China Eximbank provides RMB 50 million loan for Anhui Agricultural Reclamation Project

Project narrative

In 2010, the Export-Import Bank of China provided a RMB 50 million loan to Zimbabwe–China Wanjin Agricultural Development Ltd. — a joint venture between Anhui State Farm Agribusiness Corporation (50% equity stake) and Zimbabwe’s Ministry of Defense (50% equity stake) — for the Anhui Agricultural Reclamation Project. The borrowing terms of the loan are unknown. As collateral for the loan, China Eximbank required either a property mortgage or a share of stock (for listed companies). This project sought to help under-utilized Zimbabwean farms improve levels of agricultural production. Farmers who were allocated land under the Government of Zimbabwe land reform program had insufficient capital/savings and skills to fully utilize the land. It was envisaged that the land would be more fully utilized through this project. The project reportedly resulted in the cultivation of 5,000 hectares of land during its first phase from December 2010-September 2012 and added another 50,000 hectare in October 2012. As of 2014, the joint venture had 50,000 hectare of land under cultivation with a workforce of more than 200 local employees (50 on contract) and 14 staff from China. On average, there are 1–2 Chinese managers and 3–5 local Zimbabwean managers on each farm. Ten staff members are from Zimbabwe’s Ministry of Defense, including the Vice-Manager (holding the rank of General). On October 16, 2012 the signing ceremony of the second phase of the development contract of the Anhui Agricultural Reclamation Zimbabwe Agricultural Joint Venture Project was held. The total planned investment for the project is expected to reach 1.5 billion yuan.