China Accused of Fleecing Zimbabwe’s Children

www.ozy.com [OZY]() Your World. Bold & Bright [Daily Dose]( Sponsored by [Cariuma]( The newsletter to fuel — and thrill — your mind. Read for deep dives into the unmissable ideas and topics shaping our world. Sep 02, 2022 Business Round-up New revelations are raising questions about Chinese loans to African nations, and whether such borrowing is tantamount to “looting from our children.” – with reporting by Tatira Zwinoira from Harare, Zimbabwe [5 STARS FOR COMFORT]( [Cariuma]( No one likes breaking in a new pair of shoes. With [Cariuma’s]( broken-in-out-of-the-box feel, you’ll be sure to recommend them to friends! Planning on walking around town this summer? Make sure you check out their vast range of colors, prints, and exciting limited edition collabs - they have a style for every look! Excited to try them? Get [15% OFF](at checkout with your personal code, OZYSEPT. This special offer is just for OZY readers. [LET’S GO!]( Africa Revelations about Chinese loan stir uproar Zimbabwe’s Finance and Economic Development Minister Mthuli Ncube [revealed]( last week that, in 2006, mineral-rich Zimbabwe put up platinum deposits valued at $28 billion as collateral for a $200 million loan from China to buy Chinese farm equipment. Such imbalanced terms are raising questions about corruption and whether China is engaged in predatory lending. A local watchdog group called the Zimbabwe Coalition on Debt and Development, or “Zimcodd,” has [demanded]( that detailed information about all government loans be made public. According to [research]( by the Johns Hopkins University School of Advanced International Studies, China rarely claims the assets put up as collateral in such loans. Yet the lack of transparency is again raising suspicions about Chinese practices. “At this point, a full audit should be required, one in which the final destination of the funds loaned by the Chinese to Zimbabwe are revealed,” Johns Hopkins professor of applied economics Steve H. Hanke told OZY by email. “My guess is that most of the $200 million has found its way into the pockets of people or enterprises closely associated with ZANU-PF,” said Hanke, referencing the ruling political party Zimbabwe African National Union-Patriotic Front. Zimcodd has also called for an independent audit, noting that loans such as this one, which mortgaged the nation’s valuable platinum deposits, result in citizens being “trapped in a vicious circle of poverty.” Debt repayment effectively limits the government’s ability to fund social programs, even as an estimated [40%]( of Zimbabweans live in poverty, according to the World Bank. “It's looting from the future, it's looting from tomorrow, it's looting from our children,” said human rights activist Dzikamai Bere during a Zimcodd Twitter Space held on Aug. 26 to discuss Ncube’s report. “So, it's very important that we create a community to push for accountability.” Chinese Ambassador to Zimbabwe Guo Shaochun promptly denied allegations that China was intentionally entrapping developing nations, [calling it a Western fabrication]( intended to deflect responsibility and blame. Zimbabwe's government currently owes China $172 million on the 2006 farm equipment loan, and about $2.6 billion in total, according to parliamentary records. [Walking On Sunshine]( [Cariuma]( Inspired by sunny, summer days, and lounging by the beach with a drink in hand, the [OCA Low Yellow]( is the perfect summertime sneaker. Crafted with robust canvas, this fashion-forward sneaker meets functionality, style, comfort, and fit. And with a fully-stitched lightweight outsole, it’s going to last you longer than summer (hello, quality over quantity)! OZY Exclusive: Get 15% OFF with code [OZYSEPT]( at checkout. This special offer is just for OZY readers. [SHOP NOW]( Americas Ohio slated as home for EV battery manufacturing Japanese conglomerate car manufacturer Honda Motor Co. Ltd and the South Korean battery manufacturer LG Energy Solution have [announced]( plans to build a $4.4 billion lithium-ion battery manufacturing plant in Ohio for Honda and Acura electric vehicles (EVs). This news came two weeks after President Joe Biden signed into law the Inflation Reduction Act which, among other things, provides incentives to EV manufacturers and buyers. The deal is part of Honda’s “longstanding commitment to build products close to the customer,” said Honda’s president and CEO Toshihiro Mibe. (Source: [The Wall Street Journal]() Goldman Sachs: ‘Buy commodities now’ In a note titled, “Buy commodities now, worry about the recession later,” investment banking firm Goldman Sachs advised investors to increase their positions in commodities. This advice followed a decline in stock markets on Friday after Federal Reserve Chairman Jerome Powell said there would be continued interest rate hikes until inflation is tamed. Advice published by Goldman Sachs noted that commodities are an attractive asset class, as demand remains above supply. Indeed, many regions around the world are suffering from a limited supply of critical commodities, including food and fuel. Increased purchases of commodity assets by wealthy investors, such as those advised by Goldman Sachs, has the potential to raise global prices. (Sources: [Bloomberg](, [The Wall Street Journal]() Asia Pakistan secures foreign loans to prevent financial collapse In an effort to prevent a Sri Lanka-style collapse, the Pakistani government has secured $37 billion in foreign investments and loans, provided in part by the International Monetary Fund. Pakistan faces economic turmoil sparked by the Russia-Ukraine war, which affected the South Asian country’s supply chain and led to high fuel and food prices. Additionally, the country is grappling with billions of dollars of damages from flooding caused by heavier-than-usual rains during the region’s monsoon season. Referring to his country’s tenuous financial position, Pakistani Finance Minister Miftah Ismail said in an interview, “our viability depends on the IMF program.” (Source: [The Wall Street Journal]() WATCH GARY CHAMBERS on [The Carlos Watson Show](! Europe Bayer announces drug to reduce diabetes, kidney disease mortality The German multinational pharmaceutical and biotechnology firm Bayer says its drug Kerendia can greatly reduce cardiac deaths associated with late-stage Type 2 diabetes and chronic kidney disease. According to Bloomberg, research on Kerendia presented at the European Society of Cardiology has the potential to boost the drug into “blockbuster” status. Dr. Christian Rommel, Bayer’s head of research and development, said the new analysis demonstrates the drug’s potential “to reduce the risk of mortality amongst this vulnerable patient population, and keep them healthier for longer.” (Source: [Bloomberg]() Community Corner Are Chinese loans helping or hurting countries like Zimbabwe? What’s the alternative? [SHARE YOUR THOUGHTS]( ABOUT OZY OZY is a diverse, global and forward-looking media and entertainment company focused on “the New and the Next.” OZY creates space for fresh perspectives, and offers new takes on everything from news and culture to technology, business, learning and entertainment. [www.ozy.com]( / #OZY Curiosity. Enthusiasm. Action. That’s OZY! [TV]( | [PODCASTS]( | [NEWS]( | [FESTIVALS]( A Modern Media Company OZY Media, 800 West El Camino Mountain View, California 94040 This email was sent to {EMAIL} [Manage Subscriptions]( | [Privacy Policy]( | [Read Online](