Chronicle Editor
Oliver Kazunga, Senior Business Reporter
INDUSTRY and Commerce Minister, Dr Mike Bimha said “too much publicity” frustrated the $750 million Zisco/Essar Global deal.
The Government in 2011 sealed the mega-deal with Essar Global, an Indian conglomerate, which was supposed to takeover and revive Zisco, the country’s largest steel manufacturing firm.
Zisco ceased operations in 2008 after running into serious financial challenges.
Responding to questions from the floor during a roundtable discussion at the Mine Entra exhibition in Bulawayo on Thursday, the minister said:
“One of the reasons why we didn’t succeed with the previous arrangement, was that many time frames were given and the deal was subjected to too much publicity,” he said.
Dr Bimha said this time around the Government had adopted a different approach regarding the publicity on Zisco revival.
“Following the collapse of the Zisco/Essar deal, the Government continues to search for a strategic partner to revive the largest steel manufacturing plant north of the Limpopo”, he said.
Early this year, the Government announced that it had shortlisted some other potential investors to take over operations at Zisco.
“We are talking to investors and the talks are now at an advanced stage but we’ll be looking at an investor who focuses mainly on steel production. This means that the new investor has nothing to do with Lancashire Steel which distributes steel products,” said Dr Bimha. — @okazunga
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