IN THIS exclusive interview, The Financial Gazette’s Almot Maqolo (AM) sits down with Chiedza Chigombe, the president of the Engineering Iron and Steel Association of Zimbabwe (EISAZ), to delve into the current state of the industry, the challenges it faces, and the strategies EISAZ is implementing to foster growth, innovation, and sustainability. With the anticipation of the Manhize steel plant coming online and a projected annual export target of US$6 billion by 2026, Chigombe shares insights on the sector’s potential to become a major economic driver for Zimbabwe.
AM: What is the current state of the engineering, iron and steel industry in Zimbabwe and how has EISAZ been addressing the challenges facing the sector?
CC: The EIS Sector currently has over 400 companies employing 13 020 employees. The sector generates more than US$1,45 billion worth of exports, thus contributing towards the country’s much-needed foreign currency reserves. The sector’s production is skewed towards intermediate products (93,6 percent), implying that there is potential for production of high-value consumer and capital products.
We do have a myriad of challenges that need to be addressed to enhance our competitiveness, growth, and contribution to the economy. These include an influx of cheap products from Asia, power outages and high Zimbabwe Electricity Distribution Company (ZETDC) tariffs, lack of policy framework for scrap metal exports, high city council bills, and lack of funding for retooling. Delays in the processing of value-added tax refunds are depriving the sector of timely funds for investment into prod
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