Zimbabwe's rare warning to wayward Chinese investors

Zimbabwe has cautioned Chinese investors against ignoring local labor and environmental regulations, as well as engaging in illegal financial practices, a rare position following prolonged public grievances.

Harare's criticism has now disrupted Zimbabwe's reputation as one of the African nations most open to investment from Beijing, frequently ignoring concerns when they arise.

Over the years, China has become the leading source of investment for Zimbabwe, following the country's two-decade-long isolation by the Western world.

Tafadzwa Muguti, a high-ranking official in President Emmerson Mnangagwa's administration, caught attendees off guard during a conference addressing Chinese investments in Harare this week when he urged investors from Asia to avoid "unlawful financial practices, environmental damage, and ignoring local regulations." "Most of you (Chinese) entrepreneurs aren't depositing money," Mr. Muguti stated at the China-Zimbabwe Business Forum on Wednesday. "You don't have bank accounts. You're storing cash under your mattresses, beneath the floor, or on the roof, but that's not how it works in China. If they all hold US dollars and Zimbabwe Gold currency in their homes, it could lead to our economy collapsing. There will be no liquidity in the market. Henceforth, we are advising you to deposit your funds in banks."Read: Why Zimbabwe’s ZiG is tankingSuch remarks are uncommon, as in 2024, the Zimbabwe Investment Development Agency documented 441 new investments from Chinese entities, contributing $2.75 billion, compared to 56 investments totaling $52.28 million in the prior year.

In 2015, Chinese President Xi Jinping referred to Zimbabwe as an "all-weather friend," a designation reserved for only 14 nations globally. China has made significant investments in Zimbabwe's energy, construction, agricultural, and mining industries.

China has also supported and implemented significant infrastructure initiatives, including power plants, airports, roads, and medical facilities, yet the increasing impact of the world's second-largest economy has sparked divided opinions in Zimbabwe.

For years, critics have expressed worries regarding Chinese investors' supposed neglect of local labor and environmental regulations, yet Harare has often stood by them.

The authorities have previously alleged that individuals who criticize the actions of Chinese investors are Western agents, aiming to interfere with investments from a dependable ally.

Zimbabwe has faced a currency crisis for almost 20 years, leading the nation to stop using its own currency in 2009 and instead adopt a mix of currencies, primarily the US dollar.

The nation has made six efforts to restore the Zimbabwe dollar, with the most recent initiative being the mineral-backed Zimbabwe Gold currency launched a year ago.

Many business professionals, particularly those from abroad, are reluctant to engage with local banks due to concerns about the nation's financial regulations and the difficulties involved in transferring their earnings out of Zimbabwe.

Zimbabwe's new currency fails, leading to the closure of numerous businesses and loss of hundreds of jobs. Mr. Muguti stated that Chinese investors were expected to deposit their profits in banks and utilize the central bank for sending money abroad. He mentioned that there are increasing concerns regarding Chinese nationals who are breaching Zimbabwe's immigration laws by entering the country on tourist visas for job purposes. "It is not difficult for Chinese nationals to obtain investment permits in Zimbabwe," Mr. Muguti said. "Why are you coming illegally? Let's adhere to the procedures. There is no need to pay bribes or remain hidden. Let's conduct affairs properly." The senior government official had harsh words for investors who violated the nation's environmental regulations and desecrated local graves in mining regions.

Chinese firms have been discovered extracting minerals within Zimbabwe's wildlife reserves, having acquired permits under ambiguous conditions, while other entities engage in mining along riverbeds, causing significant damage to water systems.

There are also multiple instances where Chinese mining companies have encountered disputes with local communities, accused of encroaching on ancestral lands and desecrating burial sites. “We are seeing that some Chinese companies are excavating our ancestors’ graves to extract granite or gold,” Mr Muguti stated. “Some even remove the bones and set them aside before starting the digging. That is the utmost disrespect towards any individual, regardless of your culture. Therefore, if we don't show patience towards each other, we won't be able to collaborate.” Steve Zhao, CEO of the China-Zimbabwe Exchange Centre, which represents the interests of Chinese nationals, mentioned that most of the issues stem from bureaucratic obstacles. “Chinese companies are encountering numerous difficulties,” Mr Zhao said. “After investing large sums, such as $5 million or $10 million, they face challenges. Some obtain certificates from the Zimbabwe Investment and Development Agency but struggle to acquire work permits. Equipment remains unused because it can't operate. They end up engaging in illegal activities, not out of choice, but due to system delays.” He added that some conflicts between Chinese nationals and locals arise from cultural differences and a lack of understanding of local labor laws. “There are many new people coming in,” Mr Zhao noted. “They aren’t familiar with the local culture. They don’t understand labor laws. That's why we organize workshops with banks and labor agents.” Zimbabwe and China have had long-standing relations that began during the southern African nation's struggle for independence in the 1970s, but the relationship strengthened in the early 2000s when the Asian country started offering significant aid and investment.

China transfers a new parliament to Zimbabwe as a "gift." Zimbabwe's former leader Robert Mugabe initiated a "Look East Policy" despite tense relations with the West, resulting in power plants, a new Parliament building, enhancement of major airports and sports facilities, along with other infrastructure developments.

In recent years, a continuous flow of Chinese individuals has been moving to Zimbabwe, attracted by the common use of the US dollar and the solid relationship between the two nations. However, there are increasing conflicts between the local population and Chinese citizens, stemming from claims of extensive labor rights violations and disputes over land, particularly in mining regions.

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Hong Kong's Fundraising Momentum to Stay Strong: Senior Bankers Predict Continued Growth

The sum collected through additional stock offerings amounts to US$31.4 billion in the first half of 2025, surpassing the total for all of 2024.

Energy in the Hong Kong fundraising market that followsinitial public offeringsInitial Public Offerings (IPOs) are expected to remain active, according to senior investment bankers, fueled by the strong capital requirements of companies on the mainland and international investors shifting their focus toward Chinese investments.

The sum collected through follow-on offerings—such as share placements and equity-related debt issues like convertible bonds following initial public offerings—amounted to US$31.4 billion in the first half of this year, as per data from Dealogic. The annual total for 2024 was US$27.9 billion, with the highest ever recorded being US$83.9 billion in 2021.

An increasing number of publicly traded companies, aiming to grow their operations and finance research and development (R&D), have contributed to an optimistic view of capital markets, according to bankers.

Are you curious about the most significant issues and developments happening globally? Find the solutions withSCMP Knowledge, our latest platform offering handpicked content including explainers, FAQs, analyses, and infographics, presented by our acclaimed team.

"The present surge in A-to-H IPOs presents a significant chance for most publicly traded companies to explore additional share offerings in order to boost their liquidity," said Jacky Leung, head of Hong Kong coverage atGoldman SachsThe A-to-H trend involves a number of mainland-listed companies selling H-shares in Hong Kong, including an electric vehicle (EV) battery manufacturer.Contemporary Amperex Technology, which concluded the biggest initial public offering of the year.

"As a bridge for Chinese technology, media, and telecommunications (TMT) and industrial firms to reach global capital, especially within a challenging geopolitical environment," was a major reason why companies aimed for additional share offerings, noted Leung, who also holds the position of co-chief operating officer for Goldman's TMT group in Asia, excluding Japan.

"The momentum in fundraising is anticipated to persist, fueled by substantial technology investments," stated Saurabh Dinakar, head of Asia-Pacific global capital markets at Morgan Stanley. The "positive" outlook is expected to stay for the next 12 months, even with possible market fluctuations that might affect investor confidence and delay the flow of deals, he noted.

"The breadth of the Hong Kong market proves effective during times of fluctuation," stated Johnson Chui, managing director and head of global issuer services at Hong Kong Exchanges and Clearing, at aconference last week, referencing the overall financial power of initial public offerings and subsequent equity issues.

"The enhanced market performance and increased trading volumes have resulted in a rise in follow-on offerings," stated Goldman's Leung. "Significant capital raising can only occur if the stock has adequate trading liquidity." Goldman ranked first on the Dealogic Asia-Pacific excluding Japan equity capital market league table based on bookrunning volume in the first half of the year and spearheaded Hong Kong's three largest follow-on deals during that time.

