China’s Strategic Investment in Zimbabwe: Plans for Southern Africa’s Steel Hub

China is investing US$3.6 billion in a new industrial park in Zimbabwe, aiming to establish the country as a major steel hub in southern Africa. The project, led by Xinganglian (Shanxi) Holding Group, will exploit Zimbabwe’s rich natural resources and is expected to unfold over 12 years through multiple phases. Experts believe this development not only addresses local resource utilization but also enhances China’s strategic influence in the region.

In Beitbridge, a border town in southern Zimbabwe, a significant industrial park is under development, poised to produce electricity, chromium-based materials, and steel products. China’s Xinganglian (Shanxi) Holding Group leads the ambitious US$3.6 billion project called the Palm River Energy Metallurgical Industrial Park, designed to tap into Zimbabwe’s abundant resources, including coal, iron ore, and chrome. This initiative aims to establish Zimbabwe as a key player in the steel production sector.

Covering 5,163 hectares within a designated special economic zone, the project involves various phases, spanning 12 years and encompassing mining, power generation, coke production, and steel manufacturing. Experts believe that China has strategically positioned Zimbabwe as its first steel and chrome industrialization hub in Africa. Lauren Johnston, a specialist in China-Africa relations from the University of Sydney’s China Studies Centre, supports this claim, highlighting Zimbabwe’s rich human resources and natural asset endowment as factors that make it an attractive investment destination for China.

In conclusion, the development of the Palm River Energy Metallurgical Industrial Park illustrates China’s commitment to utilizing Zimbabwe’s substantial natural resources and labor capabilities to establish a dominant steel production base in southern Africa. This project reflects broader strategic objectives that extend beyond immediate economic gains, underscoring China’s increasing influence in the region. Furthermore, as the industrial park develops, it may serve as a foundational element for China’s long-term plans in southern Africa, reinforcing its geopolitical presence and economic leadership.

Original Source: www.scmp.com