“The China Export and Import Bank has withheld funds for the
Kariba South Hydro Power expansion until the government clears its previous
loan obligations,” reported Bulawayo 24 Staff Reporter.
“The decision is likely to delay completion of the mega electricity project expected to generate an additional 300 megawatts.”
“The decision is likely to delay completion of the mega electricity project expected to generate an additional 300 megawatts.”
When Mugabe announced the $4 billion project finance deal
following his begging mission to China in August 2014, he gave the story as
positive a spin as he could. This was the first bit of money into his ZimAsset
begging bowl and he wanted celebrate after over a year of being mocked by the
empty bowl. Now the truth of that $4 billion from the Chinese is coming out.
First of all what Mugabe had been looking for out of the $27
billion ZimAsset plan was hard cash in the form of budgetary support. The
Chinese had told Mugabe to his face that they would never consider it because
he “was a bad debtor”.
Second the Chinese made sure it was understood the $4 billion
project finance was subject to satisfactory feasibility studies and now it
turns out that was not the only condition; Zimbabwe has to clear all its
outstanding debts too!
Pay all its outstanding debts with China! Pay with what;
spit! Here is a regime that is failing to pay its civil servants; every month
Finance Minister Chinamasa has to borrow money, shift money from one account to
another, read the political wind careful to decide which group of civil servants
are least likely to strike if he fails to pay them, etc. The only civil servant
whose expenses have been paid on time are Mugabe’s expenses, he is the only who
seems to think the country is enjoying an economic boom instead of the economic
meltdown.
The Chinese must have known that $4 billion would never be
drawn out because Zimbabwe will never repay its outstanding debt.
A month after celebrating the Chinese $4 billion projects
deal Mugabe announce a Platinum Mining deal with Russia worth $3 to 4 billion.
The Russian economy has not been doing well ever since and so the start of that
project is in doubt.
If Mugabe thought the signing of Chinese and Russian deals
would open the flood gates of other nations wanting in on the act; he was
wrong. No one has done so. A number of Europeans, notably the British, the
French and Germanys have all sent high powered trade delegations and they all
expressed interest in investing in Zimbabwe but – the all too familiar word in
Zimbabwe – not until the country’s parasitic indigenisation law has been
scrapped and there is rule of law.
So Mugabe had made a big song and dance over the only two
cheques he had managed to get for his ZimAsset economic recovery plan and now
it turns out that the Chinese cheque was not even signed – otherwise Zimbabwe
would be servicing that loan when it was clear it will never draw on it. The
Russian cheque is possibly post-dated and unsigned too! In short Mugabe really
has nothing in the ZimAsset begging bowl!
In the economy, Mugabe has met the toughest advisory of his
35 years in office. Mugabe was able to cheat or bamboozle the likes of
Tsvangirai and Mrs Mujuru with relative ease. He was sure he would rig economic
recovery with his ZimAsset plan by throwing the $27 billion at the gross mismanagement
and rampant corruption and thus achieve the recovery without having to deal
with these cancers. It is clear that, other than the two “for display purposes
only” cheques Mugabe has failed to get any funding for his ZimAsset plan.
ZimAsset plan is dead in the waste. The economic meltdown is squeezing harder
than ever!