One of China’s largest companies, China Communications Construction Company (CCCC), is to set up shop in Zimbabwe after the firm was impressed by offers presented during President Emmerson Mnangagwa’s official state visit to the Asian Giant last week.
The company is the largest infrastructure government-owned company in China and is involved in the design and construction of transportation infrastructure, dredging and heavy machinery manufacturing business.
According to Forbes 2017, CCCC’s market capitalisation and revenue stood at close to US$40 billion and US$64 billion respectively, while it employs about 120 000 workers.
CCCC is also the largest China infrastructure government-owned enterprise company and is listed on the Hong Kong Stock Exchange while some of its investors include China’s richest billionaires.
In an interview with The Southern Times, Finance and Economic Planning Minister Patrick Chinamasa said CCCC had agreed to set up a permanent office in Zimbabwe, while the company will also be involved in construction of a dam project.
Chinamasa said: “We will have several financing models that we are pursuing with Chinese companies for projects on build operate transfer models. One such that will take off now is the Kunzvi Dam. We have two top Chinese companies, Sino Hydro and China Communication Construction Company (CCCC), entered which we have entered into an agreement with.
“Sino Hydro is already operating in the country but CCCC is very important, it is one of the largest companies in China and it is now coming to Zimbabwe. The company is going to raise own resources, build a dam, do a convergence of the water and build a water treatment plant as well as attend to the distribution of the dam through installation of smart prepaid meters.”
Chinamasa said the project financing nature of the investment would ensure that CCCC gets profitable returns from its investment.
“The problem we have as far as raising cash is not having a reliable cash flow system but CCCC is coming up with a system that will make sure people pay for the water that gets into their houses. This will ensure that the company will recoup its investment and everyone will be satisfied.”
Besides the Kunzvi Dam project, CCCC is expected to venture into other infrastructure projects.
CCCC was one of the companies that President Mnangagwa’s government engaged during his historic visit to China.
One of the highlights of the visits saw China’s President Xi Jinping giving the go-ahead to Chinese banks to resume funding for Zimbabwe after financial institutions in the world’s second biggest economy had stopped bankrolling some projects owing to concerns with the old administration led by former President Robert Mugabe.
China also agreed not to use the past to affect negotiations to fund new projects in Zimbabwe, giving a new lease of life to new ventures and projects that had stalled.
The visit also saw the two countries elevating cooperation to Comprehensive Strategic Partnerships.