From Zisco’s ashes a new giant is rising

Richard Muponde

IMAGINE a shimmering jewel of life amidst a vast expanse of parched earth.

That is the essence of the Manhize Steel Plant in Chirumhanzu district, Midlands province.

In a region traditionally known for its excellence in agriculture, this groundbreaking project is transforming the landscape.

Emerging from the heart of Manhize village, established in the early 2000s under the Fast-Track Land Reform Programme, the Manhize Steel Plant can be aptly described as an oasis in Zimbabwe.

Just like a verdant island amidst the desert, this ambitious project is geared to bring life and prosperity to the once-quiet community.

Spearheaded by Dinson Iron and Steel Company (Disco), a subsidiary of the Chinese giant steel producer Tsingshan Holdings Group, the project represents a multi-million-dollar investment in Zimbabwe’s future.

Since its inception in 2022, the project has progressed steadily, injecting a breath of hope and opportunity into the region.

Its impact extends far beyond the construction of the steel plant itself.

It is creating jobs, fostering skills development and stimulating economic activity in the surrounding areas.

A colossus once, a shadow now

Not since the collapse of Ziscosteel about 15 years ago has there been such palpable excitement in local industry about the rise of a new player.

At its height, Zisco anchored Zimbabwe’s industrial base.

It was a symbol of the country’s manufacturing prowess and a vital cog in its economic engine.

Its imposing blast furnaces and sprawling complex in Redcliff, Kwekwe, were a hive of activity, churning out steel that girded countless sectors, from construction to agriculture.

Zisco, which employed more than 5 000 workers at its peak, supplied steel for everything, from farm tools to bridges, playing a vital role in infrastructure development and agricultural productivity.

The company exported excess steel, generating much-needed foreign currency for the economy.

Crucially, it played a central role in fostering skills development by developing a skilled workforce in metallurgy, engineering and other technical fields.

A confluence of factors, including mismanagement, corruption and economic challenges, led to Zisco’s dramatic downfall in the late 1990s and early 2000s.

This decline left the country heavily reliant on expensive steel imports, choking vital industries and hampering infrastructure development.

Rise of a new giant

However, from Zisco’s ashes, a new giant is rising.

The envisaged US$1,5 billion integrated steelworks are poised to breathe new life into the country’s iron and steel industry.

According to Disco chairperson Mr Benson Disco, the Manhize project will be one of the biggest steelworks in Africa.

With an initial capacity of 600 000 tonnes per year, it is expected to slash Zimbabwe’s steel import bill by a staggering 90 percent.

In 2022, Zimbabwe imported iron and steel valued at approximately US$400 million.

The project will also have a positive multiplier effect on the economy, which would be felt in both upstream and downstream industries.

The second phase will see production rising to 1,2 million tonnes, before jumping to 3,2 million tonnes in the third phase and ultimately five million tonnes per year in the final phase.

Other products that the company will eventually produce include pipes, bolts and nuts, smaller slags, rolled tubes, fences, shafts, wires and bars, among others.

Net revenues are expected to be US$10 million during the first phase, before rising to US$4,25 billion under the fourth phase.

In terms of employment, Disco expects to directly employ 3 000 workers in the first phase, with the figure expected to rise to 25 000 in the final phase.

In contrast, Zisco employed 5 000 workers at its peak.

Infrastructure boost

Establishment of the steelworks is expected to provide a massive boost to infrastructure development.

The company plans to establish a new town for about 30 000 residents.

There are also plans to develop a university and a foundries centre in Manhize offering valuable skills training and knowledge transfer to propel Zimbabwe’s industrial capabilities.

Manhize Steel Plant will have a 50-megawatt (MW) thermal power station to power its blast furnaces.

Work is underway to set up a 300MW power station at the Sherwood block, which is expected to be the main source of power for the project.

A railway line linking Manhize, Mutare and eventually Beira, Mozambique, will be developed for easier transportation.

Tsingshan Holdings has since established an office in Mozambique to coordinate export logistics.

Two new terminals at Beira port will be constructed, while design for a larger port to handle 200 000 tonnes of iron and steel is being finalised.

In preparation for take-off of the mega project, Mozambique has since completed a revamp of the Beira-Machipanda railway line, which was recently commissioned by President Filipe Nyusi during a ceremony attended by his counterpart, President Mnangagwa.

Game-changer

Speaking during a recent tour of the plant, Industry and Commerce Minister Dr Sithembiso Nyoni said the project was expected to anchor Zimbabwe’s industrialisation drive.

“This state-of-the-art facility is not only capable of producing high-quality steel products but it is also poised to have a profound impact on our economy,” she said.

“The establishment of the Manhize Steel Plant signifies our commitment to strengthening the iron and steel value chain within Zimbabwe.

“This plant will play a pivotal role in enhancing the production of iron ore, its processing into steel and the subsequent manufacturing of various steel products.

“By integrating these stages of the value chain, we are fostering a more self-reliant and sustainable steel industry.”

Growth and development of the steel industry, she added, has a multiplier effect on other sectors, such as construction, infrastructure development and manufacturing.

“The availability of high-quality steel products locally will reduce our reliance on imports, thereby saving foreign currency and boosting our balance of trade,” she said.

“Furthermore, the Manhize Steel Plant will generate employment opportunities for our people.

“As the plant expands and reaches its full production capacity, it will create a significant number of direct and indirect jobs across the entire value chain.”

Operations at the plant are set to commence in April.

Disco projects manager Mr Wilfred Motsi said the first phase was 95 percent complete.

“By the end of the first quarter, we will be starting our first production, which is pig iron, and then in the second quarter in October, we will start production of steel billets,” he said.

“We will then be commissioning the whole of phase one, where we will be producing steel bars.

“So, in terms of completion, we are almost there.”

Godsend

Captains of industry who toured the plant recently said the project will inject renewed impetus to the country’s development.

Zimbabwe National Chamber of Commerce (ZNCC) president Mr Mike Kamungeremu said: “As ZNCC, we are impressed with what we saw.

“We saw all the fabrication and the plant and a thermal power station.

“If you look at the national perspective, they have already created 1 500 jobs and will double that in the next two years.

“Downstream all members of the construction will get raw materials locally.

“We are very blessed that we have iron ore, coking coke and ferrochrome, which are also here and our steel will be competitive.”

Mr Kenneth Musanhi, director of bus and truck manufacturer AVM Africa, said the project was a game-changer.

“It will catapult Zimbabwe to a global level,” he said.

“In terms of AVM, sourcing of material is made even easier.

“This will cut down on time and production.

“A much more efficient way of production will minimise downturns.”

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