Companies that recently conducted significant share offerings included the world's biggest electric vehicle manufacturer.BYD and Xiaomi, which generated US$5.6 billion and US$5.5 billion respectively, in March to fund their international growth and research and development activities.

In June, Horizon Robotics, a mainland Chinese developer specializing in intelligent driving chips, secured approximately US$600 million. That same month, Innovent Biologics and a major Chinese logistics companySF Holdinginitiated stock offerings that generated approximately US$550 million and US$376 million, respectively.

"Currently, there are several large and high-quality Chinese companies listed in Hong Kong, including some that are dual-listed in the US and Hong Kong, which are increasingly securing funding in Hong Kong because of growing stock prices and valuations," mentioned Dinakar from Morgan Stanley. The bank oversaw several significant subsequent equity offerings, such as those for Horizon, Innovent, and Nio.

The city's key Hang Seng Index has risen over 22 percent this year, while the S&P 500 has increased by 6.5 percent.

Although share placements could potentially reduce stock prices because of discounts and increased supply, liquidity usually improved if there was continued investor interest, according to analysts. For instance, BYD's shares dropped 6.8 per cent on March 4 after the company announced a share placement, but they later rose by 9.2 per cent.

All major follow-on offerings this year, including BYD, Xiaomi, SF... have performed strongly, which is expected to boost investor interest," Leung stated. "We have observed a global capital reallocation driven by 'trade realignment' and ongoing international capital inflows.

"Global investors show widespread interest in investing in some of these top-tier companies within their industries," Dinakar stated, noting that foreign capital from pension funds, sovereign wealth funds, and hedge funds has come back to the Hong Kong market following three years of low engagement.

Furthermore, inward flows from mainland Chinese investors have strengthened Hong Kong's stock market.

"As liquidity rises, market depth expands, which further draws in attention and funding," Dinakar stated.

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This piece was first published in the South China Morning Post (www.scmp.com), a top news outlet covering China and Asia.

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Building the Investment Ecosystem: Strategic Funding Principles for the One Square Mile Series

– initial investors, private equity, and organizational collaborators

By Sammy CRABBE

No city succeeds just by constructing roads and building towers. Cities that succeed in the modern era create investment ecosystems – interconnected networks of initial investors, venture capital firms, institutional funding sources, accelerators, and innovation centers that foster ongoing development.

The single square mile should not only be built physically; it needs to be financially developed. It has to draw in investors who offer more than just funds, but also connections, knowledge, trustworthiness, and a dedication over time.

A technologically advanced city without a sophisticated financial system is like a castle constructed on sand. The objective of this funding stage is straightforward: establish an investment environment that is robust, purposeful, and mutually reinforcing.

The One Square Mile should not be viewed solely as a real estate project, but rather as a business opportunity. Investors need to understand that they are not purchasing structures – they are investing in Africa's upcoming digital economy center. Early investors must be supported, venture capital must be sought with intention, and institutional funding must be approached with strategy. If the proper financial groundwork is established, money will not just arrive gradually in the city – it will flood in.

Attracting initial key investors – Drivers of progress

Every significant advancement starts with forward-thinking early adopters. For the One Square Mile, obtaining initial key investors is essential not just for financial support but also for creating trust, drawing additional funding, and generating brand enthusiasm. These key players might consist of smart city developers, technology venture capital funds, national wealth funds, diaspora communities, and privately owned equity firms focused on impactful investments.

Systematic, short-term rewards should encourage initial involvement – such as favorable lease agreements, brand recognition opportunities, tax advantages, and entry into innovative programs. However, these incentives need to be in line with the city's principles, making sure that the investment promotes inclusivity, environmental responsibility, and creativity instead of altering the original intent. Choosing investors who offer not only capital but also compatible values and credibility is essential. When executed properly, early supporters transform into advocates and drivers of progress.

Securing investment from venture capitalists and startup financing

The Innovation Hub of One Square Mile, the fintech zone, the smart health system, and the green energy clusters will rely on ongoing startup activities – which, in turn, depend on venture capital. Bringing in VC needs to be a deliberate initiative. The One Square Mile Authority should organize VC Roundtables in locations such as Accra, London, Silicon Valley, and Dubai to highlight new possibilities.

