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Chiratidzo Mabuwa

Business Editor
THE Senate has demanded urgent action on the revival of Ziscosteel after the collapse of the $750 million Essar Africa Holdings deal last year. Debating in the Upper House last Thursday, Senators put Industry and Commerce Deputy Minister Chiratidzo Mabuwa to task on failed promises over the resuscitation of the defunct Redcliff-based steel maker.

Senator Milton Ntabeni from the Midlands province torched the storm when he sought clarity on the state of the company. “Minister, this Senate wants to know the status of the sleeping giant Ziscosteel. When is this sleeping giant going to operate at full swing? People of Ziscosteel are suffering minister, shame!” said Ntabeni.

Senator Fortune Charumbira weighed in as he pinned Mabuwa on her promise to have the company operational by March last year. “Only last year around February, I was sitting next to the Deputy Minister to my left. This particular issue was raised and she promised but I was very surprised the way she handled the issue.

“She (Mabuwa) said that all the deals at Ziscosteel had gone through and that by March last year, it would be fully operational,” said Sen Charumbira.

“We raised supplementary questions as to the authenticity of what she was saying. She said in fact, ‘you don’t know that something is happening at Zisco but things are now in order’. Now, I’m surprised, she seems to be saying the contract, which subsisted last year, somehow something has changed in that contract. What do you do with a minister who says by March things will work and then comes this year and says no I’m coming with another explanation?”

In response, Mabuwa admitted initial measures to bring Zisco back to life had failed but said there was still hope. “What I’m going to say is that Chief, as a woman I don’t lose hope even if I go through a miscarriage. I’ll do the needful and work on conceiving and producing a child but it’s up to the husband,” she said.

Mabuwa, however, concurred that Zisco’s revival has taken too long adding that the situation at the company was a cause for concern to the government. She said the Essar deal collapsed because of the depressed prices on the market for the product. Mabuwa said a committee has been set up that is working on the way forward and identifying new suitors.

“We’re also looking at other strategies of not necessarily perhaps giving the possible suitors the whole outfit or the whole portfolio of the giant, but perhaps compartmentalising it or selling or attracting investors in special SBUs (Strategic Business Units) that are within Ziscosteel,” said the Deputy Minister.

She could, however, not give further details on the new suitors saying the information was not yet for public consumption. Senators also sought an explanation on measures being implemented to revive the Cold Storage Company.

In response, Mabuwa said her ministry in conjunction with the Ministry of Agriculture, Mechanisation and Irrigation Development had tabled a position paper to Cabinet detailing the turnaround strategy for the firm, which includes disposal of non-core assets and growing the national herd.

The Deputy Minister said the government through Zim-Asset was facilitating industrial growth that is anchored on value addition and beneficiation. At the moment average manufacturing industry capacity utilisation hovers around 30 percent with selected entities mainly in the food processing sector clocking 100 percent and some at 80 percent.