China’s Export-Import Bank to lend $1.2bn for upgrade of Zimbabwe’s largest power plant

By bne IntelliNews December 2, 2015

The Export-Import Bank of China will lend $1.2bn for the capacity expansion of Zimbabwe’s biggest thermal power plant Hwange to be carried out by China’s Sinohydro Corp., NewsDay Zimbabwe reported on December 2.

The deal, along with 11 other important agreements, was signed on December 1 as part of the landmark visit of China’s President Xi Jinping together with a delegation of 200 people, to the African country. This is the first visit by a Chinese leader to Zimbabwe since 1996.

Zimbabwe’s President Robert Mugabe is seeking to attract more investments from China to prop up the country’s ailing economy, after having been sanctioned by Europe and the US for more than a decade now. The US, along with many other Western countries, imposed sanctions on Zimbabwe's leadership in 2002 following reports of election rigging and human rights abuses. The government angered also donors with a series of controversial moves, including the election rigging and the confiscation of commercial farms owned by whites.

State-owned Hwange generates between 380MW and 400MW of electricity against its installed capacity of 920MW. Sinohydro will upgrade two generators at the plant, providing for an additional 600MW to flow into the national grid that should alleviate electricity shrtages. Zimbabwe has an installed capacity of 2,200MW, but produces an average of 1,200MW, hurting mines and businesses and causing power cuts lasting up to 18 hours a day, NewsDay observes.

China’s Exim bank will also provide a loan to state-owned telecoms firm TelOne to roll out fibre optic cables, The Herald reported.

Xi is set to visit South Africa on December 2, where he will meet President Jacob Zuma and co-chair the Forum on China-Africa Cooperation in Johannesburg.

Related Articles

AB InBev sells 54.5% stake in African Coke bottling business for $3.15bn

Anheuser-Busch InBev will sell a 54.5% stake in Africa's largest Coke bottler to Coca-Cola Company for $3.15bn, the two companies said in a joint statement on December 21. The deal is expected to ... more

IMF slashes South Africa’s 2016 growth outlook to 0.7%

The International Monetary Fund (IMF) has lowered sharply its 2016 GDP growth forecast for South Africa to just 0.7% from 1.3% anticipated in October, its World Economic Outlook (WEO) update released ... more

MTN Nigerian fine raised back to $5.2bn, court refuses to freeze company bank accounts

The record fine, imposed on South Africa-based telecoms group MTN by the Nigerian Communications Commission (NCC) has been raised back to $5.2bn, publications in local media revealed. The ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss