Correspondent|The Government said yesterday it has decided to put back on track the proposed $1 billion investment in the Zimbabwe Iron and Steel Company by a Chinese investor.

Industry and Commerce Minister Nqobizita Mangaliso Ndlovu said he was hoping his visit to China next week would help tie up loose ends on the deal.

If successful, the resuscitation of the Zimbabwe Iron and Steel Company could ignite downstream economic turnaround in Redcliff, Kwekwe and other related businesses countrywide. Zisco ceased operations at the height of economic challenges in 2008 resulting in more than 5 000 people losing jobs.

Masawara group of companies’ chief executive officer, Dr Shingi Mutasa, said the demise of Zisco has crippled business operations in Kwekwe and the economy at large.

“If we simply start by awakening the giant, Ziscosteel, then all these other smaller companies that rely on it will spring to life and that will be our first major step towards economic recovery,” said Dr Mutasa.

Lancashire Steel, Zimchem, Hagie Rand and Bimco, National Railways of Zimbabwe and Hwange Colliery are some of the companies that used to rely on the Redcliff-based steel manufacturing company. Sable Chemicals, which is owned by Masawara group of companies, also used to have good business with Zisco.

As Zimbabwe focuses on transforming the economy, Dr Mutasa said adequate attention must be given to big projects that have a downstream impact like Zisco.

“Those that are going to benefit from the process are the ones who are actively involved. All we need as Zimbabweans is a positive mind that tells us that we are in the right direction.

“I know we have been battered and bruised by the economic hardships, but let us remain focused,” said Dr Mutasa.

He said the country has the potential to become one of the fastest growing economies since it has the required infrastructure and other resources.

Municipalities have also been urged to play a key role in the development of adequate infrastructure to support business growth. Kwekwe Business Association chairperson, Mr Michael Hanyani said economic turnaround efforts should cover small to medium enterprises as they possess a huge potential.

“We plead with the local authority to get us proper places where we can operate from to avoid this cat and mouse game with authorities,” said Mr Hanyani.

Last month, Minister Ndlovu told a business conference that the Government was not happy with the progress by R and F, nearly a year after it expressed interest in reviving Zisco.

He said the Government had done everything to accommodate “a lot of the demands from the potential investor (R and F) but still progress has not been much”.

He also said the Government was considering looking at inviting other interested investors.

However, Minister Ndlovu said he was expecting to finalise the deal when he meets the investor in China next week.

“Everything remains intact,” Minister Ndlovu said in an interview. “They have expressed willingness to see the deal sail through and we will be consolidating our positions.”

He said the Government was not talking to “anyone other than the Chinese investor”.

Zisco closed operations in 2008 after facing operational and financial challenges. Essar Africa Holdings, a unit of India’s Essar Group, had agreed to invest in Zisco in 2011 but the deal collapsed in 2015 largely as a result of failure to access iron ore claims. This was after a similar deal with another Indian company Global Steel Holdings failed to materialise.

Essar had proposed to build a new steelworks complex, replacing the antiquated plant. The company was also looking to build iron ore and coal terminals at port Beira.

Zisco, once a major foreign currency earner, used to produce about one million tonnes of steel per year. In the quest of opening the industry to other players, the Government recently granted Chinese stainless steel giant Tsingshan a special grant to iron ore mining rights in an area around Chivhu, Mashonaland East Province, to enable the company to set up a stainless steel manufacturing plant.

The development would require significant increase in key feed stock minerals namely iron ore, nickel and coal. According to Mines and Mining Development Minister Winston Chitando, the Chinese firm had already begun conducting feasibility studies. The stainless steel plant, would result in an investment of over $1 billion and would generate annual export revenue in the order of $2 billion annually.

The $1 billion, however, excludes other investments in related sectors earmarked to support the facility.

Zimbabwe is already working on a new mining policy targeting to grow the industry to $17 billion by 2030, driven by a wave of foreign investments which will see a jump in production at existing operations, and the development of new mines.

Zimbabwe generates about 65 percent of its foreign currency from mineral exports.