ZISCO strengthens corporate governance

THE Zimbabwe Iron and Steel Company (ZISCO), is strengthening corporate governance systems to enhance its attractiveness to investors after several deals have failed to take off.

Industry and Commerce Minister Dr Sekai Nzenza, said a board compact and charter was signed and all corporate governance, performance management and loss control systems were now in place.

A forensic audit was also underway while an internal auditing function has been set up for the group and subsidiaries including Lancashire Steel, ZimChem and Buchwa.

“ZISCO is going ahead with the two-pronged approach of engaging local investors for the low hanging fruits and at the same time soliciting for external investors for the total resuscitation of the company,” said Minister Nzenza.

“The short-term thrust for ZISCO has seen the solidifying of the ZISCO’s group human capital. The significant departments such as finance, human resources, administration, security, marketing and legal have been restructured to meet the new challenges for the full resuscitation of ZISCO.

“Lancashire Steel and BIMCO are on the hunt for new general managers to lead the short to medium term transformation of ZISCO.”

The iron and steel industry remains crucial for economic growth and development as it has major spin-offs to other industries upstream or downstream.

It supports the energy sector through its high demand for energy inputs; the mining sector by providing raw materials such as ore and limestone and the manufacturing sector by supplying raw materials.

“The Government is already developing a strategy to build capacity throughout the value chain of the iron and steel industry.”