Zimbabwe hunts for Zisco investor again

THE Government is in a fresh hunt for strategic partner to resuscitate operations at the defunct State-owned Zimbabwe Iron and Steel Company (Zisco).

Over the years, the Redcliff-based steel manufacturing plant has been a subject of foreign investor interest with companies such as Essar Africa Holdings, a unit of India's Essar Group having agreed to invest US$750 million in Zisco in 2011, during the era of the inclusive Government.

But the deal collapsed in 2015.

Again in late 2019, negotiations for a US$1 billion revival deal between Zisco and R & F of China, which had shown keen interest to revive operations at the steel plant also collapsed.

In September last year, Zisco acting board chair Engineer Martin Manuhwa announced that his organisation had come up with a short-term revival strategy targeting resuscitation of the subsidiaries.

In a letter of invitation to the tender seen by Business Chronicle, Eng Manuhwa said:
"It (Zisco) is seeking investors who would be interested in availing funds (equity/debt) to resuscitate this
former iron and steel producing company."

The expressions of interest should be delivered at Zisco offices in Harare by April 30, 2021.

The Redcliff-based steel manufacturing firm ceased operations in 2008 due to poor management and lack of capital to recapitalise.