- December 2, 2020
- Posted in NEWS
Finance minister Mthuli Ncube said government is set to revive the defunct and debt-stricken Ziscosteel in 2021.
While presenting the 2021 national budget statement Ncube said if Ziscosteel is revived government will save close to US$1 billion.
“The revival of Ziscosteel is key to the economy through its potential benefits in job creation and value chain impact in companies such National Railways of Zimbabwe and Hwange Colliery and the resultant
savings in foreign currency in excess of US$1 billion through importation of steel products,” Ncube said.
“In 2021, Government will resuscitate Ziscosteel through innovation and harnessing inward opportunities, while working closely with local
investors. This will be done through courting new investors who will bring new technology and new skills.
“While the search for new investors is in progress, Government is currently implementing a short-term roadmap of resuscitating the firm’s subsidiaries which include ZimChem, Lancashire Steel, and Buchwa
Iron Mining Company (Bimco) among others,” Ncube said.
Ncube also said “current operations are targeted at raising capital through the sale of waste and boulders, among other activities.”
In September the Ziscosteel board cancelled all deals it entered into with various business entities as it views them as unfavourable to its revival plan.
This was confirmed by board chairperson, Martin Manhuwa while briefing a government inter-ministerial team that toured the giant Ziscosteel plant in Redcliff.