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Trust Freddy Herald Correspondent
THE steel towers carrying Zesa’s power lines and other galvanised steel products will now be made in Zimbabwe as a result of a deal between Zesa Enterprises (Zent), a subsidiary of Zesa Holdings, and Dinson Iron and Steel Company, the Chinese firm constructing the US$1,5 billion steel manufacturing plant in Manhize.
The deal will see Zent procuring all the necessary steel material needed in electricity transmission and distribution locally.
Last year the two agreed to jointly set up a steel galvanising plant that will make the steel towers needed for transmission lines and many other steel products.
Zent managing director Dr Godfrey Mugaviri signed the Memorandum of Understanding with Dinson Iron and Steel Company managing director Mr Benson Xu in the presence of Zesa Holdings executive chairman Dr Sydney Gata who was the guest of honour.
Speaking during the signing ceremony, Dr Gata described the deal as a major milestone which seals a chapter towards achieving vision 2030.
“In terms of that agreement, we are going to procure steel products that we will use in the infrastructure which supplies electricity, the most notable one being transmission towers and steel that is used for fabricating power transmission and distribution infrastructure.
“Up to now we have been importing steel from the Far East, Japan , India, China and sometimes South Africa. But in future, we are going to manufacture this equipment here in Zimbabwe. “
Once production starts at Manhize, the steel plant is expected to drastically cut steel imports in Zimbabwe by 90 percent from the current average of about US$400 million per annum.
Dr Mugaviri said: “Most of the materials that are used in the electricity sector in Zimbabwe, probably 70 percent constitute iron and steel and to that extent we have seen it very strategic and impairing that we then sign a MoU with Dinson Iron Steel Company.”
“The beauty about this MoU is that Zesa Enterprises will be able to get Iron and steel, which are then used to manufacture transformers, power lines and other materials.”
Mr Xu said they were fully rallying behind President Mnangagwa’s vision of achieving an upper middle income by 2030, adding that starting next year there will be no need to import steel.
“There is a vision, and in my opinion, electricity and steel are the two things most essential for the country to realise that vision and without these two, there would be no vision to discuss.
“We believe a combination between us and Zesa can bring positive results. Manhize is focusing on steel production but Zesa has more marketing muscle than we do because of its extensive network.”
The US$1 billion steelworks are on schedule and Disco is expecting to commission the first blast furnaces in December.
The steelmills will supply most of Zimbabwe’s requirements and create a large export market.
Online Reporter