Zimbabwe’s steel sector is on the brink of a long-overdue transformation but remains shackled by the outdated Iron and Steel Industry Act of 1942, a colonial-era statute ill-suited for modern industrial ambitions, Mining Zimbabwe can report.
By Rudairo Mapuranga
According to Martin January, Training and Operations Manager at the Zimbabwe School of Mines, the archaic law poses serious obstacles to investment, job creation, and sustainable growth — particularly as dynamic players like Dinson Iron and Steel Company (DISCO) ramp up operations.
“Zimbabwe stands at a critical juncture in its industrial development, where modernising the antiquated Iron and Steel Industry Act of 1942 could unlock significant economic opportunities for both businesses and workers,” January stated.
Originally enacted during World War II, the Act was designed to maintain state control over steel production through a monopolistic framework centred around the now-defunct Zimbabwe Iron and Steel Company (ZISCO). Today, that model persists in law but not in practice — to the detriment of emerging private sector giants like DISCO, which is investing over US$1.5 billion in a massive steel manufacturing complex in Manhize.
“With the once-dominant ZISCO now non-operational, the legislation must evolve to support dynamic private sector players like Dinson Iron and Steel Company while protecting national interests,” January explained.
The Act effectively centralises power over licensing, production quotas, and pricing decisions, creating barriers to entry and stifling the flexibility required in a competitive, export-oriented industry. January highlighted that the law’s preservation of single-player dominance is counterproductive. “The current framework, conceived in a colonial era of monopolistic state control, now inadvertently hinders job creation and economic growth.”
He added that DISCO’s project — expected to be the largest integrated steel plant in Africa — represents exactly the kind of high-impact development Zimbabwe needs to industrialise, yet regulatory bottlenecks persist. January is calling for a multi-licensing system that welcomes both large-scale operators and smaller downstream firms, creating a diverse and inclusive steel value chain.
“By transitioning to a multi-licensing system, we can foster healthy competition while maintaining strategic oversight — benefitting both large operators and smaller downstream businesses,” he said.
Crucially, January argued that Zimbabwe must redefine steel legally — not as a mineral, but as a manufactured product. This single change would open new doors for trade, beneficiation incentives, and alignment with regional industrial policies.
“Redefining steel as a manufactured product rather than a mineral would create new export opportunities, translating to more stable jobs in mining, processing, and fabrication,” he stated. He further called for the introduction of modern environmental standards to ensure that Zimbabwean steel remains globally competitive, responsibly produced, and community-conscious.
Beyond regulations, the real-world human impact of reform is enormous. “The human impact extends beyond direct employment,” January noted. “A revitalised steel sector could support thousands of indirect jobs in transportation, equipment maintenance, and related services — particularly in steel-producing regions like Redcliff and Manhize.”
He also emphasised the value of building local capacity: “By linking investment incentives to skills development and technology transfer, we can ensure Zimbabwean workers gain valuable expertise for long-term career growth.”
January’s remarks echo broader concerns from the private sector and industrialists like DISCO CEO Ben Xu, who have repeatedly stressed that Zimbabwe’s steel potential cannot be fully realised without a modernised, investor-friendly legal framework.
With the African Continental Free Trade Area (AfCFTA) opening regional export markets and Zimbabwe’s industrial projects gaining momentum, the call to repeal or overhaul the Iron and Steel Industry Act of 1942 is growing louder. As January put it, these changes are not just about enabling private profits — they are about reshaping Zimbabwe’s entire steel economy and positioning the country as a competitive player in global trade.
