Officials from China’s two main banks — the China Development Bank and China Exim Bank — have pledged to extend assistance to Zimbabwe to finance programmes integral to short- and long-term economic turnaround. 

This emerged at a meeting between President Mugabe and his delegation and senior banking officials in the Province of Anhui yesterday morning at the Anhui Foreign Economic Construction (Group) Co headquarters.

Chinese Ambassador to Zimbabwe Mr Xin Shunkang conveyed a message from chairman and president of China Exim Bank Mr Li Rougu, who said the institution would continue backing Zimbabwe’s development programmes on a win-win basis.

China Exim Bank, a fully government-owned bank under the leadership of the State Council, was established in 1994 as a policy institution enjoying the same international ratings as China’s sovereign ratings.

"Our commitment to you, Your Excellency is, please set your mind at ease.

"We shall contribute to your economic development.

"Unfortunately China Exim Bank president Mr Li cannot be here today and tomorrow since he has to attend a State meeting in Beijing.

"(But) he said that he will continue support to open loans as long as you co-operate with China," Ambassador Xin said as he introduced an envoy from China Development Bank president, one Mr Jiang, to deliver a message from his boss.

Said Mr Jiang: "On behalf of Mr Chen Yuan, chairman of China Development Bank, I would like to extend our warm welcome to Your Excellency.

"The China Development Bank is willing to provide assistance in your economic development process.

"We would like to send some Chinese experts to your country to discuss development projects in your mid- to long-term plan so as to identify which industry is most in need."

The Mid-Term Plan, Zimbabwe’s overall national economic development strategy for 2010 and 2015, has targeted to achieve US$9 billion Gross Domestic Product within the next five years.

Mr Jiang said China Development Bank was arranging a package to finance all necessary projects and would introduce some appropriate Chinese investors to partner Zimbabwe in the projects.

"If Your Excellency is agreeable, we will send a delegation of Chinese experts to your country as soon as possible," Mr Jiang said.

China Development Bank is also a full government bank under the direction of the State Council and responsible for raising funding for large infrastructure projects.

The two banks’ pledges follow Presi-dent Mugabe’s call to investors on Wednesday night to explore the vast opportunities available in Zimbabwe, particularly in infrastructure development, which he said was integral to economic development.

The President, who was addressing Zimbabwean and Chinese businesspeople at a State banquet held at the end of the Zimbabwe National Day celebrations at the ongoing Shanghai Expo, assured investors that Zimbabwe was committed to maintaining macro-economic stability by keeping its economy on the growth path.

In remarks to businesspeople at Afecc headquarters yesterday, President

Mugabe thanked China for being Zimbabwe’s all-weather friend.

He paid tribute to Afecc, which is already on the ground in Zimbabwe constructing the National Defence College in Mazowe whose foundation stone he laid two weeks back.

The President also revealed that the Chinese conglomerate had committed itself to investing in Zimbabwe’s diamond sector, and its team was exploring opportunities on the ground.

"I want to thank in particular the support being given by Chinese financial institutions, and extend our thanks also to the China Development Bank and China Exim Bank for their support, and to the companies that are at the forefront of coming to Zimbabwe," he said.

Afecc officials announced plans to set up a bank in Zimbabwe to help with the economic turnaround programme and urged President Mugabe to assist the speedy issuance of a licence.

Afecc is mostly interested in national and international engineering contracting.

The corporation invited President Mugabe to tour Anhui — touted as one of China’s most developed provinces with a bias towards mining and manufacturing.

The Chinese government recently extended the repayment period for a US$200 million loan extended to Zimbabwe under the Sino-Zimbabwe partnership.

This is expected to give space to increase capacity utilisation.

The buyer’s credit facility extended to Zimbabwe by China Exim Bank on a five-year grace period repayment plan was extended to eight years.

The loan was channelled towards procurement of agricultural equipment.

Zimbabwe’s agriculture sector has recorded the highest growth by any sector according to Finance Minister Tendai Biti’s Mid-Term Fiscal Policy Review.

The support from China Exim Bank also included a US$60 million concessionary loan for agro-equipment supply.

Zimbabwe benefited from the eight priority measures announced by China’s President Hu Jintao at the Forum on China-Africa Co-operation in Beijing in 2006.

The measures culminated in the construction of the state-of-the art China-Zimbabwe hospital in Mahusekwa, two schools in Bindura, an agricultural demonstration centre in Gwebi and the seconding of 10 agriculture experts and 23 volunteers to Zimbabwe.

President Mugabe and his delegation leave for Beijing today, where he is expected to hold talks with President Hu Jintao.