It seems the Chinese investment juggernaut is not going to end anytime soon in Zimbabwe. Recent buzz about the East Asian country’s being awarded licenses estimated at $2.8 billion of investment in lithium and energy, is a show of confidence in the mining industry of the southern African country.
Mineral resources rich Zimbabwe considers lithium and energy as a solution to the current persistent power outages.
The Chinese had initially planned to invest $271 million but have since upped the investment to the current amount of $2, 8 billion, about ten times more than the previous budget.
The investment increase indicates the unfettered appetite by international investors who have found a ready and lucrative extractive lithium market on the strength of deep-rooted relationships between China and Zimbabwe.
The Chinese’s uplifting investment intervention comes as the Zimbabwean government is banking on riding on the lithium boom to turn around the fortunes of the country. The prospects look bright for the country that is currently ranked the sixth largest lithium producer in Africa.
According to some media reports, the Chinese have been the most active in applying for investment deals in Zimbabwe. It is reported that more than two-thirds of the almost 200 investment applications were from Chinese investors.
Aside from the Chinese have been on a buying spree for lithium mines, they are also participating in the renewal and construction of power plants around Zimbabwe.
Of the planned investment, $2.8 billion is slated for energy projects and $411 million for mining.
Chinese firm Sinohydro Corporation were in charge of the expansion of Hwange Thermal Power Station’s units 7 and 8. The two units have a combined capacity of 600 megawatts.
Text by Martin Chemhere