Online Reporter
Nelson Gahadza
Zimpapers Business Hub
The Government has said it is working on various interventions that include policy support for the engineering, iron and steel industry, which is the backbone of the country’s industrialisation agenda.
The industry provides the steel and machinery to build roads, dams, and bridges, the tools that power mines and farms, and the components that feed into energy, automotive, and manufacturing industries.
Industry and Commerce Minister Mangaliso Ndlovu, at the launch of the Engineering, Iron and Steel Industry status report 2025, said the sector currently employs just over 15 000 workers and generates around US$640 million annually, operating at 50 percent capacity utilisation.
“The report provides policymakers with evidence-based insights to guide our interventions. It highlights the challenges confronting the sector, such as inconsistent power supplies, high electricity tariffs, stiff competition from cheap imports, and limited access to affordable and long-term financing, which affect the sector’s growth,” he said in a speech read on his behalf by permanent secretary in the ministry Dr Thomas Utete Ushe.
Minister Ndlovu said some of the interventions the Ministry is undertaking to revitalise the vital sector include the drafting of a new Iron and Steel Bill, which will provide a comprehensive legal framework to guide its growth.
“As part of this process, we recently dispatched a technical team to Turkey on a benchmarking study tour. Turkey’s iron and steel industry has transformed itself into a globally competitive sector through value addition, integrated value chains, and strategic public-private partnerships.
“The lessons drawn are being fed into the design of our broader industrialisation strategy, ensuring Zimbabwe adopts global best practices while tailoring them to local realities,” he said.
He added that these sector-specific measures are part of a broader national industrialisation agenda, and under the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP 2024-2025), implementation is progressing well, with 65 percent of activities completed across key sectors such as steel, cement, pharmaceuticals, and fertilisers.
Minister Ndlovu also noted that the report points towards existing opportunities that must be seized, and this entails leveraging abundant iron ore and coal resources and capitalising on the commissioning of the Dinson Iron and Steel Company (DISCO).
“Furthermore, there are huge prospects for tapping into the growth of mining and infrastructure development and positioning Zimbabwe to participate in new global value chains such as electric vehicles and renewable energy,” he said.
The industry minister highlighted that the new investments, particularly Dinson’s 600 000 tonnes per annum integrated steel plant in Mvuma, were beginning to produce pig iron, billets, and re-bars, offering low-cost, quality feedstock for downstream industries.
“This is a turning point. If fully revitalised, the sector could employ over 30 000 people, generate more than US$8 billion annually, and serve as a cornerstone of Vision 2030,” said Minister Ndlovu.
Engineer Lloyd Nyemba, presenting the report, recommended consolidation of primary steel production and enhancement of competitiveness, leveraging the abundant and high-quality raw materials, which include coking coal, iron ore and limestone, amongst others.
He said the different mix of primary steel producers, consisting of giants like ZISCO and DISCO and the small-scale players like Steelmakers, Steel Brand, Haumin and Panelink, was a healthy mix which must be supported at the policy level to ensure operational flexibility and resiliency in turbulent times, as well as building a locally competitive engineering, iron and steel sector.
“Competitiveness enhancement is very crucial considering that there exists globally an overproduction of steel, with excess capacity of over 600 tonnes per annum. Therefore, cost and quality competitiveness are a must for the sector to compete at local, regional and global levels,” he said.
The engineer noted that capacitation of downstream players in the steel value chain is also crucial in that a massive scale of deindustrialisation was observed and is continuing, with many companies either scaling down, closing down, or transforming themselves into traders of imported goods rather than manufacturers.
He said competition from imports was just too stiff, and the costs and risks associated with local production continue to increase.
“Therefore, the strategic industry must be capacitated to invest in new, efficient and modern technology; otherwise, there will not be local offtake of feedstock from the newly commissioned DISCO Steel Plant,” he said.
Eng Nyemba said the formation of strategic market-driven value chain clusters driven by common goals is recommended, further noting that policy support is vital to enhance the competitiveness of the sector.
According to Eng Nyemba, Zimbabwe’s steel industry is also poised for growth, driven by opportunities in the mining and agriculture sectors.
“The mining sector, which is expected to reach US$12 billion, not only consumes steel during the construction phase but also during operation, with continuous consumption of products like meal bowls and conveyance systems,” he said.
Eng Nyemba also noted that Zimbabwe has a huge opportunity to tap into the emerging sub-sector of electric vehicles and the solar value chain.
“The emergence of electric vehicles triggers the engineering and steel value chain, and we need to collaborate with different ministries to ensure that e-mobility emerges strong,” he said.
Engineering Iron and Steel Association of Zimbabwe (EISAZ) chief executive Mr Matthias Ruziwa said that the sector is not just an industry but the very framework upon which Zimbabwe’s future will stand.
“The sector is the silent architect of progress, shaping the country’s bridges, powering its factories, equipping its mines, and sustaining its farms.
“It is engineering that designs, iron that improves, and steel that strengthens, together forming the backbone of our modern economy,” he said.
The report provides a comprehensive assessment of the sector’s current state and offers actionable recommendations to strengthen collaboration and competitiveness.
Mr Ruziwa emphasised that the sector is crucial to Zimbabwe’s aspirations for modernisation and industrialisation and that its renewal is essential for the country’s future prosperity.
He urged industry stakeholders to commit to the sector’s renewal, saying that progress begins with commitment and that the future is not given; it is built piece by piece, decision by decision, and partnership by partnership.
The report’s findings and recommendations are expected to inform policy and industry decisions, driving growth and development in the sector.
