Zimbabwe is poised to become Africa’s largest steel producer and seventh in the world when the Dinson Iron & Steel Company Zimbabwe (Disco) plant in Manhize becomes operational, the latest figures from the World Steel Association suggest.
The Manhize plant, being constructed to the tune of US$1 billion, will be commissioned in phases starting with an annual production of 600 000 tonnes, which will be gradually ramped up to 1,2 million in the second phase, 2,4 million in the third phase, and five million in the final phase, according to Disco’s production projections.
The WSA steel production figures released in June 2023 show that Africa produced 1,3 million tonnes of steel in 2022. At 5,5 million tonnes, South Korea was the world’s sixth largest producer.
Before the closure of Zimbabwe’s Iron and Steel Company (ZISCO), Zimbabwe used to be Africa’s largest iron and steel company.
“It’s an economic glory for the country and the continent at large,” the chief operations officer at Zimbabwe Institute of Foundries, Mr Dosman Mangisi told The Herald Finance and Business in an interview.
“Other smaller steel companies will be able to increase production due to the availability of cheap and good quality raw materials. The country will generate more foreign currency through exports and will also help the revival of steel foundries.”
Given the importance of steel and iron products in supporting the operations of many other industries and industrialisation, Zimbabwe’s import bill continues to grow.
In 2021, steel and iron products imports soared to nearly US$410 million from US$306 million a year earlier, according to figures from the Zimbabwe National Statistical Agency, driven by a series of public and private infrastructure programmes.
High-end steel and iron products have also pushed demand up.
According to ZimTrade, potential export markets for Zimbabwe include Zambia, Botswana, Angola, the Democratic Republic of Congo, Malawi, Mozambique, and Namibia.
According to Trade Map, Zambia imported iron and steel worth around US$226 million in 2020, with the majority coming from South Africa (US$113 million), China (US$64 million), Chile (US$27 million), and India (US$3 million). In terms of quantities, Zambia has been importing more iron and steel over the years, from around 58 000 tonnes in 2018 to around 81 000 in 2021.
“Leveraging on Zimbabwe’s short distance to Zambia, there is potential for Manhize Iron Steel Plant to produce products that will compete well in the neighboring country,” said Zimtrade.
In Malawi, most of the iron and steel imports, worth around US$83 million in 2021 came from China. In terms of quantities, Malawi imported 39 000 tonnes of iron and steel in 2021. The other major suppliers in Africa are South Africa, Zambia, and Mozambique. During the same year, Mozambique also imported around 111 000 tonnes, valued at US$99 million. Major suppliers were South Africa, China, Japan, Turkey, and Portugal. Namibia in 2021 imported 26 000 tonnes of iron and steel worth around US$95 million, with major suppliers being South Africa, China, and Zambia.
For DRC, the import value of46 000 tonnes of iron and steel was valued at US$126 million in 2021, with major suppliers being South Africa, China, Zambia, and Turkey.
“Considering the proximity of these markets, and their current source markets, that are as far as Asia and Europe, there is no doubt that locally produced iron and steel will compete well in the region,” said Zimtrade.
The Manhize plant, being constructed to the tune of US$1 billion, will be commissioned in phases starting with an annual production of 600 000 tonnes, which will be gradually ramped up to 1,2 million in the second phase, 2,4 million in the third phase, and five million in the final phase, according to Disco’s production projections.
The WSA steel production figures released in June 2023 show that Africa produced 1,3 million tonnes of steel in 2022. At 5,5 million tonnes, South Korea was the world’s sixth largest producer.
Before the closure of Zimbabwe’s Iron and Steel Company (ZISCO), Zimbabwe used to be Africa’s largest iron and steel company.
“It’s an economic glory for the country and the continent at large,” the chief operations officer at Zimbabwe Institute of Foundries, Mr Dosman Mangisi told The Herald Finance and Business in an interview.
“Other smaller steel companies will be able to increase production due to the availability of cheap and good quality raw materials. The country will generate more foreign currency through exports and will also help the revival of steel foundries.”
Given the importance of steel and iron products in supporting the operations of many other industries and industrialisation, Zimbabwe’s import bill continues to grow.
In 2021, steel and iron products imports soared to nearly US$410 million from US$306 million a year earlier, according to figures from the Zimbabwe National Statistical Agency, driven by a series of public and private infrastructure programmes.
High-end steel and iron products have also pushed demand up.
According to ZimTrade, potential export markets for Zimbabwe include Zambia, Botswana, Angola, the Democratic Republic of Congo, Malawi, Mozambique, and Namibia.
According to Trade Map, Zambia imported iron and steel worth around US$226 million in 2020, with the majority coming from South Africa (US$113 million), China (US$64 million), Chile (US$27 million), and India (US$3 million). In terms of quantities, Zambia has been importing more iron and steel over the years, from around 58 000 tonnes in 2018 to around 81 000 in 2021.
“Leveraging on Zimbabwe’s short distance to Zambia, there is potential for Manhize Iron Steel Plant to produce products that will compete well in the neighboring country,” said Zimtrade.
In Malawi, most of the iron and steel imports, worth around US$83 million in 2021 came from China. In terms of quantities, Malawi imported 39 000 tonnes of iron and steel in 2021. The other major suppliers in Africa are South Africa, Zambia, and Mozambique. During the same year, Mozambique also imported around 111 000 tonnes, valued at US$99 million. Major suppliers were South Africa, China, Japan, Turkey, and Portugal. Namibia in 2021 imported 26 000 tonnes of iron and steel worth around US$95 million, with major suppliers being South Africa, China, and Zambia.
For DRC, the import value of46 000 tonnes of iron and steel was valued at US$126 million in 2021, with major suppliers being South Africa, China, Zambia, and Turkey.
“Considering the proximity of these markets, and their current source markets, that are as far as Asia and Europe, there is no doubt that locally produced iron and steel will compete well in the region,” said Zimtrade.