By Bernard Bwoni
China owns US$1.317 trillion of the US Government’s Treasury bonds and
you never hear anyone commenting that China is colonising the USA? In the case
of Zimbabwe you often hear headlines such as ‘Zimbabwe Government ‘sells
out’ to China or ‘Zimbabwe mortgaging Zimbabwe’s future to China’. His
Excellency President Mugabe is currently in China to negotiate a package to
fund the country’s ZIMASSET blue-print and other infrastructural development
projects.
Just as with the relationship between China and the US, President
Mugabe’s trip is purely a business and the key is mutually beneficial
engagement. The country is negotiating for a US$4 billion rescue package to
steady the economy and start implementing major infrastructure developments.
The Build-Operate-Transfer (BOT) Project Delivery System is a way to finance
big projects especially infrastructure projects through public-private
partnerships where China will receive a concession from the government to
construct big infrastructure development projects in Zimbabwe. This enables
China to recover her billions of investment in the project and at the end of
the concession period the end project provides that the infrastructure belongs
to Zimbabwe and China has her investment back.
Visionary Leader: President Mugabe was described as a 'renowned leader of the African national liberation movement' and 'an old friend of the Chinese people' during the visit |
China will implement the infrastructure
projects in the ‘Build’ phase, will get its investment during the agreed period
of ‘Operate’ and at the end of the ‘Operate’ phase the project will ‘Transfer’
to the Government of Zimbabwe. This is a mutually beneficial agreement where
Zimbabwe will acquire power plants, major highways, huge solar projects,
railways, airports, water supply facilities and China will also benefit from
her investment and recover the costs of funding the projects. The Chinese will
fund new and existing capital projects under the BOT basis and this will ensure
that the country pays for the projects over a long period. This allows for
tangible development and the tax burden will not fall on the already struggling
people of Zimbabwe.
Some sceptics have expressed concern that the country is
planning to sideline the State Procurement Board and award government
infrastructure projects to Chinese state companies without going to tender. But
these are government to government initiatives to fund national projects there
is no need for them to go through tender. There are many countries world over
using or have used BOT initiatives to fund huge infrastructure projects and
these include the Saudis with their oil, Abu Dhabi, Taiwan, Malaysia, Thailand
and the Channel Tunnel was constructed on the backdrop of a BOT with a 60 year
concession period. So when you hear such statements as President Mugabe has
gone to China to mortgage the country and that this is a ‘so-called new form of
colonialism’ but the point remains that it is just a BOT, purely a commercial
deal that is not only unique to Zimbabwe.
A guard of honor forms before a welcome ceremony for President Mugabe; |
The leaders oversaw the signing of a number of agreements, including on economic, trade and tourism cooperation and concessional loans |
It is only just over six months ago that the
British Prime Minister Mr Cameron, British Chancellor of the Exchequer Mr
Osborne and Mayor of London Boris Johnson all led individual high powered
business and trade delegations to China. That went to pass without anyone
proclaiming that Britain was being colonised by China. It is what it is, purely
a business deal. The US and Europe have been tripping over each other seeking
economic lifelines from the same Chinese they claim are on a ‘new form of
colonising Africa’.
It was an honour watching our President being welcomed with
such honour from our honourable friends from China. He was welcomed with a full
honour guard outside the Great Hall of the People where he received a 21-gun
salute. That is the nature of the relationship with our engagement partners
from the east, mutual respect. You compare that with our traditional engagement
partners who put conditionality after conditionality to the engagement and that
was evidenced in the recent EU-Africa Summit and US-Africa Summit. The public
ridicule to a Head of State and all the spanners in the works are an indication
of engagement that is not based on mutual respect. Zimbabwe is going to triumph
and that is thanks to the vision from the country’s look east policy.
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Bernard Bwoni is a member of the ZANU PF UK Chapter and is the Secretary General of the SW England Branch
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Bernard Bwoni is a member of the ZANU PF UK Chapter and is the Secretary General of the SW England Branch