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Patrick Chitumba Midlands Bureau Chief—
THE economy has turned the bend and is now on a firm recovery path as evidenced by rising foreign and local investment in some major companies. Giving an overview of the performance of the economy in Kwekwe on Friday, Vice President Emmerson Mnangagwa said after touring the manufacturing industries in Midlands province, he had come to agree with Industry and Commerce Minister, Mike Bimha that some companies were reopening through foreign or local partnerships.

He said Minister Bimha would “cry” in Cabinet that the media was ignoring positive developments in the economy which come about through foreign and local investments.

VP Mnangagwa said countrywide, there were investments in all sectors of the economy which he said should be highlighted in the media for Zimbabweans to know what was happening in their country.

“I now agree with Minister Bimha. There are companies that are opening for the growth of the economy but such positive news is not being reported. The media only focus on ailing or folding companies. But after touring the companies in Midlands, we can see that there’s positive growth of the economy,” he said.

He said on August 24, President Mugabe will officially launch the actual plant at the Australia-based exploration company — African Chrome Fields — in Kwekwe which has started working on a $1 billion chrome project.

The state-of-the-art exothermic chrome smelting plant outside Kwekwe, VP Mnangagwa said will be a game changer in the chrome industry.

“The chrome company has been doing well since the commissioning of the project five months ago. They’ve now constructed 10 units for ferrochrome production — a development that will see production being increased 10 times from the current production. President Mugabe will on August 24 officially open the 10 units for local processing of chrome fines to ferrochrome,” he said.

The project is one of the major breakthroughs in the implementation of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim- Asset), he said.

“This project will use new technology that is able to smelt chrome concentrate into ultra-low carbon ferrochrome in 45 seconds. President Mugabe will soon be commissioning the project at a ground breaking ceremony for the construction of the state-of-the-art exothermic chrome smelting plant here in Kwekwe,” said VP Mnangagwa.

The new plant will process chrome concentrate to produce ultra-low carbon ferrochrome in 45 seconds and has the capacity to produce 10, 000 tonnes of ultra-low carbon ferrochrome a month.

Turning to Ziscosteel, Vice President Mnangagwa, said the company was a “problem child” but was quick to note that there was a consortium of locals and other foreign investors in talks with the government for potential partnerships.

Ziscosteel, he said, would be reopened with the company regaining its status as the leading steel manufacturer in the country. He said he was happy to note that Unki Mine in Shurugwi was investing in a $120million smelter to increase platinum production.

Unki Mine works on some of the largest platinum deposits in Zimbabwe having estimated reserves of 34 million ounces of the mineral. The mine produces around 64,000 oz of platinum/year and the new smelter is expected to increase that production.

VP Mnangagwa said government was happy that Zimasco had managed to find an investor on a lease basis. The company which had been struggling is now leasing part of its furnaces to a South African Company — Portnex — and will realise $5 million annually in rentals of furnaces one, three and four.

The agreement has also seen Zimasco managing to settle workers’ salary arrears. At the same time, VP Mnangagwa said the partnership between Kwekwe-based company Dendairy and some Norwegian investors was going to play a pivotal role in the growth of the dairy sector in the country.

Dendairy is one of the biggest companies in the country, others being Alpha Omega Dairy and Dairibord Zimbabwe Limited. The company has invested about $10million in the factory and is now producing over 5 million litres of milk per month.

He said Sino- Zimbabwe Cement Company has also been doing well. “We hear that your capacity utilisation is about 78 percent which is magnificent. This company was officially opened by President Mugabe and has been growing each year. I encourage you to invest in modern technology to cut on unnecessary overheads. Technology is the way to go in this day and age,” he said.

At Bata Shoe Company and, Lesaffre Zimbabwe, formerly Anchor Yeast, VP Mnangagwa assured the two companies of government support in making sure that they stay afloat and identify new markets.

“We’ve been under economic sanctions, a development that saw us losing lines of credit but through President Mugabe’s initiatives such as the ease of doing business, we want to assure investors that their investments will be safe. We will assist companies open new markets,” he said.

The government, he said wanted to see the manufacturing industry operating at full capacity adding that President Mugabe had fully explained that only the mining sector required a 51:49 percent shareholding set up in favour of locals.

Industry and Commerce Deputy Minister Chiratidzo Mabuwa said whenever President Mugabe or his deputies travel outside the country, a team of officials from line ministries would be part of the delegations or follow later to cement relations made and woo investors into the country.

She called upon local banks to offer businesses loans at affordable interests. Zimbabwe National Chamber of Commerce president, Busisa Moyo, commended the government for engaging the business sector — a development he said had resulted in negotiations and pulling in one direction.

“The business and the government are now able to sit down and work together for the growth of the economy. This is very commendable and we support such initiatives,” he said.