The new town, which is set to be a game changer for the
country, will be established for about 30 000 residents and the site plan will
be made public soon.
The US$1,5 billion integrated iron and steel plant being
constructed in Mvuma by Chinese firm Dinson Iron and Steel Company (Disco),
which is envisaged to be one of the biggest in Africa, represents a huge
stepping stone in Zimbabwe’s modernisation and industrialisation agenda.
Disco is a subsidiary of Tsingshan Holdings, the world’s
largest stainless steel producer which is building Africa’s biggest integrated
steel plant whose first blast furnace is expected to be switched at the end of
September.
The steel plant was commissioned by President Mnangagwa
paving the way for construction works that started last year.
The world-class iron and steel plant would tap into a
resource base that is estimated to last for 100 years.
The integrated project, which comprises a carbon and steel
plant, an iron ore mine, and a ferrochrome plant will also result in over 10
000 people benefiting through employment across value chains.
Buildings have emerged out of thick forests where staff
houses, warehouses, blast furnaces, and a cement mixing plant are nearing
completion.
Equipped with a 1,5km-by-600-metre carbon and steel plant,
an iron ore mine, and a ferrochrome plant, the project will have a capacity of
1,2 million tonnes a year.
In an interview on the sidelines of a tour of the
construction site by industrialists and banks on Friday, project director Mr
Wilfred Motsi said a new town is coming in with different land uses and opportunities
for bankers and industrialists.
The industrialists and banks toured the construction site
to get a first hand feel of progress on the ground ahead of the November
deadline for the blast furnace to be switched on as well as the approval of the
new town site plans which will require huge investments by the private sector.
Mr Motsi said the response from stakeholders has been
overwhelming as the project has attracted interest from across all sectors.
“We are working closely with the Government, especially the
Ministry of Local Government and Public Works who are working on the plan for
the development of the new town. The site plan has been approved,” he said.
“We should start construction and we need stakeholders such
as industrialists and banks to come on board so that we can develop the new
city.”
Mr Motsi said Disco owns part of the land from where the
new city would be developed while the other belongs to Chirumhanzu Rural
District Council.
“The land for the new site is there. As Disco we bought
some of the land which means title deeds that are demanded by banks or
financial institutions are readily available to potential buyers,” he said.
Mr Motsi said Disco’s core business is iron and steel
production while the rest of the land is open for other players to come and
invest.
“We will have an industrial park for value addition
especially for foundries to make other finished products that are in demand in
the country,” he said.
The plant project, Mr Motsi said, is going according to
plan and is now 70 percent complete with all the mechanical equipment being
fitted.
“The super infrastructure itself is almost complete. As you
can see we are doing panel fittings in the blast furnace. This is one of the
biggest projects and we are working according to timelines. We are saying by
November this year we will be starting production at this plant,” he said.
Zimbabwe Institute of Foundries chief operating officer
Dosman Mangisi said the proposed new city will create a lot of opportunities
for the business sector.
“The physical planning department in the Ministry of Local
Government has since visited the site and approved the new town plans. Zimbabwe
will never be the same again,” he said.
“Looking into this big picture, you need to picture
Redcliff town which was born out of Ziscosteel, but this new town will actually
be threefold. In fact, it will be a big city and we will have banks, schools,
recreational facilities, hospitals, and a lot of companies including industries
around the steel mining.”
Mr Mangisi said the steelwork project will be the hub of
all raw materials for the foundries sector.
He said Disco will stimulate the metal industry in the
country bringing life into small-scale miners.
“Disco will be the biggest foundry in the country and it
will also be the centre of raw materials. We have already engaged them for raw
materials like ferro-chrome, pig iron, iron and steel, and coking coal once
they start production,” said Mr Mangisi.
“The company’s existence will bring the cost of doing
business down as companies are currently importing iron and steel as well as
other related products.”
Mr Mangisi said the country will reduce the steel import
bill of US$3 billion once the company starts production.
“At the moment, 75 percent of steel that is being used in
the country is being imported and we want to cut on that. Talk of ball joints
and tie rod ends, and we are saying in the next five years we should be making
them ourselves,” he said.
“We will be dealing with quality raw materials. When we
cast these metals we consider sustainability and human life and all of them
will be done above board. Zimbabwe will start to see itself as the biggest
player in the metal industry with a lot of downstream industries benefiting.”
Mr Chakunda Garainashe who was representing POSB bank said
there are a lot of opportunities that will be realised at Disco and the new
city.
“We are seeing a lot of potential for us as a bank and we
want to be actively involved in the development and growth of this town because
there is a huge opportunity for everyone. We have a whole new town to be
constructed and our focus is to bank all Disco’s stakeholders, and this company
will create value chain benefits and stakeholders will benefit,” he said.
Mr Garainashe said they will prioritise mortgage financing
for workers to construct houses and other social amenities.
Nyaradzo Life Assurance Company general manager Mr Patrick
Mhuka said even in death, residents of the new city will require a decent
burial.
“We are here as Nyaradzo to offer the best funeral policies
for the workers and the residents of the new city. We also see a great business
here,” he said.
CBZ divisional director for business banking, Mr Paul Chimudzi
said they are also excited to be playing a role in the development of the new
city.
President Mnangagwa said the project would also result in
the construction of other enabling infrastructure including a dam, roads,
railway track, power line, bridges, schools, health facilities and modern
houses.
Among other infrastructural development projects to come as
a result of the Manhize steelworks, is the construction of a 50-kilometre
railway line from Mvuma to the steel plant.
Disco has also signed a Memorandum of Understanding (MoU)
with the Government to undertake refurbishment and construction of a 1000-km
long railway system to provide a dedicated, reliable, uninterrupted, and
efficient railway line to facilitate the movement of the company’s products for
local and export-imports routes. Chronicle
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