China has initiated a $3.6 billion project to build the Palm River Energy Metallurgical Industrial Park in Zimbabwe, positioning the country as a major steel producer in southern Africa. The project, led by a Chinese firm, will exploit local mineral resources and strengthen China-Zimbabwe relations, according to experts.
China is actively investing in Zimbabwe through a substantial project designed to establish a major steel hub and industrial base in the region. The Palm River Energy Metallurgical Industrial Park, led by the Chinese firm Xinganglian (Shanxi) Holding Group, will utilize Zimbabwe’s rich resources, including coal and iron ore, to become a key player in steel production. This ambitious $3.6 billion initiative, which spans over 5,163 hectares, aims to create an integrated area for mining, energy production, and heavy manufacturing.
Experts believe that this investment marks China’s strategic decision to identify Zimbabwe as its principal industrialization zone for steel and chrome in Africa. Lauren Johnston, a specialist in China-Africa relations and associate professor at the University of Sydney, notes that Zimbabwe’s wealth in human resources and natural assets aligns perfectly with China’s plans. This initiative not only enhances Zimbabwe’s industrial capacity but also strengthens the bilateral ties between Beijing and Harare.
In summary, China’s investment in Zimbabwe through the Palm River Energy Metallurgical Industrial Park illustrates its broader strategy to establish a significant presence in southern Africa. By capitalizing on Zimbabwe’s abundant resources and skilled workforce, China is positioning the nation as a vital contributor to steel production on the continent. This development reflects a deeper commitment to forging strong economic alliances in the region.
Original Source: www.scmp.com
