In late March a US$700m Chinese loan was announced-the country's largest loan package since the signing of the Global Political Agreement in 2008. The loans awarded by China's Export-Import Bank include: US$342m for agricultural equipment and machinery; US$99.5m for health equipment and supplies; and US$144m for the renovation of Harare's water and sewerage system. China is also providing US$102m to the central government and two grants worth US$14 million. The Chinese authorities describe the loan as humanitarian, but there is little doubt about Chinese hopes for a quid pro quo: in announcing the agreement, the Chinese vice-premier, Wang Qishan, expressed his hope that "Zimbabwe will protect the legitimate right of Chinese businesses in the country." This would appear to have already affected government policymaking, with Saviour Kasukuwere's announcement that alluvial diamond miners-including the Chinese-run Anjin Zimbabwe-would not after all be nationalised. It remains to be seen whether Chinese miners will be exempted from the latest indigenisation requirements-or perhaps on what grounds they will be excluded, since it seems highly unlikely that they will face expropriation.

The Chinese loan makes obvious economic and political sense for Mr Mugabe, since it appears to come without any of the conditionalities that would be imposed by Western donors. However, opponents argue that the government is selling the country's mineral wealth for short-term political gain. It certainly seems likely that the funds will be used to bolster ZANU-PF's electoral prospects, possibly by part-funding wage increases or boosting food supplies. The latter is becoming an increasingly pressing issue, with the Ministry of Agriculture admitting that six of the country's nine provinces face critical food shortages. Only the three Mashonaland provinces in the north-east have received adequate rainfall this season, leading to forecasts that the country will need to import a minimum of US$300m to meet food requirements-hardly an ideal pre-election situation.