Xinganglian (Shanxi) Holding Group is investing US$3.6 billion in Zimbabwe to develop the Palm River Energy Metallurgical Industrial Park. This project aims to utilize Zimbabwe’s natural resources to establish a major steel production hub in Southern Africa, reflecting China’s increasing reliance on Zimbabwe amidst declines in neighboring economies. Experts recognize Zimbabwe’s significant potential due to its resources and workforce.
In Beitbridge, Zimbabwe, a significant industrial park project is underway, spearheaded by Xinganglian (Shanxi) Holding Group. This US$3.6 billion investment, known as the Palm River Energy Metallurgical Industrial Park, aims to harness Zimbabwe’s rich natural resources, particularly coal, chrome, and iron ore, to establish the nation as a prominent steel producer. The industrial park will span 5,163 hectares within a special economic zone and encompass mining, power generation, coke production, and steel manufacturing, with a development timeline extending over twelve years in five phases.
China’s growing partnership with Zimbabwe marks the latter as a central resource hub in Southern Africa. Amid declines in similar industries in neighboring South Africa, Chinese firms are increasingly investing in Zimbabwean mineral processing operations. The recent influx of investments suggests that China considers Zimbabwe a priority for its steel and chrome industrialization efforts on the continent.
Lauren Johnston, a specialist in China-Africa relations, emphasized the strategic value of Zimbabwe, noting, “This makes sense. Zimbabwe has a rich human capital and natural resource endowment.” This partnership aligns with China’s broader objectives in Southern Africa, as it seeks to expand its influence and secure essential resources for its industries.
The establishment of the Palm River Energy Metallurgical Industrial Park exemplifies China’s strategic investment in Zimbabwe, aimed at developing a significant steel production industry. This alliance not only underscores Zimbabwe’s pivotal role as a resource-rich nation but also demonstrates China’s intent to strengthen its foothold in Southern Africa, particularly as other regional economies face industrial challenges. The investment is anticipated to foster economic growth and job creation in the region.
Original Source: www.zawya.com
