Is China's growing Zimbabwe alliance key to its bigger plans for southern Africa?
The US$3.6 billion plan to build Palm River Energy Metallurgical Industrial Park in the province of Matabeleland South is being led by one Chinese firm – Xinganglian (Shanxi) Holding Group, which aims to exploit abundant reserves of coal, iron ore, and chrome and position Zimbabwe as a major steel producer.
The project will cover 5,163 hectares (12,758 acres) within a special economic zone incorporating mining, power generation, coke production and steel manufacturing. It is expected to be built in five phases over 12 years.
Zimbabwe has become a key resource destination for China as companies continue to seal deals to establish mineral processing operations, including steel plants, at a time when such industries face decline in other countries, such as neighbouring South Africa.
The scope of the investments suggested that China had chosen Zimbabwe as its inaugural steel and chrome industrialisation zone in Africa, according to Lauren Johnston, a China-Africa specialist and associate professor at the University of Sydney's China Studies Centre.
'This makes sense. Zimbabwe has a rich human capital and natural resource endowment,' Johnston said.
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