adminZimbabwe Steel (Pvt) Ltd after selling its 54 percent stake in the steel giant to Indian company Essar Global.
In a letter addressed to Industry and Commerce Minister Welshman Ncube, the AAG secretary for Kwekwe, Mr Owen Matava, said the deal between Government and Essar will go a long way in boosting the growth and development of Kwekwe and the country at large.
“We appreciate the effort made by our Government through the Ministry of Industry and Commerce to stir the local industry out of the shadow of the ghost of economic eclipse.
“We are also glad that our youths and the people of Kwekwe will benefit a lot in terms of employment.
“We believe the resuscitation of the steel giant, will improve the growth and development of Kwekwe and the country at large,” said Mr Matava.
However, he highlighted that after weighing the positives against the negatives of the deal, there are some issues that should be considered and addressed by the Ministry of Industry and Commerce.
“As outlined in the proposed Supply and Distribution and Empowerment model by the Reserve Bank of Zimbabwe Governor, Dr Gideon Gono, that 75 percent of raw materials and inputs should be from local companies.
“Our position is that at least 45 percent of the 75 percent of raw materials and inputs must be sourced from within Kwekwe and the remaining 30 percent from around the country,” he said.
Mr Matava indicated that this would allow the growth of indigenous business people particularly in Kwekwe.
He also added that at least 70 percent of the entire workforce should be recruited from the Midlands province to benefit local job seekers.
“As for the US$10 million facility for the youth, women and small to medium enterprises, our position is that at least 50 percent of that facility must benefit Kwekwe and the Midlands Province since the resources are being extracted from the Midlands province,” he said
Online Reporter