Midsteel Foundry, one of Zimbabwe’s longstanding steel manufacturers based in Gweru, has appealed for government support through inclusion in the Empowerment Reserved Sector, saying access to funding is critical to reviving operations and restoring competitiveness.
The company said financial constraints are limiting its ability to expand production and improve product quality, at a time when demand for locally manufactured products continues to grow.
Midsteel Foundry Operations and Sales Manager, Lovemore Gwapedza, said the company urgently requires fresh capital to modernise its plant and equipment.
“The foundry requires capital to modernise its plant and equipment,” Gwapedza said, adding that ageing machinery has constrained production capacity and made it difficult to meet market demand.
He noted that inadequate funding has left local industries struggling to compete against foreign-owned firms that have stronger financial backing.
“Without adequate funding, local industries struggle to compete with foreign-owned companies that have stronger financial support,” he said.
Gwapedza said modernisation would improve operational efficiency, enhance product quality and enable the company to make a greater contribution to the domestic economy.
“If we can access the necessary support, we will be able to increase production capacity, improve product quality and contribute more meaningfully to the economy,” he said.
He added that government intervention would help preserve jobs while strengthening Zimbabwe’s manufacturing sector.
Meanwhile, the company has also called for a level playing field in the pricing of scrap metal, a critical raw material for the steel industry.
Gwapedza said local manufacturers are currently paying higher prices for scrap metal than some foreign firms, a situation he said is undermining competitiveness and increasing production costs.
“Local manufacturers are paying higher prices for scrap metal compared to some foreign firms. We are simply calling for a level playing field in pricing so that our companies can compete fairly and sustainably,” he said.
He urged authorities and industry stakeholders to address the pricing disparities to ensure fair access to scrap metal and support the growth of local steel producers. – (Business Times)
