Online Reporter
Sikhulekelani Moyo,Zimpapers Business Hub
FOUNDRY players have raised several issues, which they say are hindering the sector’s viability, hence reducing its ability to tap into the regional and international market.
Zimtrade recently hosted an iron and steel breakfast round table, focused on engaging with key stakeholders in the sector to understand the specific hurdles they face in exporting value-added products.
The aim was to collaboratively develop strategies to overcome these challenges and enhance the industry’s export capabilities.
In an interview, Zimbabwe Institute of Foundries (ZIF) chief operations officer Mr Dosman Mangisi said the local foundry is not yet capacitated to boost exports because of a number of challenges in the industry that are yet to be addressed.
Amongst other challenges, Mr Mangisi said there is a need for retooling in the sector, as most of the players still use old equipment, which affects production capacity and product quality.
He also said the high cost of doing business is hindering the industry’s growth, saying that they are calling for stakeholders to work together and form the iron and steel industry taskforce, which will look at imports and exports and the sector’s contribution to the gross domestic product (GDP).
“We are looking forward to support, to enhance export capabilities,” said Mr Mangisi.
“The issue of the ease of doing business is also affecting us; transport issues affect efficiency and the cost of doing business, and we would want to see the movement of goods from one place to another.
“Transport plays a very critical role in easing the cost, because we need to be competitive on the global market; these are issues that need attention.”
Mr Mangsis said the industry is grappling with the high cost of doing business, which leaves no room for innovation.
He said that alone affects efforts, saying that, for companies to be able to manufacture competitive products for export, it calls for an industrial revolution.
“We look forward to revolutionising these things,” he said.
“The other key duty for the taskforce, we are going to set up, is also looking at how to revolutionise the sector so that it is appreciated and it is saleable to the policy makers.”
He said that with the current casting ratio, which stands at 1:10 with South Africa and 1:60 with India, exporting will not be possible until the sector is revolutionised.
Other issues raised by Mr Mangisi include electricity tariffs, which he said are high for the industry, raw material availability, and the need to establish a strong relationship with the Disco Iron and Steel Company.
Zimbabwe is reclaiming its space as a giant steel producer and supplier of value-added products in Africa, as evidenced by the progressive transformation of the Dinson Iron and Steel Company (Disco) Manhize Steel Plant in Mvuma, Midlands province, which continues to expand its production levels while creating jobs for thousands of locals.
Commissioned in 2022, the US$1,5 billion investment is a shining example of the pro-business reforms ushered in by the Second Republic led by President Mnangagwa, buttressing the re-industrialisation drive anchored on higher domestic production, value addition, and beneficiation.
Iron and steel are one of the 10 priority value chains under National Development Strategy 1, which is meant to drive industrialization and create jobs, leveraging the availability of resources in the country.
