News / National
Zimbabwe eyes new steel ventures as Ziscosteel's demise remains unresolved
08 Mar 2025 at 14:52hrs | Views
In a striking display of priorities, government and Zanu-PF officials are extolling new industrial projects while leaving unresolved the fate of Zimbabwe's once-proud steel manufacturer, Ziscosteel. Once a backbone of the national economy, Ziscosteel has long been crippled by extended periods of mismanagement, corruption, and government interference.
Zanu-PF spokesman and former minister Chris Mutsvangwa has recently been vocal about the Manhize steel project in Mvuma, Midlands Province, touting it as a key element in the country's industrial revival. Only last week, President Emmerson Mnangagwa inaugurated the US$3.6 billion Palm River Energy project in Beitbridge—a massive energy industrial park projected to transform the southern border town and inject fresh momentum into Zimbabwe's mining and energy sectors.
However, critics argue that while these new projects promise future development, they ignore the pressing need to address Ziscosteel's collapse—a facility that once symbolized the nation's industrial might.
Once the pride of Zimbabwe's industrial sector, Ziscosteel's decline began under the regime of former President Robert Mugabe and continued under Mnangagwa's administration. The company suffered from entrenched mismanagement, corrosive corruption, and nepotism, leading to inefficient operations and substantial financial losses. Lack of investment in new technology and equipment further undermined its competitiveness in the global steel market.
Zimbabwe's broader economic challenges—including hyperinflation, currency volatility, and a shrinking GDP—exacerbated Ziscosteel's struggles. Government interference, marked by the appointment of unqualified personnel and the pervasive influence of Zanu-PF cronies, severely hampered the company's ability to operate effectively.
While several efforts to revive Ziscosteel have been attempted, the road to recovery remains long and challenging. The company's destruction serves as a stark reminder of the vital importance of sound management, robust investment, and transparent governance in industrial development and national economic stewardship.
Industry experts warn that Zimbabwe's prospects in steel production would be far brighter if the government had, at the very least, maintained or invested in Ziscosteel to transform it into a regional industrial giant. Instead, the focus appears to be shifting towards new ventures, leaving the restoration of a once-critical asset unresolved.
As the government champions the potential of new projects like Manhize and Palm River Energy, the legacy of Ziscosteel stands as a cautionary tale—a reminder of how mismanagement and corruption can derail even the most promising industrial enterprises.
Zanu-PF spokesman and former minister Chris Mutsvangwa has recently been vocal about the Manhize steel project in Mvuma, Midlands Province, touting it as a key element in the country's industrial revival. Only last week, President Emmerson Mnangagwa inaugurated the US$3.6 billion Palm River Energy project in Beitbridge—a massive energy industrial park projected to transform the southern border town and inject fresh momentum into Zimbabwe's mining and energy sectors.
However, critics argue that while these new projects promise future development, they ignore the pressing need to address Ziscosteel's collapse—a facility that once symbolized the nation's industrial might.
Once the pride of Zimbabwe's industrial sector, Ziscosteel's decline began under the regime of former President Robert Mugabe and continued under Mnangagwa's administration. The company suffered from entrenched mismanagement, corrosive corruption, and nepotism, leading to inefficient operations and substantial financial losses. Lack of investment in new technology and equipment further undermined its competitiveness in the global steel market.
Zimbabwe's broader economic challenges—including hyperinflation, currency volatility, and a shrinking GDP—exacerbated Ziscosteel's struggles. Government interference, marked by the appointment of unqualified personnel and the pervasive influence of Zanu-PF cronies, severely hampered the company's ability to operate effectively.
While several efforts to revive Ziscosteel have been attempted, the road to recovery remains long and challenging. The company's destruction serves as a stark reminder of the vital importance of sound management, robust investment, and transparent governance in industrial development and national economic stewardship.
Industry experts warn that Zimbabwe's prospects in steel production would be far brighter if the government had, at the very least, maintained or invested in Ziscosteel to transform it into a regional industrial giant. Instead, the focus appears to be shifting towards new ventures, leaving the restoration of a once-critical asset unresolved.
As the government champions the potential of new projects like Manhize and Palm River Energy, the legacy of Ziscosteel stands as a cautionary tale—a reminder of how mismanagement and corruption can derail even the most promising industrial enterprises.
Source - online
