Zim clinches US$105m steel deal

Zim Now Writer

The US$105 million steelmaking project snapped up at the Africa Investment Forum in Abidjan, Cote d’Ivoire is testimony of substantial economic reforms Zimbabwe has instituted.

Supported by Steelmakers Limited, the project finance venture is one of the US$265,4 million worth of deals the Zimbabwe delegation presented to the forum for funding.

The project involves the construction, set up and installation of a steel making plant as well as a 300MW power plant.
Speaking to investors at the forum, President Emmerson Mnangagwa said his government realised that global capital can only go to environments where they feel comfortable.

“So, we have instituted comprehensive economic reforms in the country in order to be competitive,” he said.
Mnangagwa added that Zimbabwe had “huge unearthed reserves” of iron ore and encouraged investors to take up the opportunities created through Steelmakers Limited.

“Just like all other developing countries, we have been constructing railway lines, dams, roads, housing and airports in all these sectors and the market assessment is huge.

Of the 37.4 million tonnes of steel used on the continent in 2021, a total of 19,9 million tonnes is imported, a reflection that Africa has a huge market for steel.

Mnangagwa said the aim was that in five years’ time Zimbabwe should be able to contribute significantly to the 93 percent of steel imported outside of the continent.

Steelmakers Limited chief executive officer, Dr Kalpesh Patel, confirmed the interest shown in the deal, adding that further details will be availed in due course.

“We have secured funding, and we have started the work on the ground. The details will emerge. These have just been discussions that have emanated from the commitment. And, it has to do with funding of the expansion of the steel plant, which will take us to 300 tonnes plus a 300-megawatt power plant,” he said.