Chinese companies received investment licenses in Zimbabwe in the third quarter, with $2.79 billion expected to flow into the country, mainly in the mining and energy sectors, as the Zimbabwean government works to develop some of Africa's largest lithium mines and end power shortages.
The investment plan is a 10-fold increase from the $271 million committed in the same period last year and dwarfs its closest competitor, the United Arab Emirates, which received a $498.5 million investment permit. The total value of the investment licenses issued was $3.41 billion.
The Zimbabwe Development Agency, the state-owned body charged with securing investment, said in a report on Wednesday that Chinese investment applications were "the largest in terms of both volume and investment value, with mining being their preferred sector, followed by manufacturing". China accounted for more than two-thirds of the 180 applications.
Chinese companies have been buying lithium ore, a key component in batteries used in electric cars. They are also involved in the renovation and construction of power plants in the country. Of the planned investments, $2.8 billion will go to energy projects and $411 million will go to mining.
One Chinese-backed project is a planned $2.3 billion integrated energy and mining project that will process minerals in Matinga, and the other is a 500 megawatt solar project
The mining ministry said on Wednesday that the country earned $209 million from lithium exports in the nine months to September.
