Industry Minister Sekai Nzenza has told Parliament that the government has finally found the right investor for ZISCO. Steel.
ZISCO Steel, a giant steel manufacturer is failing to operate due to a lack of investors who will inject funds.
Various suitors such as ESSAR from India have tried their luck with the company, but it failed to produce results. At one time Essar announced that it had completed the acquisation of ZISCO Steel before the deal fell apart.
However, answering a question from Senator Chief Ntabeni who wanted to know whether there is still hope for the company, Nzenza said investors are flying into the country this week.
‘’Thank you for the question. It has come at the right time. I say so because I have not been giving an update on the state of affairs at ZISCO Steel. It took us 12 months for us to get the right investor with the right expertise. I would like to inform this House that we have identified through the diligence process, Kuvimba as the company that will resuscitate ZISCO.
‘’This was approved in Cabinet around February / March. Since then, there has been a lot of activity where this company has carried out its due diligence at ZISCO, working together with the management at ZISCO,” she said.
MOU for ZISCO Steel has been drafted
Nzenza also revealed that an MOU has since been drafted and is in the process of being finalised.
‘’Already, we have a draft MOU that needs to be finalised in working with the different legal frameworks from the investor, as well as, from the ZISCO team.
‘’We are also looking at the latest technology like you said. We have already looked at the latest technology that focuses on green energy from companies in Germany to the extent that some of these companies we have identified, do not know much about ZISCO but do have the expertise in making steel. ‘’They are visiting Zimbabwe on Sunday and they are going to be at ZISCO on Monday. That shows progress,’’ she said.
