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Nine years after its collapse, Ziscosteel, undoubtedly one of the pillars that anchor our economy, could rise again.    

The iron ore miner and processor went under in 2008 because of financial constraints and breakdowns of lifeline facilities. Since then, the country has been importing steel products. As a result the country is losing millions to South Africa and other markets where steel and steel products are being sourced.
Also, up to 3 500 people who worked for Ziscosteel have lost their jobs. The job losses are obviously more than the 3 500 who directly worked for Ziscosteel as thousands more were employed in the downstream value addition sector. Redcliff, a town that was home of the steelworks, has effectively collapsed together with Ziscosteel.

A 2015 attempt by the Government and an Indian company Essar Global to revive operations failed to take off on disagreements over the ownership of iron ore reserves. An earlier one involving Global Steel Holdings, also from India, had also failed in 2006.

However, the search for the new investor to get the furnaces running again is about to be concluded, five months after an official announcement that six potential investors had been shortlisted. The Government this week announced that an investor had been identified.

Industry and Commerce Deputy Minister Chiratidzo Mabuwa said Minister Dr Mike Bimha would soon make the official announcement.

“We have prioritised the resuscitation of Ziscosteel notwithstanding all the lessons that we learnt from the previous deal (with Essar Global), which did not come through. Out of the six shortlisted potential investors, we have now identified what we considered as suitable partner.

“The partner is an investor from outside the borders of Zimbabwe but it’s premature now for me to make the disclosure, the Honourable Minister will make an announcement at the right time,” she said.

Last month Dr Bimha said the Government wanted an investor who would focus mainly on steel production while distribution and other functions that were being performed by Ziscosteel would be opened to local participation.

We are seeing substantial progress in efforts to resuscitate the Midlands giant.

We, however, must point out that the challenge all along hasn’t been an inability to tie down willing suitor.  The fact that the Government had a six-company shortlist is more than enough proof that interest in the asset abounds. The challenge has been in securing a partner with whom to consummate a lasting relationship.

Our prayer now is for the Government to ink an agreement that will lead to the revival of Ziscosteel on a long term basis, not one that promises much but fizzles out soon after. If this happens, this will be good news for Redcliff, for Kwekwe, for the Midlands and the country at large.

There is no reason why the country should go without domestic iron ore mining and processing because every economy moves on wheels of steel. Some development experts actually assert that the development of a viable steel industry is a marker for economic development.

Therefore, as our economy continues to grow, it must not grow without a viable local steel industry that must be Ziscosteel.

We are confident that the Government has conducted all the due diligence that must be carried out in picking the company to lead in that quest. It must be well resourced and possessing world-class experience in running an integrated steelworks comparable to what we have at Redcliff. It must be prepared to operate in the leaner focus that the Government has prescribed, leaner than the old Ziscosteel’s that was involved in mining iron ore, processing, distribution and marketing.

After so many false starts, some can be justified for being a bit pessimistic. Among these are some former Ziscosteel workers who are wallowing in poverty after they lost their jobs.  Among them also is Redcliff Town Council, whose wellbeing is almost 100 percent tied to Ziscosteel, much like Hwange town to Hwange Colliery Company Limited and Zvishavane to asbestos mining, now platinum or Chiredzi  and Triangle to sugarcane growing and processing.

However, we have every reason to be optimistic. Hwange Colliery Company Limited is an example of the success of efforts by the Government to revive the strategic firm after about a decade of struggling. A few months ago its shareholders approved a scheme of arrangement whose positive impact is beginning to be felt. Production is rising, as well as revenues. This has made it possible for the coal miner to pay part of salary arrears it owes its workers a few weeks ago.

We are thus optimistic that the latest effort to get back to business at Ziscosteel will succeed.