… as six potential investors are shortlisted
Economic analysts have indicated that local investors are better placed to ensure growth at the national steel company, ZISCO Steel, through value addition unlike foreign investors who prefer exporting raw minerals.
This was revealed by a well-placed contact within the Ministry of Industry and Commerce following a shortlist of six potential investors for ZISCO Steel.
“A cursory analysis of the bids indicated that local investors would fit well on the ZISCO growth trajectory, given that they have expressed interest in ZISCO plants such as the foundry and Lancashire Steel, unlike foreign investors who appeared more interested in the mining of resources held by ZISCO through its mining arm Buchwa Iron Mining Company (BIMCO),” said the contact.
Contact added saying, “Previous attempts to scout for investors only brought those that were mostly interested in mining resources held under BIMCO and not necessarily in reviving the iron and steel plant.”
It was further revealed that due to the choice of investors who are only interested in the mining aspect of the national steel company, the steel plant has resultantly become obsolete.
“The ZISCO Steel Board of Directors and management even conceded that the current plant at the integrated steel plant has become obsolete, and economically unviable,” contact said.
According to contact, ZISCO has since written to the Zimbabwe Investment Development Agency (ZIDA) requesting that due diligence be done on the six investors focusing on financial capability, and technical capacity.
Meanwhile, ZISCO is capable of producing up to 70 million tonnes of steel per year and can employ over 8 000 people at its peak. Government is currently making efforts to ensure the revival of ZISCO and is targeting to have it up and running by the end of 2021.
Kuvimba Mining House, Mhare Resources (Pvt) Ltd, PAI Capital, Epikazo Capital (Pvt) Ltd, Sebeuzani (Pvt) Ltd and African Ferric Industrial Company are the six investors who have been shortlisted out of eleven, which had expressed interest in the iron and steel manufacturer.