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Zimbabwe govt still struggling to revive ZISCO Steel
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Years after pledging to revive the defunct ZISCO Steel, the Zimbabwean government is still grappling to present a clear, actionable plan for restoring the once-iconic steel manufacturer to its former glory.
ZISCO Steel, formerly a regional industrial giant, ceased operations in 2008 due to chronic financial challenges, mismanagement, and underinvestment, leaving thousands jobless and crippling Zimbabwe's domestic steel supply chain.
During a recent Parliamentary session, Industry and Commerce Minister Mangaliso Ndlovu was grilled by Mbizo legislator Corban Madziwanyika on tangible progress toward the company's revival. However, the minister's response offered little clarity, with broad references to fragmented initiatives and yet-to-be-finalised partnerships.
"The coming on board of Dinson Iron and Steel Company presents a unique opportunity to build synergies with ZISCO and other downstream industries such as Lancashire Steel," Ndlovu said.
He revealed that the government is pursuing three main initiatives to aid the revival of the company, but critics argue the efforts remain disjointed and slow-moving.
The first project involves revamping Lancashire Steel's wire mill plant, expected to resume production of wire rods, drawn wire, barbed wire, and galvanised wire. Ndlovu said this would create over 20 jobs and support supply chains in both upstream and downstream industries.
The second initiative focuses on establishing a limestone beneficiation plant at BIMCO, a ZISCO subsidiary. The plant would produce burnt lime and construction aggregates. Ndlovu also disclosed that a prior management contract with Kuvimba Mining House had been terminated due to non-performance, leaving ZISCO to resume self-management.
"This means the ZISCO board and management have regained urgency to manage and control its own affairs," said Ndlovu.
The third aspect involves crafting a Memorandum of Understanding (MoU) among steel producers to eliminate product duplication and foster complementarity. He noted that Dinson Iron and Steel Company would focus on pig iron and steel billets, while ZISCO would concentrate on producing shafts, beams, angles, and flat sections.
Ndlovu emphasized that ZISCO is currently mobilising resources to revive a kiln for limestone beneficiation into quick lime, a critical input in steelmaking and cement production.
Despite the roadmap, observers note that no definitive timelines, funding commitments, or investor agreements have been presented to date. The absence of a concrete "once-off" solution, as initially promised by the government, continues to raise concerns over whether ZISCO's revival remains a realistic goal or a political soundbite.
ZISCO Steel, formerly a regional industrial giant, ceased operations in 2008 due to chronic financial challenges, mismanagement, and underinvestment, leaving thousands jobless and crippling Zimbabwe's domestic steel supply chain.
During a recent Parliamentary session, Industry and Commerce Minister Mangaliso Ndlovu was grilled by Mbizo legislator Corban Madziwanyika on tangible progress toward the company's revival. However, the minister's response offered little clarity, with broad references to fragmented initiatives and yet-to-be-finalised partnerships.
"The coming on board of Dinson Iron and Steel Company presents a unique opportunity to build synergies with ZISCO and other downstream industries such as Lancashire Steel," Ndlovu said.
He revealed that the government is pursuing three main initiatives to aid the revival of the company, but critics argue the efforts remain disjointed and slow-moving.
The second initiative focuses on establishing a limestone beneficiation plant at BIMCO, a ZISCO subsidiary. The plant would produce burnt lime and construction aggregates. Ndlovu also disclosed that a prior management contract with Kuvimba Mining House had been terminated due to non-performance, leaving ZISCO to resume self-management.
"This means the ZISCO board and management have regained urgency to manage and control its own affairs," said Ndlovu.
The third aspect involves crafting a Memorandum of Understanding (MoU) among steel producers to eliminate product duplication and foster complementarity. He noted that Dinson Iron and Steel Company would focus on pig iron and steel billets, while ZISCO would concentrate on producing shafts, beams, angles, and flat sections.
Ndlovu emphasized that ZISCO is currently mobilising resources to revive a kiln for limestone beneficiation into quick lime, a critical input in steelmaking and cement production.
Despite the roadmap, observers note that no definitive timelines, funding commitments, or investor agreements have been presented to date. The absence of a concrete "once-off" solution, as initially promised by the government, continues to raise concerns over whether ZISCO's revival remains a realistic goal or a political soundbite.
Source - NewZimbabwe
