Mnangagwa says iron, steel sector key to Zimbabwe's economic revitalisation

President Emmerson Mnangagwa has emphasized the critical role of Zimbabwe's iron and steel industry in transforming the national and regional economy, underscoring its potential to drive industrialisation and economic growth across the Southern African Development Community (SADC).

Speaking at the opening of the Iron and Steel Indaba in Kwekwe, President Mnangagwa decried the sector's current state, which forces Zimbabwe to spend over US$1 billion annually on iron and steel imports. The event, themed "Leveraging the Resurgence of Zimbabwe's Iron and Steel Industry," was attended by Vice President Constantino Chiwenga, Industry and Commerce Minister Mangaliso Ndlovu, and other senior government officials.

President Mnangagwa highlighted the historical significance of the iron and steel industry, citing Ziscosteel as a former cornerstone of Zimbabwe's industrial landscape. He noted that the sector's revival is essential for value addition and beneficiation, leveraging the country's abundant mineral resources, such as iron ore and chrome.

"The resurgence of this sector is of urgent necessity," said President Mnangagwa. "Our vision is to establish a robust and sustainable iron and steel industry that meets domestic demand and positions Zimbabwe as a regional manufacturing hub."

The President commended the operationalisation of the Dinson Iron and Steel Company in Manhize, Mvuma, by the Tsingshan Group, the largest steel producer in Sub-Saharan Africa. He described the investment as a vote of confidence in Zimbabwe's iron and steel sub-sector.

President Mnangagwa outlined the sector's multiplier effects, including its potential to boost manufacturing, create jobs, and modernize infrastructure. He cited statistics showcasing the recovery of Zimbabwe's manufacturing sector, with capacity utilisation increasing from 36.4% in 2019 to 53.2% in 2023. He also noted that locally produced goods now occupy 80% of shelf space in stores, up from 64% in 2019.

"Through deliberate policies, we are fostering the transformation of our economy from being resource-driven to a knowledge-based one, building step by step toward Vision 2030," he said.

As chair of SADC, Zimbabwe aims to align its industrialisation efforts with regional goals. President Mnangagwa urged stakeholders to adopt forward-thinking strategies and integrate new technologies such as artificial intelligence and digitalisation to remain competitive in the global economy.

"The Fourth Industrial Revolution is reshaping production and broadening market demands. Zimbabwe and SADC must not be left behind," he said.

The President stressed the importance of domesticated value chains, particularly in infrastructure development, agriculture, and energy. He highlighted the sector's role in advancing national projects like the Gwayi-Shangani and Tugwi-Mukosi dams, as well as the 720 MW power plant under construction in Hwange.

President Mnangagwa called for unity among industry players, academia, and government to develop a skilled workforce capable of sustaining the sector's growth. He also urged businesses to capitalize on the fiscal and non-fiscal incentives outlined in the 2025 National Budget.

Vice President Chiwenga echoed these sentiments, describing Dinson Iron and Steel's billion-dollar investment as a game-changer. He credited the President's engagement and re-engagement policies for attracting such investments.

"Dinson's presence will make Zimbabwe a major player in Africa's iron and steel industry," said VP Chiwenga.

The Iron and Steel Indaba is expected to accelerate the sector's revival, contributing to Zimbabwe's industrialisation and economic targets under Vision 2030. President Mnangagwa concluded by urging stakeholders to prioritize long-term solutions for the sector, ensuring its contribution to a prosperous and resilient economy.