Steel import rules tightened to boost local production

Source: Steel import rules tightened to boost local production – herald

Judith Phiri

Bulawayo Bureau

Zimbabwe’s ambition to become a continental steel powerhouse has received a major policy boost, with the Government restricting the importation of selected steel products in a bid to protect and support local manufacturers.

The move, gazetted under Statutory Instrument (SI) 46 of 2025, an amendment to the Control of Goods (Open General Import Licence) regulations, now requires importers to seek licences before bringing specified steel products into the country.

The development is widely seen as a strategic intervention to back the country’s fast-growing steel industry, particularly the massive Dinson Iron and Steel Company (DISCO) project in Manhize.

DISCO, already producing steel bars in its first phase, is projected to churn out 600 000 tonnes annually, with output expected to increase to 1,2 million tonnes and eventually reach 5 million tonnes, positioning Zimbabwe as one of Africa’s leading steel producers.

In an interview with our Bulawayo Bureau yesterday, Industry and Commerce Minister Mangaliso Ndlovu said the SI updates the long-standing 1974 regulation to include key steel categories such as flat-rolled steel under 600mm in width, hot-rolled and forged bars and rods, steel angles and structural sections.

“We have the largest steel plant in Sub-Saharan Africa at a time when neighbouring countries like South Africa are facing challenges in their steel sectors. We, therefore, need to stop speculative imports that undermine our local capacity,” said Minister Ndlovu.

He added that the measure would curb the influx of steel from countries such as Zambia, which has imposed tariffs on local products, thereby distorting fair competition.

Minister Ndlovu said importers must now justify their need to import specified steel products.

“You have to apply for a licence which allows us to have a conversation with those who want to import steel products to understand why they are importing,” he said.

“This gives us a better understanding of the market dynamics and allows us to protect our emerging local steel value chain.

“We believe that a lot of people will not give us any good reason for importing.”

Minister Ndlovu said the new regulation is a tool to protect the local industry and promote the growth of the steel value chain.

The policy shift has been welcomed across various industrial sectors.

Zimbabwe Institute of Foundries (ZIF) chief operations officer Mr Dosman Mangisi, who also serves as secretary-general of the Junior Chamber of Mines Zimbabwe, called it “a critical step” in shielding the domestic economy from unnecessary imports.

“It is very important in protecting the local economy in the iron and steel industry. Reducing imports into the country is critical and this will allow Zimbabwe to increase its exports as local production of steel is on the rise,” he said.

Mr Mangisi said promoting import substitution was key to conserving foreign currency, while on the other hand, emerging local manufacturers will be shielded from foreign competition.

Dr Shynet Chivasa, a business analyst at Lupane State University, echoed the sentiments, saying the timing of the SI supports Zimbabwe’s broader industrialisation strategy.

He said that policy encourages local value addition, investment in manufacturing, and the creation of sustainable jobs.

“This move by Government supports local industries through value addition, potentially giving local producers a competitive advantage. It encourages investment in the steel and manufacturing sectors, and aligns with Zimbabwe’s industrialisation agenda including promoting sustainable employment.”

Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Chapter past vice-president and businessman, Mr Louis Herbst commended the targeted nature of the new import restrictions, saying regulating imports is essential to the local manufacturing landscape.

“As an industrialist and innovation activist, I believe this is a strategic move and the inclusion of specific products in the First Schedule, particularly those related to flat-rolled products and various forms of iron and non-alloy steel, highlights a strategic move to regulate imports that are essential to our local manufacturing landscape,” he said.

“I fully support the aims of the Control of Goods (Open General Import Licence) (Amendment) Notice, 2025, and I urge policymakers to ensure that the implementation of these regulations is balanced with the needs of the industrial sector.”

Mr Herbst said a collaborative approach involving industry stakeholders will be vital to navigate the complexities of these changes while fostering an environment conducive to innovation and sustainable industrial growth.