Kuvimba Mining House has been picked as the investment partner to breath new life into the Zimbabwe Iron and Steel Company, which has been shut for 14 years.
Addressing a post Cabinet media briefing yesterday, Minister of State for Presidential Affairs and Monitoring Implementation of Government Programs, Joram Gumbo said Kuvimba Mining House was recommended as the investment partner for the resurrection of Zimbabwe Iron and Steel Company (ZISCO) Steel.
“The standard process to find an investor or partner for ZISCO-Steel was undertaken under guidance from the Zimbabwe Investment Development Agency (ZIDA) and incorporated inputs from the State Enterprises Restructuring Agency (SERA).
“Initially, nine prospective investors expressed interest, and after a review by the Executive Management team, four bidders were shortlisted, following further, due diligence, the bidders were reduced to three, out of the three, Kuvimba Mining House was recommended.
“Accordingly, Cabinet approved that Kuvimba Mining House be engaged as the Investment partner for the resuscitation of ZISCO Steel,” said Gumbo.
Zisco stopped operations in 2008 amid allegations of mismanagement, corruption as well as obsolete equipment.
In 2020, the government revealed that the country was losing up to US$1 billion annually in steel imports after the closure of Zisco.
Zisco is 89% owned by the government.
In it’s prime, Ziscosteel exported steel products to Europe, Asia as well as neighbouring African countries before its demise in 2008, owing to the pressures of Zimbabwe’s shattered economy, gross mismanagement and corruption.
The government also holds a 65% stake in Kuvimba, which also has nickel and chrome operations.