A One Square Mile Innovation Fund might invest alongside local startups, reducing initial financial risks and establishing a flow of innovation. Policies such as favorable startup visas, easier registration processes, and tax benefits for technology investors can also draw interest. Collaborations with groups like AfricArena, VC4A, and ABAN will integrate the One Square Mile into Africa's venture landscape. The goal is to bring in funding that supports entrepreneurs, rather than merely providing financial backing.

Building strong collaborations with organizations for sustained reliability

Although initial investors create momentum, institutional participants – including pension funds, sovereign wealth funds, and DFIs – offer depth and consistency. These collaborators look for good governance, openness, and sustained profits. Infrastructure initiatives – such as fiber networks, water purification systems, transportation, and renewable energy sources – need to be designed to draw in these types of investors.

Long-term leases, annuity systems, and green bonds are likely to attract risk-averse organizations. Clear governance, verified financial reports, public-private partnership structures, and live performance tracking tools will help enhance confidence. Ghana's local pension funds should be utilized initially to establish a domestic example before involving foreign entities. When these institutions invest, they offer more than just funding—they also provide structure, credibility, and oversight.

Designing appropriate financial instruments

To accommodate various investor profiles, One Square Mile needs to create customized investment options. A Real Estate Investment Trust (REIT) would enable wide-scale involvement in the city's real estate growth without requiring direct property ownership. An Infrastructure Debt Fund might appeal to investors looking for steady, contract-based returns in the fixed-income sector.

A Social Impact Fund has the potential to attract funding for affordable housing, education, and local services, achieving a balance between social and financial results. Such funds need to be open about their operations, promoted on a global scale, and in line with worldwide standards to maintain investor trust and ongoing participation.

Branding the investment opportunity

In addition to organizing deals, the city needs to strongly promote itself as an attractive place for investment. This goes beyond sleek advertising – it involves genuine narrative-building: showcasing personal stories, achievements of startups, and key innovation accomplishments. The yearly One Square Mile Investment Summits should bring together investors, business owners, and international media to demonstrate progress.

Participation in international investor gatherings – including the Africa Investment Forum, Abu Dhabi Sustainability Week, and CES – will enhance exposure. By doing so, One Square Mile positions itself not only as an African innovation center, but also as a worldwide attraction for investment.

Conclusion – From a city layout to a capital hub

Successful cities draw more than just technology – they draw faith. By nurturing initial investors, obtaining venture capital, involving institutional collaborators, and creating inclusive investment structures, the One Square Mile can serve as a lure for international funding. Similar to Singapore, Dubai, or Austin, it can develop into a dynamic environment where finance, expertise, and creativity support each other. The One Square Mile should not only focus on being constructed – it should strive to be the most attractive square mile in Africa, providing not only profits, but also transformation and possibilities.

>>>the author is a PhD candidate focusing on blockchains and decentralized finance at the University of Bradford. he possesses an MBA in International Marketing and a postgraduate research certificate from the International University of Monaco. sammy was the inaugural president of the ghana business outsourcing association and pioneered africa's first data entry operation and ghana's first medical transcription company. he can be contacted throughsammyomanye@gmail.com

Provided by SyndiGate Media Inc.Syndigate.info).

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Shaping the Golden Future: E&P's Bold Step into Indigenous Mining

By\xa0Samuel Lartey(Prof)

sammylaatey@yahoo.com

\xa0On a sunny afternoon on July 5, 2025, key figures from the business world and government representatives came together for a significant event in Accra.

This is where Engineers & Planners (E&P), a Ghanaian-owned mining and construction company, finalized a significant US$100 million portion of a US$130 million Acquisition Facility Agreement with the ECOWAS Bank for Investment and Development (EBID).

This significant achievement represents Ghana's first major, entirely homegrown gold mining initiative at the Black Volta Gold Project. The remaining US$30 million, as promised by EBID President Dr. George Agyekum Donkor, is expected to be finalized by December 2025. Reflecting a sense of national pride and economic aspiration, this agreement sets the stage for a new chapter in Ghana's resource extraction industry.

