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The Parliament of Zimbabwe yesterday started public hearings in Harare to seek views on the proposed legislation with regard to the assumption of the Zimbabwe Iron and Steel Company (Zisco)’s $295 million legacy debt.
This comes as the Government is looking at acquiring the Zisco debt to make the company attractive to new investors.
The company, once southern Africa’s largest steel company, closed down about 10 years ago after facing serious financial and operational challenges.
Chairperson of the Finance and Economic Development Portfolio Committee David Chapfika said many investors have made inquiries to revive the company but the company is “burdened by a huge deficit that Ziscosteel incurred,” in the past years.
“Financial statistical obligation is officially transferred from one part to the other and in this case the Zisco Steel debt will be taken over by the government of Zimbabwe through legislation process,” he said.
The next hearing will be held in Kwekwe today (Tuesday) and in Gweru on Wednesday, then in Bulawayo on Thursday.
Zisco’s debt stood at $380 million in July 2017 when Cabinet approved the assumption of over $1 billion worth of debts that were accumulated by critical state enterprises.
Finance and Economic Planning Minister Patrick Chinamasa earlier this year gazetted the Zisco Steel Debt Assumption Bill to facilitate the takeover the debt by the State to pave way for new investment by a Chinese firm R&F Company. — Herald Reporter.
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