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Tapiwanashe Mangwiro and Francis Gakanje
ZIMBABWE steel imports are set to decline during the year due to an increase in local supply spearheaded by the US$1 billion Manhize steel plant that is owned by Dinson Iron and Steel Company (Disco).
According to the latest figures from the Zimbabwe National Statistics Agency, the country imported 64 322 tonnes of steel and iron worth US$61,2 million in the first quarter of the year.
Of the total, 20 954 tonnes of iron and steel worth US$18,5 million were imported in January, 21 483 tonnes totalling US$22,5 million in February and 21 885 tonnes worth US$20,2 million in March 2024.
The coming in of the Manhize steel plant reduce the import bill, which accounts for about 3,5 percent of the US$1,7 billion spent on imports in the quarter under review.
According to the Engineering Iron and Steel Association of Zimbabwe (EISAZ), since the closure of ZISCO in 2008, Zimbabwe has been spending US$1 billion on steel and related product imports annually from countries such as South Africa, India and China.
At its peak in the late 1990s, ZISCO produced over one million tonnes of steel annually and employed more than 5 000 people directly.
EISAZ says Zimbabwe consumes 1,5 million tonnes of steel per annum.
The Manhize steel plant is projected to produce 600 000 tonnes of products in the first phase, rising to 1,2 million tonnes in the second phase.
It will then rise to 3,2 million tonnes in the third phase and ultimately 5 million tonnes per year in the final phase, supplying a full range of steel products to the Zimbabwean industry.
It will earn the country millions of dollars in exports as it becomes a major regional supplier and takes advantage of being located in the African Continental Free Trade Area.
The state-of-the-art facility is not only capable of producing high-quality steel products, but it is also poised to have a profound impact on the economy.
The establishment of the plant signifies the country’s commitment to strengthening the iron and steel value chain within Zimbabwe.
According to the Ministry of Industry and Commerce, the plant will play a pivotal role in enhancing the production of iron ore, its processing into steel and the subsequent manufacturing of various steel products.
In February 2024, the then-Minister of Industry and Commerce, Dr Sithembiso Nyoni, said the availability of high-quality steel products locally will reduce the country’s reliance on imports, thereby saving foreign currency and boosting balance of trade.
She said the plant will generate employment opportunities, while as it expands and reaches its full production capacity, it will create a significant number of direct and indirect jobs across the entire value chain.
In terms of jobs, Disco expects to directly employ 3 000 workers in the first phase, with the figure expected to rise to over 10 000 in the fourth phase of production.
Online Reporter