Online Reporter
Martin Kadzere, Business Hub
PLAYERS in the steel industry and related sectors have welcomed the Government’s move to introduce import licences for certain steel products, saying this will significantly benefit the development and expansion of Zimbabwe’s steel industry while creating opportunities for new entrants.
The new regulations make import licences mandatory for specific iron and non-alloy steel products, including flat-rolled products, hot-rolled or twisted bars and rods, and various angles, shapes, and sections.
This regulatory measure will enable the Government to manage steel product imports effectively, thereby safeguarding the local industry. Zimbabwe, once a regional hub for iron and steel production when the Zimbabwe Iron and Steel Company (Zisco) was operational, is now poised to reclaim its former status.
Once the largest steel producer in Zimbabwe and southern Africa, Zisco ceased major operations in 2008 due to a combination of factors, including debt distress, mismanagement, corruption, and Western economic sanctions. The recent commissioning of Dinson Iron and Steel Company (Disco), now Zimbabwe’s largest steel producer, marks a significant milestone in the country’s industrial resurgence.
While industry stakeholders argue that further protective measures, similar to those in other regional countries, are necessary, the new regulations are viewed as a step in the right direction. The impact is expected to cascade across steel sub-sectors, contributing to job creation and the preservation of foreign currency.
“It’s a dual win, — protecting and developing our industry while opening doors for new players,” said Disco Operations Manager Wilfred Motsi in an interview. “Regional peers like South Africa and Zambia have already demonstrated the success of such crucial restrictions.”
Tanzania is reportedly considering raising steel import duties from 25 to 35 percent to shield local producers from foreign competition, aligning with similar tariffs in Uganda and Kenya aimed at boosting domestic output. South Africa is conducting its most extensive review of steel tariffs in over two decades, potentially increasing duties and import controls to support its struggling local industry.
“We believe the Government could still do more to match the restrictions imposed by other countries,” Mr Motsi added.
He also urged the Government to re-evaluate import licence requirements for products not yet manufactured domestically or for those produced locally but not currently regulated.
Chief Executive of the Engineering Iron and Steel Association of Zimbabwe, Mr Matthias Ruziwa, said the new regulations were set to bring multiple benefits, including increased capacity utilisation within domestic manufacturing, reduced reliance on imports, substantial job creation, and critically, a reduction in foreign currency outflows.
“By prioritising local production and reducing external procurement, Zimbabwe’s steel sector is poised to achieve greater self-sufficiency and make a more robust contribution to the national economy,” he said.
Iron and steel imports reached US$256 million last year, with US$61,7 million recorded in the first quarter of 2025.
Mr Grison Muwidzi, Chief Executive of Grindale Engineering, which specialises in electromechanical engineering and civil contracting, told this publication that the licensing regulations would significantly bolster the local industry.
However, he stressed the need for complementary measures to promote value addition in iron and steel products.
“Restricting imports is a noble idea,” Mr Muwidzi said. “But it now requires further supportive measures to strengthen local industries. We need to replicate the integrated steel industry we had during the Zisco era, when robust companies along the value chain, such as Lancashire Steel, Haggie Rand, and Metal Box, emerged as powerhouses.”
Mr Muwidzi added that, with the primary raw materials for steel production now readily available, focus should shift towards developing steel value-addition industries.
Dinson is already working with the still-operational Zisco, supplying it with steel billets and pig iron to produce various value-added products. The company believes that rather than expanding into other sectors of the value chain itself, it should enable new steel industries to emerge and thrive.
“Import restrictions will now create a fertile ground, encouraging other industries to emerge and thrive,” said Mr Dosman Mangisi, Chief Operations Officer of the Zimbabwe Institute of Foundries (ZIF).
Experts note that steel plays an indispensable role in industrial development, due to its unique properties — its strength, durability, and versatility, making it essential for infrastructure such as buildings, bridges, and railways, as well as the production of machinery, vehicles, household appliances, and advanced technological components.
The industry not only provides vital materials but also acts as a major economic driver, generating employment and fostering innovation throughout its extensive supply chain.
Dinson has been a game-changer in the market. Its supply of steel billets and pig iron is now providing steel product manufacturers with significantly improved raw materials.
Prior to Disco’s entry, the industry relied on recycled steel, while some companies depended on imports to meet their raw material needs.
This positions Zimbabwe strategically as a potential major regional supplier of iron and steel products, leveraging its proximity to neighbouring markets that currently depend heavily on imports.
Key regional markets identified by ZimTrade, including Zambia, Botswana, Angola, the Democratic Republic of Congo (DRC), Malawi, Mozambique, and Namibia, present substantial potential demand.
For instance, Zambia imported approximately US$226 million worth of iron and steel in 2020, with the majority sourced from distant suppliers such as South Africa, China, Chile, and India.
Likewise, Malawi imported around 39 000 tonnes (US$83 million) in 2021, while Mozambique imported 111 000 tonnes (US$99 million), primarily from South Africa and China. Namibia and the DRC also recorded significant import values in 2021, US$95 million (26 000 tonnes) and US$126 million (46 000 tonnes), respectively, largely from overseas sources.
Zimbabwe’s ability to produce competitive products, particularly from new facilities like the Manhize iron and steel plant, positions it to significantly reduce these distant imports.
By capitalising on shorter logistical distances and potentially lower production costs, Zimbabwe could become a preferred supplier in the region, enhancing its export earnings and supporting broader industrial growth across southern Africa.
