Zimbabwe makes major strides in reviving steel industry

Zimbabwe is steadily reclaiming its position as a regional steel industry leader after the recent shipment of nearly 100 tonnes of steel products by the newly commissioned Dinson Iron and Steel Company (DISCO). Since its launch in mid-2024, DISCO has begun supplying external markets, signaling a critical revival nearly two decades after the closure of the once-mighty Zimbabwe Iron and Steel Company (ZISCO).

The Manhize steel plant near Mvuma, backed by a US$1.5 billion investment from Chinese steel giant Tsingshan, is set to transform Africa's steel landscape. Initially targeting an annual production of 600,000 tonnes of iron, the plant aims to progressively ramp up output and eventually become the continent's largest steel producer.

Recent data from the Minerals and Marketing Authority of Zimbabwe shows that Zimbabwe exported 86,552 tonnes of steel products in the first four months of 2025. While this figure represents cumulative sales for the period, DISCO's actual exports began only recently, with shipments currently destined for South Africa.

Contracts have also been secured with companies in the Democratic Republic of Congo (DRC), Zambia, and Mozambique, with shipments to these regional markets expected to start soon. These developments are poised to further cement Zimbabwe's growing presence as a key steel supplier across Southern Africa.

The Minerals Marketing Corporation of Zimbabwe (MMCZ) expressed optimism about DISCO's market expansion, stating, "It is still anticipated that there will be improvements in trade receipts as Dinson Iron and Steel seeks to expand into regional markets."

In an interview last week, DISCO project manager Wilfred Motsi confirmed receiving initial orders from South African firms, attributing this demand partly to ongoing challenges within South Africa's steel sector. Notably, steel giant ArcelorMittal South Africa announced plans to cease some operations earlier this year, affecting thousands of jobs amid weak domestic demand and competition from imports, especially cheaper Chinese steel.

"We are starting to see orders come in from South Africa. While they are not massive yet, it's a promising start," said Motsi.

Zimbabwe's steel imports remain significant, totaling US$256 million in 2024, with US$61.7 million recorded in the first quarter of 2025. The government has formed an inter-ministerial committee alongside stakeholders to identify and develop new markets for Zimbabwean steel products.

Economic analysts highlight the broader benefits of regional steel exports, noting they will reduce the country's import bill and boost foreign currency earnings. The positive ripple effects are expected to extend to job creation, not only within DISCO but also across downstream steel-related industries.

Development economist Knox Mushava explained, "The downstream industries will play a crucial role in adding value to the pig iron and steel billets produced by DISCO, fostering a more integrated and dynamic value chain within the Zimbabwean economy."

Experts emphasize steel's fundamental role in infrastructure and manufacturing due to its unmatched strength, durability, and versatility. It remains indispensable for construction, machinery, vehicles, household appliances, and technological components.

Prior to DISCO's emergence, Zimbabwe's steel sector heavily depended on recycled steel and imports to meet demand. DISCO's production of steel billets and pig iron is now providing local manufacturers with superior raw materials, marking a significant boost for the industry.

With DISCO's momentum building, Zimbabwe is poised to regain its standing as a regional steel powerhouse - sparking economic growth, industrial revitalization, and sustainable development across the country and beyond.