Chinese companies were awarded licenses in the third quarter that could lead to US$2.79 billion of investment in Zimbabwe, reported China Economic Review citing a Bloomberg report.
The bigger chunk of the investment is in the mining and energy sectors as the southern African country pushes to develop some of Africa’s biggest lithium deposits and to end power cuts.
The planned investment is a tenfold increase on the US$271 million pledged in the same period last year.
According to a report by the Zimbabwe Development Agency, the state-owned unit responsible for securing investment, released on Wednesday, Chinese applications “were the most by number and investment value with mining being their most preferred sector followed by the manufacturing sector.
China accounted for more than two-thirds of the 180 applications.
Chinese companies have been buying lithium mines, which supply a key component for the batteries used in electric vehicles.
According to ZimLive, Chinese firms, including Zhejiang Huayou Cobalt (603799.SS), Sinomine Resource Group (002738.SZ), Chengxin Lithium Group (002240.SZ), Yahua Group (002497.SZ) and Canmax Technologies (300390.SZ).
Chinese firm Sinohydro Corporation undertook the expansion of Hwange Thermal Power Station’s units 7 and 8 which added two generators with a combined capacity of 600 megawatts.
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