadline set by President Emmerson Mnangagwa for all mineral exports to be processed locally.
“Zimbabwe wants to manufacture lithium batteries here. Let’s work together and manufacture locally. From Zimbabwe, you can export to DRC, Zambia, Malawi, South Africa, Botswana, Namibia, Angola. That’s what we agreed at the China-Africa Economic Forum.”
In response, Steve Ke Zhao, CEO of the China-Zimbabwe Exchange Centre, acknowledged government frustrations, but said many Chinese investors were facing operational bottlenecks.
“Unfortunately, at the moment, the Chinese companies are facing a lot of trouble. After investing huge amounts like US$5 million or US$10 million, they’re facing challenges,” he said.
“Some get ZIDA [Zimbabwe Investment and Development Agency] certificates, but can’t get work permits. Machinery is sitting idle. They can’t be installed. They can’t operate. They end up doing something illegal, not because they want to, but because the system delays.”
The China-Zimbabwe Exchange Centre boss said most Chinese investors were good people who wanted to develop Zimbabwe and comply with the law, but a lack of information and complex processes had caused frustration.
“There are a lot of new people coming in. They don’t understand the culture. They don’t understand the labour laws. That’s why we’re hosting workshops with banks and labour agents.”
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