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Patrick Chitumba, [email protected]

THE speedy implementation of the US$1,5 billion Dinson Iron and Steel investment project at Manhize in the Midlands Province reflects the growing confidence that investors have in Zimbabwe in response to the improved ease of doing business ushered in by the Second Republic, President Mnangagwa said yesterday.

Speaking to reporters after conducting a progress tour of the massive investment project by a Chinese global investor, which is nearing completion, the President said the revitalisation of the iron and steel industry will no doubt anchor the modernisation and transformation of Zimbabwe’s economy.

Touted to be among Africa’s biggest integrated steelworks, the project is being built by China’s global stainless steel producer, Tsingshan Holdings Group Limited through its subsidiary — Dinson Iron and Steel Company (Disco).

The group also owns Dinson Colliery in Hwange in Matabeleland North and a ferrochrome plant, Afrochine Smelting Limited, in Selous. 

With a projected capacity to produce 600 000 tonnes of products in the first phase rising to 1,2 million tonnes in the second phase then 3,2 million tonnes in the third phase and ultimately five million tonnes per year in the final phase, the Manhize project is expected to earn the country millions of dollars in foreign currency through exports.

“I am extremely happy and excited by the development and achievements so far achieved by the company here,” remarked President Mnangagwa after concluding an hour-long tour during which he assessed the blast furnace, sintering plant and power station, among other key project elements. 

“This will be one of the biggest steel enterprises on the African continent. I believe that down the line it might be the biggest and the most modern steel enterprises on our continent and resources are there, technology is there and they are moving very fast to become the big player.”

Disco chairperson, Mr Benson Xu guided the tour of the Presidential delegation, which included Vice-President Dr Constantino Chiwenga, Ministers of Defence and War Veterans Cde Oppah Muchinguri-Kashiri, Mines and Mining Development Zhemu Soda and Midlands Provincial Affairs and Devolution, Cde Owen Ncube among senior Government officials. The President expressed excitement, in particular, over the higher level of involvement of young professionals as key players in the projects from casual employees to management roles.

A majority of employees at the steel plant are aged between 20-30 and have in about two years seen to it that the sintering plant, blast furnace, workstation and power plant are all 100 percent complete while the blast furnace stands at 99,8 percent with the oxygen plant at 95 percent complete.

The successful implementation of the iron and steel investment is a big win for the country’s National Development Strategy (NDS1) and the ultimate Vision 2030, as it positions Zimbabwe among the ranks of global steel manufacturing powerhouses. The mega-investment project encompasses the establishment of a Smart City to be called Manhize Town and also a Science University. It paves the way for the beneficiation and value addition of steel production, which will accelerate and drive the province’s economy high up the value chain with massive spin-offs for the entire country and the region.

Other products that the company will eventually produce include pipes, bolts and nuts, smaller slags, rolled tubes, fences, shafts, wires and bars, among others.

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For any country to have a modern economy, it will require industrialisation through enterprises such as the Disco Manhize steel plant, added President Mnangagwa, pointing out that soon Zimbabwe will be producing its own steel from its own God-given natural resources.

“We have been importing these things but we are going to be producing them and who is doing it? It is the young generation but they need guidance from us the elders. 

“This investment and the speed at which works are ongoing is a testimony of the confidence the investors of this project have in the conducive business environment and policies of the Second Republic,” he said.

Turning to Disco employees, management and senior Government officials, President Mnangagwa said Zimbabwe is home to vast deposits of minerals, including iron ore, which is a critical raw material with multiple applications across various industries.

“Inputs for sectors such as the automotive industry, consumer durables, railways, aviation, as well as construction and infrastructure development are derived from the iron and steel industry. 

“Hence, this sector generates output and employment opportunities for numerous other industries,” he said.

Over the years, the full potential of iron ore resources and value chains have remained largely untapped in Zimbabwe and yet under the Second Republic, there are milestones being realised through exceptional teamwork, focus and determination from both the public and private sector.

As such, President Mnangagwa said value addition and beneficiation must be the backbone of NDS1 under the industrial transformation pillar for the attainment of Vision 2030 of an upper middle-income status.

“It is, therefore, pleasing that our iron ore will be fully exploited, value-added and beneficiated locally. 

“This shift in focus allows us to realise maximum benefits from our natural resources while also capitalising on the value chains including processing, manufacturing and the supply of high-value finished steel goods and products,” he said.

“It is my hope that all efforts will be made to ensure that outstanding works are completed as per the schedule for the production of both pig iron and steel billets and bars. 

“The steel plant will catalyse downstream industries, creating a positive ripple effect of economic growth and job creation. By producing steel locally, we can reduce our reliance on imports, stimulate local industries and foster a culture of innovation and entrepreneurship,” said President Mnangagwa.

By producing its own steel, he said, the country can accelerate infrastructure development, improve connectivity and enhance the quality of life for all Zimbabweans.

“The well-being of our communities should not be overlooked. Mineral resources are finite hence their extraction should leave a positive legacy for future generations. 

“I applaud companies from the People’s Republic of China for the continued investments in our economy. 

“This investment through Dinson Iron and Steel Company signifies more than just financial support, it represents a shared vision for a brighter future between Zimbabwe and China,” said the President.

He further reiterated that the national development philosophy “Nyika Inovakwa nevene vayo/Ilizwe lakhiwa ngabanikazi balo” will remain a rallying point as Zimbabwe forges ahead with its transformative development agenda, and that it will undoubtedly realise the set targets.