Zimpapers Logo

The government has vowed to protect Indian businesses in Zimbabwe amid indications that the operationalisation of the much anticipated New Zim- Steel multi-million deal has officially commenced. Addressing an India-Zimbabwe business meeting in Harare last week, Industry and Commerce Minister Mike Bimha confirmed the development and pledged government’s commitment to seeing the company’s operations through.

“The Zimbabwean government is committed to protecting Indian investments in Zimbabwe. Our confidence in the company is high following the successful operationalisation of the Essar deal.

“I can confirm that implementation of a new phase of New Zimsteel has now started. This will go a long way in boosting trade and business between the two countries,” said Minister Bimha.

The New Zimsteel project was born after Essar purchased 54 percent of Ziscosteel, now New Zimsteel in a deal initially worth $750 million before glitches involving mineral rights that were to be given to the company’s subsidiary, New Zim Minerals arose.

Minister Bimha first announced to parliament this year that  Essar Africa would soon come to revive the sleeping giant and bring relief to the over 1,000 workers who have gone without pay for years.

Successful implementation of the NewZimsteel project however requires $650 million all to be spent under the first phase of the project which is set to renew production at 500,000 tonnes per annum and would increase to 1.2 metric tonnes per annum in the second phase. At its peak, Zisco produced more than one million tonnes of steel per annum and employed up to 4,000 workers.

Meanwhile, Indian ambassador to Zimbabwe Jeitendra Tripathi lamented the decline in trade and investment volumes between the two countries over the last two years and called on the Zimbabwean government to find a solution for this anomaly.

“Bilaterally, India and Zimbabwe’s ties are getting stronger and stronger but one thing worries me at the moment. The trade figures between these two countries are not as high as they used to be. Government has to do something to address this decline,” said Ambassador Triphati. — FinX