Parly pushes for urgent overhaul of Zimbabwe's outdated steel laws

Parliament has called for swift amendments to Zimbabwe's antiquated Iron and Steel Act of 1942, warning that the outdated legislation is stifling the country's steel industry, undermining export competitiveness, and hindering broader economic growth.

Clemence Chiduwa, chairperson of the Parliamentary Portfolio Committee on Industry and Commerce, highlighted how the current legal framework treats steel products as minerals, forcing all steel exports through the Minerals Marketing Corporation of Zimbabwe (MMCZ). He described this system as inefficient, impractical, and damaging to Zimbabwe's industrial prospects.

"Zimbabwe is still operating under a steel law that dates back over 80 years," Chiduwa said. "The law classifies products like rebar as minerals that must be monopolised by the state, funneling all exports through MMCZ. This archaic approach severely limits growth and competitiveness in the steel sector."

Chiduwa underscored growing frustration among industry players over MMCZ's slow and error-prone processes. Buyers from neighbouring countries such as Mozambique and Malawi often face lengthy delays and cumbersome registration procedures, leading to lost orders and diminished trust in Zimbabwean steel producers.

"Many regional clients are unaware MMCZ is the sole export agent for steel from Zimbabwe," Chiduwa explained. "They expect prompt delivery after payment, but MMCZ's client registration alone can take more than a month. Mistakes in export documentation and delays in critical permits such as CD1 forms and Bills of Entry further exacerbate the problem."

Dinson Iron and Steel Company (DISCO), Zimbabwe's largest steel producer based in Manhize, is seen as vital to the country's industrial revival. Chiduwa warned that without reform, DISCO risks collapsing like the Zimbabwe Iron and Steel Company (ZISCO), which failed due to neglect and outdated policies.

"We cannot afford to let DISCO suffer ZISCO's fate," he said. "Our policies must support rather than suffocate industrial champions."

He contrasted MMCZ's sluggish steel export system with the streamlined process for other industrial goods, which private customs clearance firms handle efficiently in about a week.

"While general industrial exports take roughly a week, steel exports controlled by MMCZ drag on for over a month, assuming no mistakes," Chiduwa noted. "This puts Zimbabwe at a disadvantage in a region rich in steel producers."

Parliament is urging the Ministry of Industry and Commerce to expedite review and amendment of the Iron and Steel Act to better align with Zimbabwe's National Development Strategy 1 (NDS1) and industrial ambitions.

"Steel is fundamental to industrialisation, and the legal environment must reflect that by enabling competitiveness on regional and global markets," Chiduwa said.

He proposed key reforms including modernising the Iron and Steel Act, revising Statutory Instrument 63 of 2009, reclassifying steel products to remove their mineral status, and ending MMCZ's exclusive control over steel exports.

"Reforming SI 63 and redefining steel's classification is crucial," Chiduwa stressed. "Steel must be recognised as an industrial product, not a raw mineral, to unlock growth and export potential."

As Zimbabwe seeks to establish itself as a regional steel producer with projects like DISCO, industry experts warn that without swift policy change, the sector's full potential will remain unrealised.

"Zimbabwe has the resources and demand to build a world-class steel industry," Chiduwa concluded. "What we lack are efficient, modern policies - Parliament is ready to drive change, but the Ministry must act fast."