Ghana's Recovery Plan: A Route to National Success

The Ghanaian government has consistently promoted a "Resource Efficiency and Self-reliance Transformation" (REST) initiative, which focuses on local control and enhancing value from natural resources. E&P's agreement with EBID is in perfect harmony with REST by:

1. Boosting Sovereign Wealth

By maintaining complete ownership of the Black Volta Gold Project, Ghana gains more authority over income streams, royalty gathering, and tax collection.

1. Encouraging Value-Addition

Combining mining operations with local processing enhances financial gains and strengthens technical expertise.

1. Strengthening Local Partnerships

This deal reflects trust in Ghanaian companies, encouraging international collaborators to form partnerships with less reliance on foreign organizations.

Benefits for Stakeholders: Corporate and Investor Perspectives

For E&P, this purchase speeds up its shift from contract mining to becoming a primary operator. The company now has access to funding, improved facilities, advanced machinery, and extensive knowledge, positioning it as a top gold producer.

EBID investors and local financiers also gain from this, as they secure favorable returns on a gold asset in the development phase with significant potential for increased value. With gold priced at approximately US$1,950 per ounce as of mid-2025, even a cautious annual production estimate of 150,000 ounces results in US$292.5 million in yearly gross revenue.

Reimagining the Upper West Region

The Upper West Region is poised to be the core of this initiative and its broader impacts:

1. Employment:

Numerous employment opportunities in the fields of mining, engineering, transportation, and services.

1. Infrastructure:

Construction of roads, electricity, water supply, and medical infrastructure.

1. Agriculture & SMEs:

Local agricultural producers, transportation companies, and hotel services discover new opportunities for income and expansion.

1. Skills Development:

E&P will provide training to hundreds of local workers in mining operations, safety protocols, and environmental management.

Boosting Local Content and Ghanaian Families

At the heart of this progress is E&P's dedication to local content, aligning with Ghana's 2021 Local Content and Local Participation Regulation. Initiatives include:

1. Procurement:

At least 70% of the materials obtained from local Ghanaian companies—covering mining supplies like chemicals, fuel, food services, and lodging.

1. Training:

Vocational and skill-based education for local young people, promoting the concept of "Ghana First" in developing human resources.

1. Dividends & Taxes:

Income will be directed into government funds, supporting education, healthcare, and social welfare systems.

Financial Consequences: A Driver of Enduring Development

1. Project Valuation:

Estimated at US\u202f$200–250 million.

1. Gold Production:

Estimated 150 to 200,000 ounces per year—equivalent to $300 to $390 million annually in revenue at current prices.

1. Government Receipts:

Projected annual tax, royalty, and export revenues ranging from US$40 to 60 million.

1. Economic Multiplier:

A contribution to GDP surpassing US$100 million each year, when taking into account downstream services, infrastructure, and consumption.

Honoring Azuma Resources: A Symbol of Ghanaian Leadership

A standout aspect of this agreement is Azuma Resources, an E&P division headed by energetic CEO Dr. Sarah Koomson. The forward-thinking leadership at the company conducted the technical evaluations, demonstrated confidence in the orebody, and organized the financing that gained EBID's support. This project serves as evidence that Ghanaian companies, not only multinational corporations, are capable of developing, funding, and carrying out top-tier mining initiatives.

Azuma's determination mirrors Ghana's increasing confidence in its resource extraction goals. This significant acquisition goes beyond a simple business success, serving as a strong statement for African autonomy and economic revival in the mining sector.

Conclusion

The US $130 million purchase of the Black Volta Gold Project goes beyond a simple business deal; it represents a courageous statement. Ghana's mining future is driven internally, sustainable, and focused on generating value. With the REST agenda in place, all involved parties united, and regional advantages more evident than ever, this achievement could spark a change in tradition, moving from foreign resource extraction to wealth generation by Ghanaians.

Through the integration of bold investment, community emphasis, and forward-thinking leadership, E&P along with its creative subsidiary Azuma Resources has not only transformed Ghana's mining story but also established a benchmark for locally-led progress throughout Africa.

Provided by SyndiGate Media Inc.Syndigate.info).

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