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Zimbabwe's iron and steel sector to create 40 000 jobs

by Staff reporter
22 Oct 2023 at 04:10hrs | Views
The Dinson Iron and Steel Company (Disco) steelworks, valued at US$1.5 billion, situated near Mvuma in the Midlands province, is set to create nearly 40,000 new jobs, both directly and in downstream industries, by the year 2026.

This development in the engineering, iron, and steel sector is aligned with President Mnangagwa's goal to establish an upper middle-income economy by 2030, primarily driven by mining and other critical sectors such as agriculture.

Currently, the engineering, iron, and steel industry employs 13,000 people in the country. The introduction of these two steel giants will result in a more than 300 percent increase in employment in the sector over the next three years.

The new steel plant, being developed by Disco, a subsidiary of China's largest stainless steel manufacturer Tsingshan Holdings Group Limited, is expected to commence operations in December. The first phase of this steelworks will directly employ 4,000 people, translating to 24,000 jobs downstream.

The Disco project will be implemented in multiple phases, starting with a capacity of 600,000 tonnes per annum in the first phase, followed by 1.2 million tonnes in the second phase, 2.4 million tonnes in the subsequent phase, and eventually reaching five million tonnes in the final phase. By comparison, the Redcliff-based Zisco steel plant, which was once the largest north of Limpopo, produced one million tonnes annually and employed 5,000 people at its peak in the late 1990s. It is expected to resume operations in the next three years, initially employing 2,500 people directly and creating 15,000 jobs in downstream industries.

Kuvimba Mining House (KMH), Zimbabwe's largest mining group, signed a management contract with Zisco in August of the previous year, marking a significant step in the revival of the company. KMH has engaged Strategen Company of Germany as the lead consultancy for the steel manufacturer's rejuvenation.

The revival of Zisco, for which KMH will invest US$1 million, involves two segments: mining and the steel project. Buchwa Iron and Steel Company, Zisco's mining arm, is expected to resume limestone and iron ore mining operations at Ripple Creek and Buchwa in the Midlands province in the first quarter of the next year. Steel production is anticipated to resume in 2026, as limestone and iron ore are key raw materials in steel production.

According to the Engineering, Iron, and Steel Association of Zimbabwe (EISAZ) sector strategy for 2022-2026, around 50,000 jobs will be created throughout the value chain.

In an interview, EISAZ secretary-general Mr. Matthias Ruziwa expressed optimism about achieving these employment targets, particularly with the forthcoming commissioning of the Disco steel plant, which is expected to have a substantial impact on downstream industries.

The engineering, iron, and steel sector is integral to industrialization, providing essential inputs for the development of other industries such as construction, mining, and manufacturing. The absence of a robust engineering, iron, and steel industry has adversely affected the economy, with substantial steel imports, reaching over US$1 billion annually. Over 80 percent of industry players have relied on importing raw materials from South Africa, India, and China, which has led to heightened competition and elevated production costs.

According to Wilfred Motsi, the project director for Disco, the construction phase of the steel plant employed 1,700 people. During the initial phase of operations, the company expects to employ about 4,000 people directly and 24,000 indirectly.

Engineer Martin Manhuwa, Zisco's board chairperson, highlighted that Zisco will operate with modern technology to enhance operational efficiency and benefit from economies of scale when production resumes. He anticipates that Zisco will employ about 5,000 people directly and impact six times that number in downstream jobs. However, the specific figures will depend on the chosen technology pathway and feasibility studies. Zisco is considered a major employer and a catalyst for various industries in the country, particularly the manufacturing sector.

Source - SundayMail
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