KEY POINTS
- Mnangagwa emphasizes the importance of reviving Zimbabwe’s iron and steel sector to reduce imports and drive economic growth.
- The Dinson Iron and Steel Company’s billion-dollar investment boosts Zimbabwe’s industrial prospects, positioning it as a regional player.
- The government’s policy initiatives have improved manufacturing capacity utilization, with sector contributions to national employment steadily growing.
Zimbabwe’s President Emmerson Mnangagwa has stressed the crucial role of the iron and steel industry in revitalizing the country’s economy, while positioning it as a regional manufacturing hub within the Southern African Development Community (SADC). The President made the remarks during the opening of the Iron and Steel Indaba in Kwekwe, where key government officials, including Vice President Constantino Chiwenga and Industry Minister Mangaliso Ndlovu, were present.
Mnangagwa highlighted the industry’s significant potential, particularly in leveraging the country’s vast mineral resources such as iron ore and chrome. He noted that Zimbabwe currently spends over $1 billion annually on iron and steel imports, underlining the importance of revitalizing the sector to reduce dependency on foreign imports and boost domestic production.
Iron and Steel’s role in national growth
According to Herald, the President emphasized that the resurgence of the iron and steel industry is critical for the country’s broader economic transformation. He pointed to the legacy of Ziscosteel, once Zimbabwe’s largest steelworks, and emphasized the need to revive the sector to meet domestic demand while positioning the nation as a key player in the regional market.
Recent developments, including the operationalization of the Dinson Iron and Steel Company in Mvuma, have spurred optimism. Tsingshan Group, the world’s sixth-largest steel producer, invested in the company, signaling global confidence in Zimbabwe’s iron and steel potential. The President sees this investment as a pivotal step toward restoring the sector’s relevance and boosting its economic contributions.
Manufacturing and policy progress
Mnangagwa provided a broader picture of the country’s manufacturing sector, which has made notable strides. Capacity utilization increased from 36.4% in 2019 to 53.2% in 2023, and capital investments in manufacturing amounted to $747 million over the past three years. Additionally, the share of locally produced goods on retail shelves rose from 64% to 80%.
The manufacturing sector’s contribution to national employment has also grown from 7.5% in 2019 to 9.7% in 2023, a positive sign for the economy. The President stressed the importance of leveraging Zimbabwe’s abundant natural resources and youthful population to achieve sustainable industrial growth.
National and regional industrialization efforts
Mnangagwa’s government is committed to creating a dynamic and competitive industrial base through strategic value-chain linkages. He underlined the importance of diversifying the economy from a resource-driven model to a knowledge-based economy through incremental steps.
As chair of SADC, Zimbabwe has an opportunity to drive industrialization across the region, and Mnangagwa urged stakeholders to adopt innovative business models that can enhance regional and global competitiveness. He also noted that the iron and steel industry is vital for key infrastructure projects, including dams, roads, and the national railway network.
Future outlook and strategic investments
Looking forward, Mnangagwa emphasized that a skilled workforce, innovation, and collaboration between academia and industry are essential for sustaining the iron and steel industry’s growth. He called for holistic strategies that focus on sustainable economic development, with support from both fiscal and non-fiscal incentives in the 2025 National Budget.
Vice President Chiwenga also highlighted the transformative potential of Dinson Iron and Steel’s investment, which will position Zimbabwe as a leading iron and steel producer in Africa. He credited President Mnangagwa’s engagement efforts as instrumental in bringing this billion-dollar project to Zimbabwe.
With the right policy framework, collaboration, and innovation, the iron and steel industry could play a central role in realizing Zimbabwe’s Vision 2030 goals, paving the way for long-term economic prosperity.
