Iron, steel sector key to economic revitalisation: President

Patrick Chitumba and Freedom Mupanedemo

PRESIDENT Mnangagwa has underscored the importance of the iron and steel industry in Zimbabwe’s economic revitalisation, highlighting its vast potential to transform, not only the country’s economy, but that of the entire SADC region.

The President said the industry’s current state was worrisome, with Zimbabwe spending in excess of US$1 billion on importation of iron and steel.

He was speaking at a gathering to officially open the Iron and Steel Indaba which is underway at a hotel in Kwekwe.

In attendance were Vice President Constantino Chiwenga, Industry and Commerce Minister Mangaliso Ndlovu and other senior Government officials.

“It is my singular honour and privilege to officiate at this Iron and Steel Indaba here in Midlands Province, being hosted under the theme, ‘Leveraging the Resurgence of Zimbabwe’s Iron and Steel Industry’. 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 Ziscosteel, then the largest steelworks in Zimbabwe,” he said.

President Mnangagwa said the sector holds immense multiplier effects in promoting value addition and beneficiation by leveraging the country’s expansive mineral resources, such as iron ore and chrome, among others.

“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,” he said.

The President added that the recent operationalisation of the Dinson Iron and Steel Company in Manhize, Mvuma, has significantly increased the prospects of the sector.

“The investment by Tsingshan Group, which is the largest steel giant in Sub-Saharan Africa, and the 6th 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.

The iron and steel value chains, the President added, are among key sectors identified to accelerate the transformation and growth of the manufacturing sector.

“Through the requisite policy mix, our manufacturing has been on the rebound. Capacity utilisation increased from an average of 36.4 percent in 2019 to 53.2 percent in 2023, while capital investments in the sector amounted to US$747 million over the past three years. Shelf occupancy of locally produced goods rose from about 64 percent to 80 percent in 2019 and 2023, respectively,” he said.

Furthermore, President Mnangagwa said, the manufacturing sector’s contribution to overall national employment remains on a positive growth trajectory from 7.5 percent in 2019 to 9.7 percent in 2023.

He said the vast natural resources and a youthful population should be continuously harnessed for sustainable industrial transformation in the country.

“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 against 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 structural transformation of our economy by putting in place deliberate and systematic measures to graduate from being resource-driven to a knowledge-based economy. This will be achieved through incremental step-by-step, brick-upon-brick, and stone-upon-stone processes,” President Mnangagwa said.

The Iron and Steel indaba is thus expected to speed up the realisation of targets in the critical mining sector and the economy as a whole, towards Vision 2030.

From a regional perspective, Zimbabwe, as the current chair of SADC, has the opportunity to drive both the national and regional industrialisation agenda.

“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,” said President Mnangagwa.

“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 said the domestication of the value chains and value addition must be expedited, adding that the sector is integral for the resuscitation and modernisation of the national railway network, as well as foundry and fabrication of industrial equipment for the transport and energy sectors, among others.

In the agriculture sector, President Mnangagwa said iron and steel products are essential to counter the dire consequences of climate change through expanding the country’s irrigation infrastructure to build resilience, while also securing farm land through appropriate boundary fences.

“Similarly, our construction sector, other infrastructure such as dams, modern roads and bridges, among other upstream, downstream and main-stream products, all depend on the viability of this sector. Great is the task before you, hence the need to have unity of purpose and collaboration. This Indaba should merely be the first step. The sector cannot afford to work in silos but must be complementary in approach, leveraging on the various technical resources and skills that reside within different entities in the industry,” he said.

President Mnangagwa said to scale up efforts in this regard, it is critically important that the strategies to resuscitate and grow the sector are holistic, well-co-ordinated and focused on the overall national good.

The President, who later in the day commissioned the Shurugwi-Mhandamahwe road, said other national development projects such as the Gwayi-Shangani Dam in Matabeleland North, and Tugwi Mukosi Dam among others, are important for the realisation of national targets.

He said energy projects like the new 720 MW power plant under construction in the Hwange area, will aid the drive for a robust and growing iron and steel sector anchored on broader value chains.

“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 academia,” said President Mnangagwa.

He said the Indaba is taking place after the 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 for sustainable economic development. 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,” President Mnangagwa said.

Addressing the same gathering, VP Chiwenga said the entry of Dinson Iron and Steel into Zimbabwe was a game-changer which will see the country becoming one of the major producers of iron and steel products.

He said it was through President Mnangagwa’s engagement and re-engagement drive that Dinson invested in the country.

“It is through your engagement and re-engagement efforts, Your Excellency, that Dinson Iron and Steel Company in Manhize, Mvuma set up a billion-dollar plant which will result in the country becoming a major player in the iron and steel industry in Africa,” he said.