Joseph Madzimure-Zimpapers Politics Hub
The Government’s industrialisation drive continues to gain momentum, with Dinson Iron and Steel Company in Manhize, Mvuma moving to invest an additional US$500 million to bring their total investment to US$2 billion by 2030.
The Tsingshan Group subsidiary, which was formed four years ago, stands out as one of the success stories of the National Development Strategy One (NDS1) industrialisation drive, initiated by the Second Republic under the leadership of President Mnangagwa.
The investment by Tsingshan Group, which is the largest steel giant in Sub-Saharan Africa, and the sixth largest in the world, is a show of confidence by one of the global industry leaders.
So far, the project has consumed US$1,5 billion, creating over 2 000 jobs, re-establishing steel manufacturing as a strategic pillar of national development.
Speaking during a media tour at Dinson Iron and Steel company in Manhize last Friday, project manager Mr Wilfred Motsi said the US$500 million will go towards the expansion of the plant through the acquisition of new machinery for value addition and beneficiation.
In addition, the company is also planning to construct a cement manufacturing plant, a training institute for technicians and decent houses for their employees.
In this regard, the Government has already set a layout plan for a town status in Manhize. The company is also setting up new and renovating old school buildings among other developments.
The company, which produces a variety of iron and steel products, including pig iron, steel billets, reinforcing bars (rebars), wire rods, round bars, steel balls, coke, and electricity pylons, among others, has also set up a 50MW power plant to achieve energy self-sufficiency and decrease the company’s dependence on the national grid.
“The project is in line with Zimbabwe’s Vision 2030, launched by the Second Republic under President Mnangagwa, which aims to transform the country into an empowered and prosperous Upper Middle-Income Economy by 2030,” said Mr Motsi.
“In a nutshell, we really see that we are contributing to the National Development Strategy 2 and we are also in line with the Government policies, especially of rural industrialisation.
“As you can see, this plant is in the middle of a rural setup. The company has transformed this area into an urban setup because of the production, which we are doing.”
This goal, he said, focuses on achieving an increase in investment, modernising infrastructure, and ensuring sustainable, inclusive economic growth.
Mr Motsi confirmed that under phase 1 of its production level, the company is producing 600 000 tonnes of steel per year, which is double the national requirement of 300 000 tonnes.
“Under phase 2, the steel company is expected to produce 1 200 000 tonnes of steel by 2030,’’ he said.
Journalists walk past piles of hot-rolled steel at Dinson Iron and Steel Company in Mvuma at a media tour of the steel plant on Friday. Mass production of steel products at the giant plant is playing a pivotal role in fulfilling National Development Strategy 2, with the country already saving over US$500 000 annually on the steel import bill since the company became operational. — Picture: Believe Nyakudjara.
The iron and steel value chains are among key sectors identified to accelerate the transformation and growth of the manufacturing sector.
The company, Mr Motsi said, has managed to satisfy the local demand with focus now on exports to generate foreign currency for the country.
He highlighted that the company is exporting steel to countries such as South Africa and other regional countries.
“We are exporting our steel while also supplying the local market. First and foremost, we prioritise meeting local market demand, and then we move on to regional markets,” he said.
“We also know that we can make our work easier thanks to special instruments introduced by the Government, which support our operations.
“We are operating in line with Vision 2030, aiming to grow the economy into a middle-income economy.
“We are, therefore, aligned with the current vision and we are also looking at ways to expand our production.”
The steel manufacturing company is engaging in value addition and beneficiation of its products to realise the value of its products.
“Moreover, we have strong potential to expand across both upstream and downstream industries. We are aligned with our broader vision: to support sustainable industry growth. As noted earlier, our efforts already create jobs, and we are committed to serving the global community.”
“Zimbabwe is one of the fastest-growing economies in the region, and we are looking at market expansion in line with
Vision 2030. Our clients across the region can expect more as we scale up production and strengthen our offerings.”
In terms of power, Mr Motsi said, in addition to their 50 MW power plant, they had also constructed a 20-megawatt power station from the excess gas coming from their pollution.
“We are discussing with ZESA on the excess power, which we have currently, of more than 30 megawatts, that we want to add to the national grid, so that other people can have access to electricity”, he said.
Beyond Manhize itself, the initiative is expected to revive Bulawayo’s dormant industrial base by reconnecting factories to a renewed steel value chain, while stimulating infrastructure upgrades in rail, roads and water systems
Policy consistency, strong public-private partnerships, and an increasingly investor-friendly climate continue to attract local and foreign capital.
Zimbabwe is firmly on the path to becoming an upper-middle-income economy by 2030 by laying a solid foundation for inclusive and sustainable growth.