adminTHE country’s struggling sole manufacturer of arms and ammunition, Zimbabwe Defence Industries is considering diversifying into manufacturing mining explosives as it seeks to take advantage of the growth in the mining sector, an official has said.
ZDI general manager Retired Colonel Tshinga Dube said the company was forced to halt the manufacture of arms and ammunition due to a low uptake of its products by its regular clients, the Zimbabwe Republic Police and the Zimbabwe National Army owing to the importation of cheap consignments especially from the Far East by the two state security agencies.
He also said the other challenge, which led to the collapse of its ammunition manufacturing business, was failure to recapitalise its operations to the tune of about $30 million.
Rt Col Tshinga said the company had lined up a number of diversification initiatives but hinted that plans were at an advanced stage to venture into mining explosives manufacturing.
“We have a number of diversification endeavours that we are working on but for us the uppermost is for us to embark on the production of mining explosives.
“Though the mining sector is not at its peak at the moment, it is one of the sectors that have a bright future and thus we are closely following its growth with a view of tapping from its success,” Rtd Col Dube said.
He said a study from their research had shown that a number of mining companies were importing explosives hence ZDI could take advantage of this gap to manufacture them locally.
“A feasibility study which we carried out revealed that all the mining houses in the country were importing their explosives thus we intend to grab this lucrative market and we are looking at a capital injection of about $1 million to embark on this project,” Rtd Col Dube said.
He added that it was unlikely that the company would in future return to its core business of arms manufacturing.
“We are no longer doing our core business and it is highly unlikely that we will do it in the near future. We are already focusing on our diversification strategies, which have already seen us venture into scrap metal and fuel supplies especially to the Zimbabwe Defence Forces,” Rtd Col Dube said.
Before winding up its original operations ZDI used to manufacture small arms ammunition, both ball and blank in 7,62 x 39 mm and 7,62 x 51 mm calibres. At its filling plant outside Harare, ZDI used to fill mortar shells in the calibres of 60 mm, 81 mm and 120 mm and had the capacity to fill artillery shells up to 155 mm, rocket launchers, and fragmentation hand grenades.
ZDI also used to trade in military-related products that was not manufacturing such as uniforms, footwear, head-dress, ration packs and tents.
derick.khumalo