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Dr Mike Bimha

Government has gazetted the Zimbabwe Iron and Steel Company (Debt Assumption) Bill to take over about $500 million owed to both domestic and external debtors.

The move has ignited hopes of the revival of the defunct steel giant which used to anchor economic activities in the Midlands and beyond as it had many downstream industries in the manufacturing sector.

Government has made the revival of Zisco operations a priority hence this latest move to take over the debt to allow the new investor to start on a clean slate.

A Chinese company, R and F Company has pledged to invest $1 billion to revive Zisco. The Minister of Industry and Commerce Dr Mike Bimha said last October that key components of the agreement between Government and the Hong Kong- based company had already been signed.

Dr Bimha said when fully operational, the Redcliff- based steel manufacturer, will narrow the trade deficit by $350 million per year as it will drastically reduce steel products imports. The company is also expected to be the single largest foreign currency earner with annual exports of $1 billion projected.

Minister Bimha said R and F is not into steel making but is providing the funding for the revival of Zisco which was once Africa’s biggest integrated steel manufacturer.

The revival of Zisco is also expected to boost other firms such as Hwange Colliery Company, National Railways of Zimbabwe (NRZ) and many other downstream industries.

Dr Bimha said Government was fully committed to the revival of the steelmaker which folded operations in 2008 thereby making 5 000 workers redundant.

He said Zisco was expected to contribute significantly to the country’s economic turnaround. In 2011, India’s Essar Group had agreed to buy 54 percent of Zisco’s shares in a deal worth $750 million.

The deal however collapsed in 2015 following disagreements over iron ore claims. The Midlands community is therefore looking forward to the resumption of operations at Zisco. The revival of Zisco will breathe life to Redcliff town and the nearby Kwekwe city which used to have many companies that depended on Zisco products.

Zisco used to be one of the biggest employers in the Midlands province and is expected to regain this status in a few years to come.

We have already alluded to the fact that companies such as Hwange Colliery Company and NRZ will be boosted by Zisco operations and it is our fervent hope that such companies are gearing up for the expected increased business.

Zisco will rely on the NRZ to transport coal from Hwange to the plant and also steel from the plant to the various destinations outside the country. It is therefore imperative for NRZ to ensure that it has the capacity to meet demand for its services.

The Hwange Colliery Company and other coal mining companies should be able to meet the coal demand for the giant steel maker.

The Redcliff municipality on its part should brace for an increased population once Zisco resumes operations. A number of companies that depend on Zisco products are likely to be set up in Redcliff so the municipality should not be found wanting when it comes to providing services to the new investors.
There are very strong indications that our economy is on a recovery trajectory buoyed by the mining sector.

The thrust now is for all Zimbabweans to contribute to the growth of the economy, taking advantage of the many policy interventions meant to promote business growth.

Government has for about two years now been working on measures to enhance ease of doing business and a lot of ground has since been covered. We have every reason to conclude that the country is poised for an industrial boom given the response from international investors represented at the just ended World Economic Forum held in Davos, Switzerland.

President Emmerson Mnangagwa who led a high powered delegation to the meeting, took the opportunity to explain Government’s position regarding investment in the country and the many investment opportunities that Zimbabwe is offering.