The China Council for Promotion on International Trade (CCPIT) has struck an agreement with Government which will see one of the council's companies setting up a multi-million dollar fertiliser manufacturing plant in Zimbabwe.
CCPIT of Zhenjing China comprises of enterprises and organisations operating in the economic and trade sectors in China.
It is the most important and the largest institution responsible for the promotion of foreign trade in China.
Macro-Economic Planning and Investment Promotion Permanent Secretary Dr Desire Sibanda confirmed the development on the sidelines of the Zimbabwe Investment Authority Investor training and induction workshop yesterday.
"Fertiliser is a critical ingredient in our agrarian reform, therefore if we are able to negotiate with fertiliser companies that are able to put up plants here and export, I assure you the economy will grow.
"We have been in several meetings with a Chinese delegation currently in the country and they made their presentation which entails that the setting up of a fertiliser plant to supply the local market and for export," said Dr Sibanda.
This proposed deal comes at a time when Government has come up with competitive incentives for firms that will operate within the special economic zones.
Dr Sibanda said Government has already identified three special economic zones sites which are Sunway City, Bulawayo Industrial Area and Victoria Falls.
"We will provide the competitive incentives to the subscribers of the special economic zones in terms of facilitation and also in terms of ensuring that they import raw materials needed for their investment duty free," said Dr Sibanda.
He said Zimbabwe has been lagging behind regional countries like, Zambia, Tanzania, South Africa, Ghana, and Mozambique as they have been offering competitive incentives for investors in their special economic zones.
Dr Sibanda said China which is one of pioneers of special economic zones has applauded Zimbabwe for moving with times by implementing special economic zones.
"The Chinese delegation and the embassy team were satisfied when we talked about Special Economic Zones, saying we were now moving with times," he said.
Dr Sibanda said Zimbabwe has abundant natural resources and there is need for investors to come with new technology infrastructure and capital and manufacture to add value to available commodities before they are exported.
"Zimbabwe has resources but the problem is getting new technology infrastructure and capital, we want them to come here and manufacture then export, this will improve our balance of trade, "he said.
The CCPIT as a bloc has shown interest in the development of the country's special economic zones.