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Sikhulekelani Moyo, Business Reporter

GOVERNMENT has called upon state entities and private organisations to give first preference to local players when disposing their scrap metal to help promoting growth of the domestic metal foundry value chain.

Speaking at the on-going Zimbabwe Institute of Foundries (ZIF) Conference hosted at the Zimbabwe School of Mines in Bulawayo yesterday, Industry and Commerce Deputy Director Quality Assurance, Mrs Mary Chingonzoh, said foundry industry players have raised perennial concerns over scrap metal shortages in their operations at a time when those who have it were exporting.

“I have just heard that NRZ is holding an auction for scrap metal and I call upon the foundry sector to mobilise and take advantage of this opportunity.

“I would like to encourage Government departments, parastatals and other organisations to give first preference to the local foundry sector when disposing off their scrap metals as a critical raw material for the foundry,” said Mrs Chingonzoh

“On scrap metal issue, the ministry had some discussions with members of Engineering, Iron and Steel Association, and they raised their concern on the issue. The ministry wrote to concerned parties citing the associations concerns.”

ZIF executives have been engaging Government over exportation of scrap metal saying since the closure of the giant iron and steel company, Zisco, they depend on scrap metal as their key raw material.

The sector has called for policy review to ensure export of scrap is banned.

In this regard, Mrs Chingonzoh said Government has put in place various initiatives to support the growth of the sector including funding, facilitating rebates on duty and value added tax deferment on imported capital equipment.

“The Government is spearheading import substitution through implementation of the local content strategy. Therefore, in this respect we would like to see the foundry sector increasingly becoming significant in the economy,” she said.

“Steel demand stands at 500 000 tons per annum. Of these 377 000 tons is imported. Our foundry sector can take advantage of this.”

Bulawayo Metal Foundry (Pvt) Limited Founders and Engineers chief executive officer, Ambassador Zenzo Nsimbi, said the growth of their sector was hindered by lack of inputs and affordable finance for retooling. He said there is need for a revolving fund to support the growth of the sector.

“If the Government sets a revolving fund, then the foundry players will be using that money and pay back and the amount will continue to grow through interest,” he said.

“We only need an affordable fund, which will assist to grow the sector through reduced cost of doing business, which will allow us to sell our products at a competitive price.”

In her welcome remarks Bulawayo Minister of State and Devolution, Judith Ncube, said value addition and beneficiation of scrap metal is key towards making sure that strategic raw materials are secured and available for the growth of the industry.

Bulawayo Provincial Affairs and Devolution Minister, Judith Ncube

She also urged women and youths to participate in the sector saying there are youths and few women who are into scrap metal collection.

“It’s envisaged that the country will witness employment creation, more exports and GDP growth through growth of the metal industry. All this will strengthen our local currency he Zimbabwean dollar,” said Minister Ncube. — @SikhulekelaniM