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Zimbabwe steel sector poised for rebound
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Zimbabwe's steel industry is poised for a major revival following the Government's recent introduction of import licensing requirements for specific steel products. Industry stakeholders have welcomed the move, saying it will help curb excessive imports, strengthen local manufacturing, and unlock investment across the steel value chain.
The new regulations mandate import licences for selected iron and non-alloy steel products, including flat-rolled steel, hot-rolled and twisted bars, and rods. The Government says the move aims to improve regulation of steel imports and stimulate domestic production.
Once a regional powerhouse in iron and steel manufacturing, Zimbabwe's fortunes declined sharply after the collapse of the Zimbabwe Iron and Steel Company (Zisco) in 2008. However, recent developments - most notably the commissioning of the Dinson Iron and Steel Company (Disco), now the country's largest steel producer - mark a turning point for the sector.
"It's a dual win - protecting and developing our industry while opening doors for new players," said Mr Wilfred Motsi, operations manager at Dinson. He noted that similar protectionist measures have benefited neighbouring countries such as South Africa and Zambia. Tanzania is also considering raising steel import duties from 25 to 35 percent, aligning with Uganda and Kenya to strengthen local industries.
While welcoming Zimbabwe's new import restrictions, Mr Motsi urged the Government to go further by revising the licensing system for steel products not yet produced locally or those not currently covered under the new rules.
Mr Matthias Ruziwa, CEO of the Engineering Iron and Steel Association of Zimbabwe, said the new licensing regulations will improve capacity utilisation in domestic factories and reduce reliance on foreign imports. "By prioritising local production and curbing external procurement, Zimbabwe's steel sector is set to achieve greater self-sufficiency and contribute more robustly to the national economy," he said.
Zimbabwe imported steel and iron products worth over US$256 million last year, and US$61.7 million in the first quarter of this year alone — an import bill that stakeholders say must be curtailed if the sector is to grow.
Grindale Engineering CEO Mr Grison Muwidzi believes the licensing rules are a necessary step toward reviving the steel industry, but says more comprehensive support measures are required. "We need to replicate the integrated steel industry we had during the Zisco era, with strong companies along the value chain like Lancashire Steel, Haggie Rand, and Metal Box," he said.
With the availability of raw materials such as billets and pig iron from Dinson, Mr Muwidzi added, the focus should now shift to promoting value-addition industries that manufacture finished products. He stressed the importance of rebuilding a vertically integrated sector that supports jobs and innovation throughout the economy.
Zimbabwe Institute of Foundries chief operations officer Mr Dosman Mangisi said the import restrictions will stimulate the growth of related industries. Steel's strategic role in infrastructure, machinery, vehicles, and appliances underscores its potential as a key economic driver.
Prior to Disco's entry into the market, most steel manufacturers relied heavily on recycled materials or imported raw steel. The availability of locally produced billets and pig iron now gives manufacturers access to higher-quality inputs at competitive prices.
This transformation positions Zimbabwe to become a major regional supplier. According to ZimTrade, countries like Zambia, Botswana, Angola, the Democratic Republic of Congo, Malawi, Mozambique, and Namibia represent promising markets.
Zambia alone imported US$226 million worth of steel in 2020, much of it from distant suppliers like South Africa, China, Chile, and India. Mozambique imported 111,000 tonnes (US$99 million) in 2021, while Malawi brought in 39,000 tonnes worth US$83 million. The DRC and Namibia also reported significant imports from overseas suppliers.
With modern facilities such as the Manhize steel plant and shorter logistics chains to neighbouring markets, Zimbabwe has a competitive advantage. If harnessed effectively, the country could significantly displace imports in the region, boosting export revenues and fostering industrial growth across Southern Africa.
Industry leaders agree that with the right mix of policies, investment, and infrastructure, Zimbabwe's steel sector is set not only to rebound but to reclaim its status as a regional industrial powerhouse.
The new regulations mandate import licences for selected iron and non-alloy steel products, including flat-rolled steel, hot-rolled and twisted bars, and rods. The Government says the move aims to improve regulation of steel imports and stimulate domestic production.
Once a regional powerhouse in iron and steel manufacturing, Zimbabwe's fortunes declined sharply after the collapse of the Zimbabwe Iron and Steel Company (Zisco) in 2008. However, recent developments - most notably the commissioning of the Dinson Iron and Steel Company (Disco), now the country's largest steel producer - mark a turning point for the sector.
"It's a dual win - protecting and developing our industry while opening doors for new players," said Mr Wilfred Motsi, operations manager at Dinson. He noted that similar protectionist measures have benefited neighbouring countries such as South Africa and Zambia. Tanzania is also considering raising steel import duties from 25 to 35 percent, aligning with Uganda and Kenya to strengthen local industries.
While welcoming Zimbabwe's new import restrictions, Mr Motsi urged the Government to go further by revising the licensing system for steel products not yet produced locally or those not currently covered under the new rules.
Mr Matthias Ruziwa, CEO of the Engineering Iron and Steel Association of Zimbabwe, said the new licensing regulations will improve capacity utilisation in domestic factories and reduce reliance on foreign imports. "By prioritising local production and curbing external procurement, Zimbabwe's steel sector is set to achieve greater self-sufficiency and contribute more robustly to the national economy," he said.
Zimbabwe imported steel and iron products worth over US$256 million last year, and US$61.7 million in the first quarter of this year alone — an import bill that stakeholders say must be curtailed if the sector is to grow.
Grindale Engineering CEO Mr Grison Muwidzi believes the licensing rules are a necessary step toward reviving the steel industry, but says more comprehensive support measures are required. "We need to replicate the integrated steel industry we had during the Zisco era, with strong companies along the value chain like Lancashire Steel, Haggie Rand, and Metal Box," he said.
With the availability of raw materials such as billets and pig iron from Dinson, Mr Muwidzi added, the focus should now shift to promoting value-addition industries that manufacture finished products. He stressed the importance of rebuilding a vertically integrated sector that supports jobs and innovation throughout the economy.
Zimbabwe Institute of Foundries chief operations officer Mr Dosman Mangisi said the import restrictions will stimulate the growth of related industries. Steel's strategic role in infrastructure, machinery, vehicles, and appliances underscores its potential as a key economic driver.
Prior to Disco's entry into the market, most steel manufacturers relied heavily on recycled materials or imported raw steel. The availability of locally produced billets and pig iron now gives manufacturers access to higher-quality inputs at competitive prices.
This transformation positions Zimbabwe to become a major regional supplier. According to ZimTrade, countries like Zambia, Botswana, Angola, the Democratic Republic of Congo, Malawi, Mozambique, and Namibia represent promising markets.
Zambia alone imported US$226 million worth of steel in 2020, much of it from distant suppliers like South Africa, China, Chile, and India. Mozambique imported 111,000 tonnes (US$99 million) in 2021, while Malawi brought in 39,000 tonnes worth US$83 million. The DRC and Namibia also reported significant imports from overseas suppliers.
With modern facilities such as the Manhize steel plant and shorter logistics chains to neighbouring markets, Zimbabwe has a competitive advantage. If harnessed effectively, the country could significantly displace imports in the region, boosting export revenues and fostering industrial growth across Southern Africa.
Industry leaders agree that with the right mix of policies, investment, and infrastructure, Zimbabwe's steel sector is set not only to rebound but to reclaim its status as a regional industrial powerhouse.
Source - zimpapers
