By Business Reporter – Thursday 26 November 2020
HARARE – The revival of Ziscosteel is key to the economy through its potential benefits in job creation and value chain impact in companies such National Railways of Zimbabwe and Hwange Colliery and the resultant savings in foreign currency in excess of US$1 billion through importation of steel products.
The steel giant had ceased operations in 2008 owing to operational challenges that affected over 3 500 workers in the Midlands Province.
“In 2021, Government will resuscitate Ziscosteel through innovation and harnessing inward opportunities, while working closely with local investors. This will be done through courting new investors who will bring new technology and new skills,”
“Accordingly, ZWL$2.3 billion has been allocated to the Ministry of Industry and Commerce to spearhead the industrialization thrust,” said Finance and Economic Development minister Mthuli Ncube during presentation of the 2021 national budget in Harare today.
While the search for new investors is in progress, Government is currently implementing a short-term roadmap of resuscitating the firm’s subsidiaries which include ZimChem, Lancashire Steel, and Buchwa
Iron Mining Company (Bimco) among others.
Current operations are targeted at raising capital through the sale of waste and boulders, among other activities, while plans are underway to resuscitate the mills to restart the manufacturing processes which are expected to benefit Lancashire Steel.
By 1984 ZISCO was the largest foreign exchange earner in the manufacturing sector with 80 percent of its products destined for exports.