Once the
largest steel maker in Southern Africa, Zisco shut down operations in 2008 due
to a combination of factors, including hyperinflation, corruption and
mismanagement.
The closure
resulted in significant economic and job losses, as well as the decline of
related industries.
At the peak of
its powers, Zisco produced 1,2 million tonnes of steel per year and employed
more than 4 500 people.
Several
initiatives, including collapsed investment deals with Global Steel Holdings of
India and Esser Africa, have failed to yield the desired turnaround objectives.
Zimbabwe’s
steel imports are significant, reaching nearly half a billion dollars annually.
Key sources include South Africa, India and China.
The country’s
steel consumption is estimated at 1,5 million tonnes per year.
However, the
iron and steel sector remains critical for economic growth and development,
including construction, automobile and other manufacturing sub-sectors.
Industry and
Commerce Minister Nqobizitha Ndlovu told Parliament recently that the ministry
was already implementing the action plan agreed at the iron and steel indaba
last year.
The minister
indicated that some of the resolutions pertain to the revival of Zisco through
promoting synergies with the Chinese firm Dinson Iron and Steel Company, which
commenced production last year.
He said the
start of production at Dinson Iron and Steel Company last year presented a
unique opportunity to build synergies with the existing Zisco plant and other
downstream industries.
This comes as
the Government is close to signing a Memorandum of Understanding with two
potential investors in a development expected to create healthy competition in
the local steel industry.
He further
noted that key initiatives were being undertaken as the iron and steel sector
was at the core of re-industrialisation efforts to boost economic growth and
create jobs.
“The first one
is the reviving of the wire mill plant at Lancashire Steel, which will see the
manufacturing of wire rods, drawn wire, weld wire, barbed wire, as well as
galvanised wire,” said Minister Ndlovu.
In addition, it
is expected to create more than 20 jobs and provide wire-related products to
both up and downstream industries, and generate revenue for the company.
Minister Ndlovu
said the second initiative entailed establishing a limestone beneficiation
plant at Buchwa Iron and Steel Company to manufacture burnt lime, aggregate
stones and mill limestone.
“We had
Kuvimba, which had a management contract that has since been terminated owing
to non-performance by the contractor.
“This,
therefore, means that the Zisco board and management have regained urgency to
manage and control their affairs, and we welcome this development at this
critical juncture,” he said.
Zisco is
mobilising resources to revive one of its kilns for limestone beneficiation
into burnt lime.
Dinson produces
pig iron and steel billets for export and will soon start the second stage of
producing hot-rolled wires and rolling bars.
Minister Ndlovu
said Dinson Iron and Steel Company had agreed in principle to leave certain
types of steel products to be produced by Zisco.
These include
shafts, wire, beams, angles, and flat sections.
Zimbabwe is
estimated to hold over 30 billion tonnes of iron ore reserves, positioning it
as a critical player in global steel production.
Despite these
resources, Zimbabwe’s steel manufacturing capacity declined after the collapse
of Ziscosteel, which was once the largest steel producer in Africa. Herald
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