Why Zimbabwe’s opposition leader reportedly wants to give Chinese investors the boot

PUBLISHED: Thu, 03 May 2018 19:45:58 GMT

By Justina Crabtree

Source: Zimbabwe opposition leader reportedly wants to give Chinese investors the boot

Chinese investors are “busy asset-stripping” Zimbabwe’s resources, the country’s main opposition leader said in a speech this week, according to reports.

“I have seen the deals that (Zimbabwean President Emmerson Mnangagwa) has entered into with China and others, they are busy asset-stripping the resources of the country,” Nelson Chamisa said at a May Day rally on Tuesday, as reported by the BBC and local press.

Chamisa is leader of Zimbabwe’s main opposition party, the Movement for Democratic Change (MDC).

“I have said (that) beginning September when I assume office I will call the Chinese and tell them the deals they signed are unacceptable and they should return to their country,” he added.

CNBC was not able to independently translate Chamisa’s speech.

On Wednesday, the MDC published a statement on its website addressed to Zimbabwean state-owned newspaper The Herald. The statement accused the newspaper of publishing “malicious falsehoods” about Chamisa, although it did not specify what these were.

The “gist and essence” of Chamisa’s May Day speech was that his party “will not allow the mortgaging of this country for political expedience,” it said, attributed to Luke Tamborinyoka, presidential spokesperson and director of communications.

An MDC government “will audit all business deals and those that fail the national interest will be reviewed,” it said.

“Chamisa’s comments will play well with the MDC’s political base, who see Chinese loans as being fundamental for helping keep the former Mugabe regime afloat,” William Attwell, practice leader for Sub-Saharan Africa at emerging markets advisory firm Frontier Strategy Group, told CNBC on Thursday. “His comments seek to tap into growing frustration in Zimbabwe that Chinese investment has brought very little in terms of material benefits for locals.”

Mnangagwa’s nascent presidency has been characterized by his intention to revive the country’s economic fortunes through building bridges with both the East and the West. He initially came to power after former leader Robert Mugabe, under whom Mnangagwa served as vice president, was ousted in a military coup in November.

Mnangagwa’s first visit outside the African continent was to China last month, with attracting foreign investment high on the agenda. China has described itself as an “all-weather friend” of Zimbabwe.

Zanu-PF, the party of Mnangagwa and Mugabe, is to release its election manifesto on Friday.

Mnangagwa has pledged “free and fair” elections to be held in July of this year, and has said that he will invite international observers.

Attwell said that it was unlikely that Chamisa would be able to deliver on his pledge, should he win the upcoming vote.

“The raw fact is the Zimbabwe needs Chinese investment,” he said. “Whoever wins the July election is going to need as much funding as possible — from China and the West — to rebuild the country’s decaying infrastructure.”

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.