Online Reporter
Patrick Chitumba and Freedom Mupanedemo
THE granting of Special Economic Zone (SEZ) status to the US$1,5 billion Dinson Iron and Steel Company (Disco) Integrated Industrial Park in Manhize, Chirumhanzu, is a direct reflection of the “Zimbabwe is open for business” mantra, a Cabinet minister has said.
Speaking during a media tour of the plant yesterday, the Minister of Information, Publicity and Broadcasting Services, Dr Jenfan Muswere, said the SEZ designation, granted through the Zimbabwe Investment and Development Agency (Zida), will accelerate investment inflows, drive industrialisation and create jobs.
“The Special Economic Zone status granted by the Government through Zida is in line with the Zimbabwe is open for business philosophy in order to generate as much foreign direct investment as possible in the country,” he said.
Dr Muswere said Disco is a product of the Second Republic’s engagement and re-engagement drive, which has opened the door for large-scale foreign direct investment in strategic sectors.
“This steel giant is part of the success stories under the leadership of President Mnangagwa and already we have seen various steel products being produced here for the local and export markets in a development that will result in the lowering of the steel export bill, which was running into a billion (US) dollars annually,” he said.
The SEZ designation allows Disco to act as zone owner, developer and operator, attracting investors across the iron and steel value chain. The park is projected to create up to 25 000 direct jobs and generate 150 000 indirect jobs at full capacity.
The project — described by President Mnangagwa as a “paradigm-shifting milestone” in Zimbabwe’s industrialisation journey — is part of a broader smart city vision.
The development will include steel production facilities, housing, schools, clinics, roads, rail links to Mozambique and the DRC and a hydroelectric dam.
Dr Muswere said Disco has already met its first-year target of producing 600 000 tonnes of steel products, including pig iron, billets and bars, with 80 percent destined for export.
He said the plant’s integrated operations, sourcing raw materials locally from Mashonaland East (iron ore), Redcliff (limestone) and Hwange (coke), reflect the Second Republic’s emphasis on beneficiation and value addition.
“At the same time this reflects in terms of our industrialisation, in terms of our sovereignty. For many decades, we have been importing steel products worth billions of dollars, but with the coming on board of Disco, this will be a thing of the past. All this is because of the magnetic investment environment that has been created by the New Dispensation, where the rallying call has been Zimbabwe is open for business,” said Dr Muswere.
He said the plant is an integrated steel works, which is unique in that all the major raw materials required in terms of steel production are produced within the country.
“We have iron ore coming 7km from Mashonaland East province within the Manhize mountain ranges, we also have limestone, which acts as the flux coming from Redcliff, we have the coke coming from Hwange,” Dr Muswere said.
“All these integrated steel works produced in the first phase 600 000 tonnes of different products with pig iron, billets and bars. All these products and more contribute to economic growth, creating thousands of jobs.”
Disco project director Mr Wilfred Motsi said the SEZ status is already drawing other companies to Manhize, aided by incentives such as tax rebates and zero-rated taxes.
AVM Zimbabwe and Greendale have signed on to establish operations producing flat sheets and other value-added steel products.
“A lot of employment is going to be created because other industries are coming in. We are talking of other industries related to Disco and the value chain area,” he said.
Mr Motsi said the SEZ designation will not only promote economic activity within the country but also boost exports, with 80 percent of products slated for export and 20 percent for the local market.
“The SEZ is anticipated to create numerous employment opportunities as other industries related to steel production and value-added services are drawn to the area,” he said.
