eBusiness Weekly
Africa Moyo
The firm that has been engaged by Zimbabwe to build the $2 billion – rated Beitbridge – Harare and Harare – Chirundu highways, is a company of means that has done several construction projects across the globe.
Since its launch in 1992, Anhui Foreign Economic Construction Group (AFECC) has become a massive, multi-operational enterprise with interests in international project contracting, real estate development, overseas mineral resources development and jewelry processing.
AFECC also operates supermarkets, building material processing and star hotel chains, among others.
Its profile puts to rest any doubts that some sceptical citizens have had since the announcement by Government recently that it was now turning to AFECC after Geiger International of Austria failed to raise the required funds for the refurbishment of the key highway.
The Beitbridge-Harare and Harare – Chirundu roads connects several southern, eastern and central African countries and its refurbishment is expected to attract more traffic particularly vehicles passing through southern Africa’s busiest port of entry, Beitbridge.
Transport and Infrastructural Development Minister Dr Joram Gumbo, recently said Cabinet, “in its own wisdom looked at the urgency of that road project and decided that we consider the second bidder for that project”.
The second bidder in the massive road project was AFECC, a Chinese company, which has developed stunning shopping complexes, roads and hotels in various countries in the world, including Zimbabwe.
Already, the government has held two meetings with AFECC.
In both meetings, Zimbabwe is insisting on a strong commitment by AFECC that it has the requisite funds, and is prepared to complete the project within set timeframes.
Gumbo said the negotiations are currently going on well with the top Chinese firm.
“They have been providing the information that we are requesting and they are also asking questions, which we are providing answers to.
“At the moment, all I can say is that there is progress between ourselves and the second bidder and we are hoping to conclude our discussions very soon,” he said.
Zimbabwe’s insistence on AFECC’s financial capability stems from the disappointing 24 months that elapsed since Geiger’s tender was approved but nothing took place on the ground.
Geiger apparently blamed Western sanctions against Zimbabwe for its failure to bring funds into the country.
Gumbo told Business Weekly recently that the selection process of firms that want to be selected to undertake road projects in the country would be thorough.
“We don’t want to go back to the Geiger issues where they were just awarded a tender by the SPB (State Procurement Board) and they spent two years without raising the required funds,” he said.
“So, once bitten, twice shy. Now we want to get proof of funds and the conditions on how the money would be paid back, terms for loan and we give each other timeframes,” he added.
For Geiger it was worse. It could not even take advantage of the goodwill ushered by the new political administration, which has seen several countries warming up to Zimbabwe.
The cancellation of Geiger’s tender by Government mirrors the “no-nonsense approach” that characterises President Mnangagwa’s administration.
AFECC not new to Zim & Africa
AFECC does not look like a firm that Government would mainly be worried about regards its ability to raise the required funds.
The firm is not new to Zimbabwe, having already constructed the LongCheng Plaza, the National Defence University and the Golden Peacock Hotel in Mutare, underlining its financial muscle.
It was also involved in diamond mining at Chiadzwa, in Marange, through its subsidiaries, Anjin and Jinan.
In less than two years, AFECC was able to modernise Anjin’s mining area by establishing seven top-of-the-range dressing lines and formed a complete system for diamond mine industry from prospecting, mining, dressing, sorting to selling.
Kimberley Process officials that inspected Anjin’s mining area said they had never seen such organisation in the world.
At the Jinan mining area, AFECC put five dressing lines into full operation in March 2013.
Similarly, AFECC constructed a relocation area for Marange villagers which is being touted as a model residential community in the country.
The LongCheng Plaza situated in Belvedere, Harare, is also said to be the largest commercial plaza in size, trade scale and complete functions in Southern Africa.
In Mozambique, AFECC has prosecuted several high-value infrastructure projects such as airports, roads and shopping malls.
On July 10, 2014, AFECC and the Mozambique government had a groundbreaking ceremony for the N6 road rehabilitation project.
The N6 is one of the three key trunk roads in Mozambique.
AFECC has undertaken over 100 medium to large projects in almost 30 countries in Africa, Europe, Asia, Central and Southern America, Oceania.
Among the projects are the International Conference Centre and five-star hotel in Madagascar, a sports stadium in Togo, Mauritanian presidential office building and the Maputo International Airport and ministerial office building in Mozambique.
The company has also constructed the Levy Mwanawasa Stadium in Zambia.
