Government unhappy with Zisco progress Minister Nqobizita Mangaliso Ndlovu

Oliver Kazunga, Senior Business Reporter
GOVERNMENT has expressed displeasure on the pace of implementation by a potential investor towards revival of the defunct steel maker, Zisco.

Industry and Commerce Minister Nqobizitha Ndlovu said this yesterday while responding to questions from the floor during the ongoing Confederation of Zimbabwe Industries (CZI) annual conference and international investment indaba in Bulawayo.

Following the collapse in 2015 of the $750 million Zisco revival deal with an Indian company, Essar Global, Zimbabwe last year secured a $1 billion investment from R and F, a Chinese firm to resuscitate operations at the defunct Redcliff-based steel giant. The Essar deal collapsed due to a number of reasons, including political bickering in the then inclusive Government.

“My acquaintance may not be as thorough and detailed as I would have thought. We do have an interest and an investor (R and F) who expressed interest some time back. I think it’s now two years if I am not mistaken. Obviously, we are not satisfied with the progress made on that part,” said the newly appointed minister.

It is hoped that if the $1 billion Zisco deal is fully implemented, the investment will result in one million tonnes of steel being produced in the next 18 months.
And it is projected that the investment might also rise to $2 billion upon completion of all the implementation stages.

“Government has done everything in its power to accommodate a lot of the demands from the potential investor (R and F) but still progress has not been much.

“So, we were looking at ways in which perhaps we could open up for more interested investors but it’s going to take some bit of time and I want to presume we need to avoid also infringements on the part of the person who has made the forefront. So we want to make progress in the near term,” said Minister Ndlovu.

Zisco ceased operations at the height of economic challenges in 2008 resulting in over 5,000 people losing jobs. – @okazunga

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