THE Government is intensifying efforts to revive and expand downstream industries across Zimbabwe, leveraging the massive investments recently made in the iron and steel sector, particularly at the Dinson Iron and Steel Company (DISCO) plant in Manhize, according to Finance, Economic Development and Investment Promotion Professor Mthuli Ncube.

Minister Ncube made these remarks in a presentation delivered on his behalf by the Chief Director in the ministry, Mr Joseph Mverecha, during a public lecture hosted by the Zimbabwe National Defence University.

According to Minister Ncube, the Manhize steel project, which is now regarded as one of the largest integrated steel developments in Sub-Saharan Africa, has the potential to reshape Zimbabwe’s industrial landscape through its ripple effects on manufacturing, engineering and value-addition industries.

The Government’s focus is now shifting towards ensuring that such large-scale investments translate into broad-based industrial growth that benefits local economies and communities.

It envisions a strong resurgence of the foundry and metalworking industries, particularly in traditional industrial hubs such as Bulawayo and Gweru, which once anchored the nation’s manufacturing base.

DISCO, a subsidiary of the Chinese conglomerate Tsingshan Holdings, is expected to produce up to 1.2 million tonnes of steel annually once fully operational.

This output is anticipated to stimulate growth across several linked sectors, including automotive parts manufacturing, construction materials, agricultural equipment and mining supplies.

If the downstream expansion gains momentum, it could help re-industrialise Zimbabwe’s major cities, create thousands of new jobs and restore the country’s position as a regional manufacturing hub — a role it last played more than two decades ago.

“We are seeing significant investments in the iron and steel sector that are beginning to transform the economy,” said Minister Ncube.

“However, the real impact will come when downstream industries begin to utilise locally produced steel. We are working to create an enabling environment where manufacturers, fabricators and foundries can grow using inputs from Manhize.

“Bulawayo and Gweru were vibrant centres of industrial activity in the 1980s and 1990s. Our goal is to restore that vitality by reconfiguring these sectors. Bulawayo should once again become the heart of the foundry industry, Gweru should revive its engineering legacy and Harare, too, must play its part in supporting the new industrial value chain.”

Focus on pharmaceuticals and fertiliser

Beyond steel, the Government said it has also recorded encouraging growth in several other sectors, including food and beverage processing, dairy, milling, cement production and construction materials.

Capacity utilisation in the local economy is generally growing across key sectors.

He noted that efforts were underway to strengthen the pharmaceutical and fertiliser industries, with a view to increasing capacity utilisation and achieving self-sufficiency in these critical production areas.

Minister Ncube said low utilisation levels in the pharmaceutical and fertiliser industries remained a concern, prompting targeted interventions aimed at revitalising these critical sectors.

These sectors have mainly been affected by some underlying structural and operational constraints that continue to affect many sub-sectors of the economy.

Regarding the pharmaceutical industry, he said the country wanted to be able to produce its own medicines, hopefully with the help of Indian investors and some joint ventures.

“In the case of pharmaceuticals, the country wants to be able to produce its own medicines — possibly through joint ventures and partnerships, including with Indian investors,” he said. “The goal is to reduce dependence on imported drugs and ensure affordable access to essential medicines.”

Minister Ncube said the Government aims to revitalise the chemicals and agro-inputs industries, which were central to agricultural productivity and food security.

Although some recovery is being recorded in agro-processing and packaging, much of the current production remains dependent on imported inputs.

The Government is seeking to adopt a more sector-specific approach to identify and address bottlenecks, with the ultimate objective of enhancing competitiveness and building a resilient manufacturing base.

Analysts say the success of these efforts will hinge on continued macroeconomic stability, improved infrastructure and a consistent power supply to support the anticipated industrial growth.

Economist Mr Tinevimbo Shava welcomed the Government’s drive to revitalise downstream industries, saying it has the potential to grow the local economy, particularly in traditional industrial hubs.

“The Government’s renewed focus to revive downstream industries could significantly reduce Zimbabwe’s import dependence and boost exports of finished and semi-finished goods,” he said.

“If attained, this will significantly bolster our local economy, mainly in the traditional industrial cities like Bulawayo and Gweru.”

Another economist, Ms Gladys Shumbambiri-Mutsopotsi, said revitalising downstream industries was pivotal for Zimbabwe’s industrial growth.

“The revival of downstream industries marks a defining moment for Zimbabwe’s re-industrialisation drive,” she said.

“What is key now is ensuring local SMEs (small and medium enterprises), particularly in Bulawayo and Gweru, benefit from this momentum through access to finance, skills transfer and reliable energy supply.”

The renewed focus on industrial recovery aligns with the Government’s broader vision of transforming Zimbabwe into an upper middle-income economy by 2030 through inclusive, sustainable industrialisation and value chain development.

These initiatives form part of the broader National Development Strategy 1, which prioritises industrialisation, value addition and sustainable job creation as key pillars of economic transformation. – Sunday Mail