Chronicle Editor
Michael Magoronga, Midlands Correspondent
STAKEHOLDERS have expressed optimism that the selection of Kuvimba Mining House as the lead investment partner towards the revival of the defunct Zimbabwe Iron and Steel Company (Zisco), will yield positive results this time around.
Following Tuesday’s Cabinet resolution Kuvimba Mining, one of the successful private and public shareholding entity, is expected to lead the process to bring the steel producer back to life.
The entity’s selection follows a rigorous vetting process, which saw eight other shortlisted companies being set aside, said Acting Information, Publicity and Broadcasting Services, Dr Joram Gumbo, in a post-Cabinet meeting.
“The standard process to find an investor/partner for Zisco-Steel was undertaken under guidance from the Zimbabwe Investment Development Agency (ZIDA) and incorporated inputs from the State Enterprises Restructuring Agency (Sera),” he said.
“Kuvimba Mining House is a reputable player in the mining and metals sector, and has previously been involved in the cases in point are the recent resuscitation of Jena Gold Mine in Midlands Province and Shamva Gold Mines in Mashonaland Central Province, a process which has resulted in the remittance of dividend to Treasury.”
Previously, companies like Essar Holdings, Jindal Steel and Power as well as Global Steel Holdings of India and Hong Kong-based company R and F, have failed to agree on terms with the Government leaving stakeholders dejected.
The Redcliff community, where Zisco is based, has been faced with numerous development challenges due to the demise of the company, which was the engine behind the town’s growth. The town itself had been reduced to ghost status with no economic activity taking place as most of the populace was not employed.
However, the news over the new deal has come as sweet music to locals who are hoping that the resuscitation of Zisco will create more jobs for them and impact on the wider regional economy.
Zisco group chief executive officer, Dr Farayi Karonga, could not hide his excitement saying he was ready to get down to business.
“Zisco management is thrilled that the Government has made the determination. We are now looking forward to working with Kuvimba to resuscitate steel production at Ziscosteel,” he said.
“This is good news indeed. When the company is operating, we are hopeful that we will get jobs for our children and things will be back to normal.”
A former Zisco worker, Mr Tichaona Mashava, said it was encouraging that the Zisco revival dream was now promising.
“It’s hard for us to get water now because our council has failed to replicate what Zisco used to do. We are facing a lot of challenges due to the closure of the company,” he said.
Redcliff Mayor, Councillor Clayton Masiyatsva said a Zisco rebound was good news for the whole country, adding that the proper implementation of the deal was key. “Its good news for the Redcliff Community if implemented. Remember we do have some arrangements before with other investors but nothing happened. We pray that this time around that the partnership will work,” said Cllr Masiyatsva.
Zimbabwe Institute of Foundries chief operating officer, Mr Dosman Mangisi, also lauded the development saying it will help cut the cost of foundry sector raw materials. “Once Zisco starts operating the metal cast industry will benefit as it will witness a reduction in the cost of production,” he said.
“It will also improve the quality of iron and steel products therefore improving the products making them competitive on a global market.”
Mr Mangisi said the local foundries industry, which had suffered reduced capacity due to shortage of raw materials will be resuscitated. He said the new deal was expected to breathe life into Redcliff, a town which relies on the thriving of the company.
At its peak, Zisco used to employ more than 5 000 workers directly or indirectly.
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