By A Correspondent-The feared Central Intelligence Organisation (CIO) has turned its focus on Chinese-owned businesses amid growing concerns over illicit financial activities, environmental destruction, and widespread disregard for local laws.
The crackdown signals President Emmerson Mnangagwa’s mounting frustration with Chinese investors—who once enjoyed VIP treatment under Zimbabwe’s “Look East” policy launched at the turn of the millennium.
Tafadzwa Muguti, the Secretary for Presidential Affairs in the Office of the President and Cabinet, issued a stern warning to Chinese investors during a China-Zimbabwe Business Cooperation Roundtable held in Harare this week.
“The majority of you business people are not banking money. You do not have bank accounts. You are keeping money under your mattresses, under the floor, or in the roof. But in China, you don’t do that,” Muguti said. “If everyone hoards US dollars and ZiG [Zimbabwe Gold currency], the economy collapses. There will be no liquidity in the market. So, starting now, we are directing you to bank your money.”
Chinese firms stand accused of operating outside the formal banking system, externalising millions in undeclared earnings, violating labour laws, and engaging in environmentally harmful practices—particularly in the mining sector.
Authorities are also alarmed by growing reports of corruption, permit abuse, and cultural insensitivity, especially involving companies that fail to consult communities when conducting operations in sacred areas.
Muguti condemned the practice of entering Zimbabwe as tourists to conduct business illegally. “It’s not difficult for Chinese nationals to get investment permits. Why are you coming illegally? Let’s follow the protocols. No need to bribe anyone. Let’s do things properly.”
Going forward, Chinese nationals applying for permits or visas will be required to submit a letter of acknowledgment from the Chinese ambassador to ensure the government is fully aware of who is operating in the country.
Muguti also criticised Chinese companies for desecrating burial grounds in pursuit of minerals such as granite and gold.
“We are seeing companies digging up our ancestors’ graves and putting bones aside to start mining. That’s the greatest form of disrespect—even in your culture.”
He urged Chinese nationals to integrate with local communities. “Take your children to our schools. Mix with Zimbabweans. Don’t go and create a Chinese camp. How are you going to understand Zimbabweans if you isolate yourselves?”
He reminded investors of Mnangagwa’s directive that all minerals must be processed locally before export.
“Zimbabwe wants to manufacture lithium batteries here. Let’s work together to build local industries. From here, you can export to the DRC, Malawi, South Africa, and beyond,” Muguti said.
In response, Steve Ke Zhao, CEO of the China-Zimbabwe Exchange Centre, acknowledged the government’s concerns but blamed bureaucratic delays for driving some Chinese investors into informal operations.
“Some Chinese companies invest US$5 million or US$10 million, only to face challenges—such as delays in obtaining work permits, or having machinery stuck at ports,” Zhao said. “They’re forced into non-compliance not because they want to break the law, but because the system fails them.”
Zhao added that most Chinese investors mean well and are committed to Zimbabwe’s development, but lack of local knowledge and complex procedures have created confusion and tension.
“There are many newcomers who don’t understand the culture or labour laws. That’s why we’re organising workshops with banks and labour agents to help them comply.”