THE recent visit by the Chinese National Development and Reform Commission (NDRC) to spearhead numerous infrastructure development projects will, among other things, create massive job opportunities in the country.
This is where Zimbabwe is headed for in the next few months.
The projects include dualisation of major roads, rehabilitation of the railway network and water and energy projects.
According to the projects documents, struggling parastatals such as Cold Storage Company (CSC) and National Railways of Zimbabwe (NRZ) should be back on their feet as soon as possible.
All this would be the fruition of the Sino-Zim multi-million infrastructure deals signed by President Robert Mugabe and the Chinese President Xi Jinping in August last year.
China has committed to implement the first phase of the infrastructure development projects by year end.
Many Zimbabweans are sceptical as over 18 000 workers have in the past month lost their jobs following a Supreme Court ruling of three months’ notice of termination of contract.
However, it is not all gloomy as it sounds.
In fact, the economy is on the rebound and better things are coming.
Analysts contend that the job cuts were necessary.
Most companies were bloated and the bigger chunk of the money they were realising went towards salaries and wages.
There was little or no production at all in some companies.
The country has been struggling to attract Foreign Direct Investment (FDI) because according to investors, the remuneration costs were very high.
About 84 percent of Government’s US$4, 2 billion budget goes towards civil service salaries.
The question is which investor wants to invest in such an unsustainable economy?
Last week the Chinese government through the National Development and Reform Commission (NDRC) committed to bankroll the country’s major infrastructure projects.
One of the projects includes the rehabilitation of railway network from Bulawayo through Gweru and Harare to Mutare on the border with Mozambique.
The rehabilitation will also see works being done on the railway line to Victoria Falls passing through Hwange from Harare where it will link with the Copper Belt and eventually Angola.
And the Gweru-Chiculacula railway line will be refurbished while the National Railways of Zimbabwe (NRZ) will be resuscitated.
The restoration of NRZ will help cut the cost of bulk freight which is pushing up the cost of production.
The parastatal, operating at eight percent capacity utilisation, is currently transporting six million tonnes of goods per annum out of 80 million tonnes the system was designed for.
Currently, only 13 locomotives are functional against an average of 78 and 3 427 wagons and 130 coaches are operational against a requirement of 4 201 wagons and 144 coaches.
The whole electrified section between Harare and Dabuka has been vandalised, rendering electrical locomotives useless.
The poor performance of the rail company has resulted in the massive haemorrhage of the country’s various economic sectors such as agriculture, manufacturing, mining and energy among others.
These sectors have since transferred their bulk business to haulage trucks that have in turn destroyed the country’s road network.
Over 30 tonne haulage trucks take to the roads every day.
In the coming next few months, Zimbabweans will also witness the dualisation of highways namely the Harare-Nyamapanda, Harare-Beitbridge and Harare Chirundu.
The country’s roads have turned to death traps with people perishing in road accidents almost every day.
And Zimbabwe is strategically positioned to provide a gateway to markets within the Southern African Development Community (SADC) region and beyond.
The revival of CSC is also on the cards.
This would translate to ready markets for cattle farmers as well as restoration of the cattle finance scheme that would provide farmers with long-term low interest finances.
The CSC used to play a leading role in the processing and marketing of Zimbabwe’s beef and was once the backbone of agriculture.
Export sales were more than 25 000 tonnes with the European Union (EU) importing 9 000 tonnes, Angola 12 000 tonnes, Indian Oceans 3 000 tonnes and Switzerland 1 500 tonnes.
The viability of the parastatal took a severe beating when the EU suspended beef imports from the country in 2001 following the Land Reform Programme.
At its peak, the company would earn over US$150 million per year. However, the cattle population has declined from seven million in 2000 to the current 5, 2 million and beef slaughter have deteriorated to 200 000 from 605 000 at the turn of the millennium.
Work has also begun on the power generation project for Kariba South expansion.
The China Exim bank bankrolled US$320 million for the project which will add 300MW to the national grid.
Other long term deals include the US$2 billion integrated Gwayi energy water projects that will add 600MW into the national grid while the US$1, 2 billion Hwange thermal unit seven and eight project will bring an additional 600MW to the pool.
Another power generation deal is the commissioning of feasibility studies into coal exploration and a thermal power station in Sibungwe Binga, another 600MW coming into the national grid.
Upon completion, the projects will witness an increase in the electricity production and an improved economy.
Improved and increased power generation is one of the major objectives of the economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-ASSET).
When there is enough and plenty of electricity in the country, there is no doubt that the industrial sector will revive.
Zimbabwe will be able to export surplus power in the next three to four years following these deals.
On the agriculture side, the Chinese government also agreed to support irrigation projects in what is expected to open up 20 000 hectares of small-scale farmers irrigated land under the Osbourne Dam, Kunzvi Dam and Musami irrigation scheme.
The Chinese deals will usher in a new era of economic prosperity in Zimbabwe.