The Belt and Road Industry Promotion Association of Zhongguancun has been conducting a series of activities themed ‘Visit the African Embassy in China’.
The initiative is to deepen Africa-China innovation cooperation and build a bridge for Chinese businesses to enter Africa.
Recently, the association comprising The Promotion Council and it’s governing board, Naton Technology Group and other Chinese-funded enterprises jointly held in-depths negotiations with Zimbabwean Embassy officials at the Zimbabwean Embassy in Beijing.
H.E Ambassador Martin Chedondo applauded China’s achievements in hi-tech development and encouraged Zimbabwe’s participation in various activities of the Promotion Association and the Africa-China Innovation Cooperation Centre. In his speech, the Ambassador pointed out Zimbabwe political stability, multi-currency investment, free and safe flow of funds as a welcoming measure for Chinese businesses to invest in Zimbabwe. An agreement of cooperation was reached in the meeting with both sides affirming the need to carry out practical cooperation in scientific and technological innovation, energy development, artificial intelligence technology, agriculture, international personnel exchange, infrastructure, mining and tourism.
Zimbabwe and China’s excellent relationship dates back to
Zimbabwe’s liberation struggle. This continued to flourish resulting in
significant levels of economic cooperation and trade. The frequent exchange of high level visits continues to grow, the latest being
the state visit to China by H.E. President ED Mnangagwa in April 2018 during the FOCAC summit in Beijing. Zimbabwe established diplomatic relations with China on the 18th of April 1980 , the same day Zimbabwe got its independence from British colonial rule.
During FOCAC the two Heads of State agreed to intensify cooperation in all spheres, particularly in the economic sector as they elevated their relations to the level of Comprehensive Strategic Partnership of Cooperation.
Pushing the mantra ‘Zimbabwe is Open for Business’, Ambassador Chedondo laid down the country’s vast areas of investment opportunities for both locals and foreigners: mining, manufacturing, agriculture, tourism, ICT and infrastructure development.
Speaking of infrastructure development, he said the provision for good infrastructure is a pre-requisite for achieving economic growth and development and also for enabling other sectors of the economy to function smoothly. Investment potential exists in the expansion and modernization of existing infrastructure as well as the construction of new infrastructure such as modern highways, power generation plants(hydro, thermal and solar), dams and water reticulation plants. Models such as Public Private Partnerships(PPPs),Build Operate and Transfer and Build Own Operate and Transfer(BOT &BOOT)are encouraged.
In a bid to create a win-win situation,
Zimbabwe is working closely with China in establishing Special Economic Zones. It is offering a variety of incentives in these zones,which include the following:
Zero-rated Corporate Income Tax for the first 5 years of operation and
corporate tax rate of 15% thereafter.
.Duty free importation of Capital equipment.
.Special Initial allowance of 50% of cost from year one and 25% in the
subsequent two years.
Some of the general Investment incentives include attractive tax incentives offered to investors undertaking investment in different sectors of the economy ranging from tax relief benefits to the granting of permanent residence permits.
There is also exemption from VAT for a variety of products that include agricultural
produce, raw materials for further processing, goods used in the production of agricultural, mining, industrial or manufactured products etc.
Zimbabwe is Open for Business.
The second republic led by President ED Mnangagwa is promising to leave no slab unturned to bring back glory days to the once bread basket of Africa with Vision 2030.