Zim short-lists 7 investors for Zisco

HARARE - Zimbabwe has provisionally shortlisted seven investors for a majority stake in the Zimbabwe Iron and Steel Company (Ziscosteel), Industry and Commerce Minister Dr Sekai Nzenza has said.

Zisco is 91 percent owned by the Government.

The remaining nine percent is held by Louth Minerals SA (three percent), Tonexin Investments (2.8 percent), Stewarts and Lloyds (Overseas) (1.76 percent), Franconian Investments (081 percent), Amzim Limited (0.75 percent) and Zambia Copper Investment Limited (0.13 percent).

“We have done our due diligence on seven potential investors from Germany,

China and Australia but we still have some from India making inquiries,” said Dr Nzenza in an interview yesterday.

Zisco stopped operations in 2008 due to lack of capital to recapitalise and poor management. With its furnaces having capacity to produce up to one million tonnes annually, the company was among Zimbabwe’s major foreign currency earners.

Zisco has been a subject of foreign investor interest in the past. Essar Africa Holdings, a unit of India’s Essar Group, had agreed to invest in Zisco in 2011 during the era of the inclusive Government, but the deal collapsed in 2015. This was after a similar deal with another Indian firm,

Global Steel Holdings failed to materialise in 2007.

Essar planned to build a new steelworks complex, replacing the antiquated plant. It also planned to export products via a terminal it wanted to build in the port of Beira, Mozambique.

The company was looking into the feasibility of building iron ore and coal terminals at the port of Beira. The other international companies that once showed interest in Zisco include ArcelorMittal South Africa, a unit of the world’s biggest steelmaker and R&F from China.

“Our national steel strategy will be anchored on the revival of Zisco and we are working with all stakeholders such as Zimbabwe Investment and Development Agency to realise this goal,” said Dr Nzenza.

Meanwhile, current operations are targeted at raising capital through the sale of waste and boulders, among other activities, while plans are underway to resuscitate the mills to restart the manufacturing processes which are expected to benefit Lancashire Steel.

As such, $2.3 billion has been allocated to the Ministry of Industry and Commerce to spearhead the industrialisation thrust.