‘Steel, key in Zimbabwe industrial landscape’

Patrick Chitumba and Freedom Mupanedemo
PRESIDENT Mnangagwa has stressed the crucial role that reviving Zimbabwe’s iron and steel industry will play in boosting the country’s economy and supporting the industrial transformation of SADC.
In his keynote address at the Iron and Steel Indaba held in Kwekwe yesterday, President Mnangagwa presented a strategic plan for the revival of the sector, with a focus on meeting domestic demand and positioning Zimbabwe as a key regional manufacturing hub.

The President emphasised the urgent need for a resurgence in the iron and steel sector, noting that Zimbabwe is currently one of the largest net importers of steel products in the region, having spent more than US$1 billion on imports over the past six years.
This reality is undesirable given Zimbabwe’s significant mineral resources, including iron ore and chrome, which could be utilised to develop a thriving domestic industry and reduce the country’s reliance on imports.

“As you are aware, the engineering, iron and steel industry has always been a cornerstone of Zimbabwe’s industrial landscape.
“In the past this was through the operations of Zisco Steel, then the largest steelworks in Zimbabwe,” he said. “In light of this, the resurgence of this sector is of urgent necessity.
“This Indaba is, therefore, taking place at an opportune time. It is in line with our vision to ultimately establish a robust and sustainable iron and steel industry that meets domestic demand, while also positioning Zimbabwe as a regional manufacturing hub.”

President Mnangagwa identified the commencement of operations at Dinson Iron and Steel Company, spearheaded by Chinese conglomerate, Tsingshan Group, in Manhize, Mvuma, as a transformative step for the sector.
Resting on the mantle of Sub-Saharan Africa’s biggest steel behemoth and the sixth worldwide, the President commended the investment for underlining the confidence of a major global industry behemoth in Zimbabwe’s iron and steel subspace.

The development is in keeping with the Second Republic’s aspirations of spurring a robust and competitive industrial foundation.
“The investment by Tsingshan Group, which is the largest steel giant in Sub-Saharan Africa, and the sixth leader in the world, is a show of confidence, by one of the global industry leaders, in our iron and steel sub-sector,” he said.

President Mnangagwa highlighted the immense potential of Zimbabwe’s industrial sector, applauding its significant role in value addition, beneficiation, and support of other industries such as agriculture, construction, energy, and transport. The President expressed his satisfaction with the ongoing revival of the manufacturing sector, citing a remarkable growth in capacity utilisation from 36,4 percent in 2019 to 53,2 percent in 2023.

Capital investments worth a staggering US$747 million have been pumped into the sector over the past three years, with locally produced goods now occupying 80 percent of the shelves, up from 64 percent in 2019.

In light of these notable developments, President Mnangagwa emphasised that Zimbabwe, being the current chair of SADC, is well-placed to spearhead both national and regional industrialisation agendas.
“Further, the present round of the Industrial Revolution is moving at a heightened pace, characterised by increased digitalisation, artificial intelligence, and innovation.
“These are in turn transitioning traditional modes of production as well as broadening the range of products required by the markets.

“I, thus, challenge stakeholders in this sector to take leadership and implement forward-looking business models which impact beyond our borders and the continent.
“Zimbabwe and the SADC region are part of the global village and should not be left behind,” he declared.
To support industrial growth, the President underlined ongoing infrastructure projects, including the Shurugwi-Mhandamabwe Road, which he commissioned yesterday, and key energy developments such as the new 720MW power plant in Hwange, which will aid the country’s drive for a robust and growing iron and steel sector anchored on broader value chains.

“With regards to the key industry enablers, infrastructure development is ongoing with both major highways and trunk roads being modernised. Later today (yesterday), I will be commissioning the Shurugwi-Mhandamabwe Road which is an important route for this and other sectors.
“Other national development projects such as the Gwayi- Tshangani Dam in Matabeleland North, and Tugwi Mukosi Dam, among others, are important for the realisation of our national targets,” said President Mnangagwa.

He challenged stakeholders to work collaboratively, modernise legal frameworks, and strengthen partnerships between industry and academia to drive innovation.
“Given that energy is the lifeblood of industrialisation and also a critical input for the iron and steel industry, I challenge stakeholders to collaborate, from the onset, towards innovative energy solutions, including renewable energy and energy-efficient technologies,” said President Mnangagwa.

“A skilled workforce equipped with modern technical expertise is an integral component for sustaining innovation, productivity, and growth of the iron and steel industry. Hence, investments in human capital development are essential, as well as partnerships between industry players and the academia.”
The President reaffirmed his administration’s commitment to providing a supportive policy environment, encouraging investment, and addressing industry challenges through dialogue.

“We are meeting today after my Government, through Treasury, recently presented an elaborate 2025 National Budget, which is both citizen and pro-business-centric. It is my sincere hope that as businesses, you will capitalise on the wide spectrum of both fiscal and non-fiscal incentives availed transformation,” he said.
“As we engage and deliberate throughout this Indaba, it is critically important that we collectively find lasting solutions to resuscitate and grow the iron and steel sector. The generality of our population counts on our unity of purpose to deliver a prosperous economy, sector by sector.”

On its part, President Mnangagwa said the Second Republic continues to take a robust approach to ensure the achievements outlined in the National Development Strategy 1.
“We have equally laid a solid foundation for accelerated socio-economic development and a sustained growth trajectory, under the upcoming National Development Strategy 2. A supportive policy environment to promote investments as well as increase value addition and beneficiation is assured under my administration,” he said.

“We are always open for dialogue and guarantee responsive measures in addressing challenges faced by local industry and commerce.”
He said the country’s vast natural resources and youthful population should be continuously harnessed for sustainable industrial transformation.
“It is a misnomer that we continue to lose millions every year on the importation of iron and steel and other related products. This is despite the numerous investments within our manufacturing sector.
“It is on this background that the Second Republic, resolved to facilitate a vibrant, dynamic, and competitive industrial base, driven by smart and strategic value-chain linkages.

“We are fostering the structural transformation of our economy by putting in place deliberate and systematic measures to graduate from being resource-driven to a knowledge-based economy,” said President Mnangagwa.

“This will be achieved through incremental step-by-step, brick-upon-brick, and stone-upon-stone processes.”
The event, held under the theme “Leveraging the Resurgence of Zimbabwe’s Iron and Steel Industry”, was organised by the Ministry of Industry and Commerce in collaboration with the Confederation of Zimbabwe Industries (CZI) and the Engineering, Iron and Steel Association of Zimbabwe.
Among those who attended were Vice-President Dr Constantino Chiwenga, Industry and Commerce Minister Mangaliso Ndlovu, captains of industry and other players in the mining sector.