Source: Zim to build robust iron and steel industry | The Herald October 5, 2016
Martin Kadzere: Senior Business Reporter
ZIMBABWE is looking at building a robust iron and steel industry by opening up the sector to local and foreign investors, Industry and Commerce Minister Mike Bimha has said. In an interview on Monday, Minister Bimha said the sector, which had been dominated by the defunct Zimbabwe Iron and Steel Company had potential to grow the economy.Zimbabwe is estimated to have one of the largest iron ore reserves in the world.“We are now looking at the sector from a different perspective,” said Minister Bimha. “We had to rethink and we are now looking it from a broader perspective. It is no longer about Zisco only but we would like grow the sector by opening it up to local and foreign investors.
“We need to build a robust iron and steel industry and that is what we are working on.”
Zisco, the State owned integrated steel firm stopped operations about eight years ago after running into serious financial problems.
Efforts to revive the company, which used to be one of country’s biggest employers and a major economic force, failed after the deal with Essar Africa, which had committed to inject $750 million into the company went into problems mainly due to huge debts and subdued global steel prices.
The Government had agreed to sell 54 percent of its shareholding in Zisco and 80 percent of its equity in BIMCO, which holds the iron ore mineral rights, to Essar Africa.
The collapse of the deal with Essar Africa become the second major deal involving Zisco that ran into problems after another $400 million deal with Global Steel Holdings, also from India, failed under unclear circumstances in 2006. Zisco’s debt is estimated at $380 million.
Minister Bimha said Zisco and other players in the iron and steel sector would now be part of the broader plan that the Government was working on to grow the sector.
“There are products that Zisco had not been producing and the plan will address all those things,” he said.
Meanwhile, Minister Bimha said a number of local producers are approaching the ministry, seeking to have their products included in the Statutory Instrument 64 which restricts imports on good that can be manufactured locally. Most local producers have benefited from import restrictions, with some companies now operating at full capacity.
“The SI 64 has yielded some benefits and most companies are approaching us seeking protection.”
COMMENTS
“We need to build a robust iron and steel industry and that is what we are working on.”, said zanu pf minister Bimha.
Amazing; heeeee! It’s now about building “a robust iron & steel industry”. what has happened to the “robust agro-based & robust diamond-based industries? How about the “robust job-creation – 2 million jobs”, ” robust clamp-down on corruption”, “economic development”, blaa, blaaa, blaaa ….. ?
When is the shameless zanu pf & its lunatics, masquerading as ministers, going to deliver on all their “robust promises” which have been the order of the day since 1980? Nxaaaaa! shameless idiots!
If you come to a hut with a roof and doors, decent floor and even windows and chimneys and you proceed to stripe it of its roof, walls, windows and floors who in their normal mind would believe you if you say you want to build it again???
The former RISCO has gone the same way as Wankie Colliery, as soon as Government/Zanupf got their greedy fingers in the till it was a fore gone conclusion these Companies would be run into the ground, no suprises there!
So why hasn’t this already happened. They’ve had 36 years to do this. We demand the 2.2 million jobs that were promised us.
Their pronouncements are entirely shameless, which is a good indicator of their mental capacities.