The Deputy Minister of Industry and Commerce Chiratidzo Mabuwa says the government is still trying to find a suitable investor for ZISCO and has already identified new suitors.
She said the government had entered into a deal with Indian company ESSAR but it fell apart because of depressed prices in the market for the product.
ZISCO was shut down eight years ago largely due to mismanagement and one research study says the closure could have cost the country over $20 billion.
Binga South Member of Parliament Joel Gabbuza told Parliament last year that ZISCO was so strategic to the country’s economy that a quarter to half of the country’s problems would be resolved if it came into operation.
“If we cannot get an investor why can we not put our own resources to make sure ZISCO Steel starts operating as one of the issues His Excellency mentioned in His Speech? ZISCO Steel is definitely going to assist a lot in making sure that the economy of Zimbabwe starts ticking,” Gabbuza said.
“If ZISCO Steel started operating today Mr. Speaker, I think one quarter if not 50% of our problems would be a thing of the past. It is so intricate and interlocked to all aspects of the economy of this country, ranging from mines, hospitals, agriculture and others that I have mentions.”
Mabuwa said she could not promise anything but would inform the nation once a deal had been struck.
Chief Charumbira however took her to task reminding her that only last year she had said ZISCO would be back on stream by March.
“What do you do with a Minister who says, by March things will work and then come this year and says no I am coming with another explanation?” the chief asked.
“The Chief has spoken what – should be done to me,” Mabuwa responded. “The Vice President, may give the direction as to what should be done – but what I am going to say is that Chief, as a woman I do not lose hope even if I go through a miscarriage. I will do the needful and work on conceiving and producing a child but it is up to the husband.”
Q & A:
HON. SEN. CHIEF NTABENI: Thank you Mr. President. My question goes to the Minister of Industry and Commerce. Minister, this Senate wants to know the status of the sleeping giant ZISCO Steel. When is this sleeping giant going to operate in full swing? People of ZISCO Steel are suffering Minister, shame! I thank you.
THE DEPUTY MINISTER OF INDUSTRY AND COMMERCE (HON. MABUWA): Thank you Mr. President. I agree that the sleeping has been sleeping giant for too long and that is a cause of concern of Government as well as the people of Zimbabwe. We are not resting on the issue of ZISCO Steel. As you know once we had a deal that we were chasing with ESSAR which at the end of the day, fell apart because of the depressed prices in the market for the product.
Now, we did not sleep; what we have done now is that we have a Committee that is currently looking at the way forward and I am happy to say that we have identified other suitors. We are also looking at other strategies of not necessarily perhaps giving the possible suitors the whole outfit or the whole portfolio of the giant, but perhaps compartmentalising it or selling or attracting investors in special SBUs (Strategic Business Units) that are within ZISCO Steel. We are thinking that in that way, we are able to peacefully recover the ZISCO Steel. I cannot say at the moment how far we have gone with those suitors, but once the information is good for public consumption then we are going to be informing the nation. I thank you.
HON. SEN. CHIEF CHARUMBIRA: Mr. President, only last year around February, I was sitting next to the Deputy Minister to my left. This particular issue was raised and she promised, but I was very surprised the way she handled the issue. She said that all the deals in ZISCO Steel had gone through and that by March last year, it would be fully operational. We raised supplementary questions as to the authenticity of what she was saying. She said in fact, you do not know that something was not happening at ZISCO but things are now in order. Now, I am surprised; she seems to be saying the contract which subsisted last year somehow something has changed in that contract. What do you do with a Minister who says, by March things will work and then come this year and says no I am coming with another explanation? Thank you. – [HON. SENATORS: Hear, hear.]-
HON. MABUWA: Thank you Mr. President Sir. The Chief has spoken what – should be done to me. The Vice President, may give the direction as to what should be done – [Laughter.] – but what I am going to say is that Chief, as a woman I do not lose hope even if I go through a miscarriage. – [HON. SENATORS: Hear, hear.]- I will do the needful and work on conceiving and producing a child but it is up to the husband.
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