Putting Metal to Work
Chinese steel manufacturers help upgrade the construction industry in Zambia
Willy Mbewe, 30, from Zambian capital Lusaka’s sprawling Kalingalinga Township, is motivated by the fact that through his career in metal fabrication, he can provide a service to the community and country at large, while also creating jobs.
In 2012, driven by his passion for engineering, Mbewe studied metal fabrication at Lusaka Trades School in a bid to pursue his dream.
“I like civil engineering and I thought one day I will become an engineer, so that I could serve my country; because as a nation, while we have many qualified engineers that are doing well, most of them are working outside the country,” Mbewe told Chinafrica.
With the establishment of many Chinese steel manufacturing plants in the country, Mbewe believes that given Zambia’s availability of raw materials, local metal fabricators like himself have the potential to add value to the economy by creating jobs.
Metal fabrication is the creation of metal structures by cutting, bending and assembling. It is a value-added process involving the creation of machines, parts, and structures from various raw materials.
Job creation
In 2015, armed with a small nest egg and some homemade equipment, Mbewe started his dream project. Spurred on by his father, a renowned steel expert in the area known for its expertise in metal fabrication, Mbewe established Amoson Metal Welders.
“I started with just K5,000 ($250), a welding machine and a small grinder, but today I have industrial equipment worth over K20, 000 ($1,000), which can do most of the work with ease,” he said.
Five years down the line, Mbewe disclosed that he has managed to employ an assistant, as well as two student metal fabricators who are on an industrial attachment at his firm.
Barely five years into his company’s operation, Mbewe has managed to build his own
house and won major contracts with the Zambia National Service and the Lusaka City Council, among others. “This sector is very important here in the township as it has lifted many youths out of poverty. They are now able to do quality work such as door frames, gates, window frames and sign posts, all made of steel,” he said.
In Zambia, just like any other developing country, foreign direct investment in the manufacturing industry is critical for developing any emerging market economy.
In a bid to scale up public investment to address Zambia’s infrastructure needs, the government has embarked on a fullscale construction and rehabilitation of roads, houses, medical facilities, schools and bridges, among others, a strategy that is expected to spur socio-economic growth.
Not long ago, steel products had to be imported from other countries; now Zambia has the capacity to produce its own steel, thanks to a flourishing mining sector. This has in turn created jobs at small and medium-sized enterprises (SMES) such as metal fabricators, whose business depend on steel as a vital raw material.
While local steel manufacturers are seeing remarkable growth, they are also creating employment and primary industries along the way, as individuals and private sector have responded positively to investing in the real estate sector.
Economic experts believe that robust industrial development presents an opportunity for economic transformation and quality employment generation that alleviates poverty in any developing country. It is a fact that throughout history, this exact economic recipe has transformed most European and Asian countries into some of the world’s wealthiest nations.
For this reason, through its equipped state-of-the-art facilities and a technically minded local workforce, Good Time Steel, a Chinese steel manufacturing company based in Zambia, is keen to grow its products and services in line with changing
In Zambia, the need for foreign direct investment in the manufacturing industry is critical for developing any emerging market economy.
industry demands.
“Since Zambia is a good destination for investment due to its conducive political climate, we found it viable to establish our steel manufacturing plant here in 2005. In addition, the country has enough scrap metals [dealers] due to its flourishing mining industry,” Good Time Steel Co. Managing Director Jacky Huang told Chinafrica.
From its humble beginnings, Good Time Steel, which now represents more than half of Zambia’s steel production, started full time operations in 2008 with a workforce of over 100; now, it boasts more than 700 workers and is one of the leading steel manufacturing companies in the country.
In terms of local market share, Huang said, “We are number one, with more than 40 percent market [share]. Our production covers a wide range of over 300 products, including pipes, tubes, wire, roof sheeting, aluminium, nails and iron bars, as well as all types of construction materials such as tiles, all under one roof.”
Global market
The manufacturing industry remains one of the vital economic priority areas in the country as Zambian raw materials are in need of value addition. Therefore, investment in this sector helps the country earn foreign exchange, thereby stabilizing the kwacha (local currency).
Previously, many people and companies used to import steel from China, Dubai and South Africa. But with Good Time Steel industrial acumen, consumers have expressed delight over its various competitive steel products on both the local and international market.
“Our market is not only in Zambia, but we also export to neighbouring countries, especially Zimbabwe, Malawi, Burundi, among others,” Huang added.
Apart from Good Time Steel Co., Oriental Steel Manufacturing Ltd. is another Chinese manufacturer of steel and plastic products based in Lusaka.
“We manufacture building materials, for example, wire, nails and roofing sheets and also steel products such as beams. We then sell these to the Zambian market, with a focus on wholesale trade. We fabricate products for the local market only, and do not export to neighbouring countries like other steel producers,” said Oriental Steel Manufacturing Ltd. Managing Director Li Jinggang.
The steel manufacturing company, which is involved with certain large projects all over the country, does not undertake any construction projects directly, but focuses on manufacturing to supply its partners.
“We supply most of the construction companies, as well as large hardware stores,” said Li.
Homebase Steel is one of the renowned local hardware suppliers of steel in Lusaka and depends solely on the Chinese steel manufacturing plants to service its clientele, mostly SMES, in and out of town.
Meanwhile ZINPRO Engineering Ltd. based in Zambia’s Copperbelt Province is an EPCM (engineering, procurement and construction management) company specializing in turnkey construction projects for the mining industry. Steel being one of its critical raw materials in undertaking its fabrication projects to the mines, the company’s Operations Manager Wessek Pentz said locally supplied steel is better.
“We rely on the locally produced high grade steel for our work. We also support the local companies as their steel standards and grades are up to specifications and I see no reason to import from other countries,” said Pentz. CA