A Chinese company is leading the development of the Palm River Energy Metallurgical Industrial Park in Zimbabwe, a US$3.6 billion initiative aiming to boost steel production. This project highlights China’s strategic focus on Zimbabwe’s resources and human capital, positioning the country as a key player in southern Africa’s industrialization. Experts suggest this marks the beginning of China’s larger ambitions in the region.
In Beitbridge, Zimbabwe, a significant industrial development is underway, illustrated by the Palm River Energy Metallurgical Industrial Park. This project, estimated at US$3.6 billion, is spearheaded by the Xinganglian (Shanxi) Holding Group of China and aims to leverage Zimbabwe’s rich resources, such as coal, iron ore, and chrome. The park will encompass over 5,000 hectares and will position Zimbabwe as a leading steel manufacturer in southern Africa through various phases of construction over 12 years.
Experts suggest that China is strategically investing in Zimbabwe due to its abundant natural resources and skilled labor force. Lauren Johnston, a specialist in China-Africa relations, notes, “This makes sense. Zimbabwe has a rich human capital and natural resource endowment.” This initiative marks China’s commitment to establishing Zimbabwe as its first steel and chrome industrial hub on the continent, signaling broader ambitions throughout southern Africa.
The establishment of the Palm River Energy Metallurgical Industrial Park in Zimbabwe underscores China’s strategic investment initiatives in southern Africa. By transforming Zimbabwe into a vital steel production center, China aims to capitalize on the region’s rich natural resources and labor. This venture not only promotes industrial growth but also indicates China’s exit strategy for enhanced influence in southern Africa.
Original Source: www.scmp.com
