EISAZ sounds alarm on steel industry, calls for urgent rescue plan

ROBIN PHIRI

The Engineering Iron and Steel Association of Zimbabwe (EISAZ), in partnership with the Ministry of Industry and Commerce, has launched the Engineering Iron and Steel Industry Report, sounding the alarm over a sector on the brink of collapse.

The report lays bare deep-rooted challenges crippling the country’s steel and manufacturing industry, which have already translated into revenue losses, shrinking capacity, and job cuts.

Speaking at the launch, EISAZ president, Engineer Lloyd Nyemba, issued a stark warning: without a clear and urgent rescue plan, Zimbabwe’s engineering and industrial sector risks sliding into complete deindustrialisation.

“The foundry industry right now is on the verge of collapse,” Nyemba said.

He highlighted the influx of cheap imports—many of them substandard—as one of the most immediate threats to the survival of local manufacturers.

“Most of these products come at very low cost and are duty-free. And at the same time, the local market is relying on imports of raw materials from the same countries that you are competing with,” he said.
“And you see, in that way, there’s no way we can compete with the imports when we are actually importing the raw materials from them. Steel is a heavy product, so the cost associated with the logistics is quite high, and therefore, it makes the situation complex. Then there’s zero-to-no tariffs on products that are produced locally and many products that are produced within the country.”

The report noted that despite strong demand for steel, local manufacturers are underproducing, largely due to the rampant export of scrap metal to neighbouring countries at giveaway prices. This practice has further undermined competitiveness and capacity, leaving domestic producers struggling against importers.

Primary steel production has become increasingly constrained, while manufacturers have failed to produce flat products in sufficient quantities. This has led to missed opportunities, particularly in the construction sector, which consumes over 50% of iron and steel products.

“Those who evaluate us, they say, but now you say you are producing steel, but why is it that still we have a huge import bill on steel, yet we are producing steel around? So we have to look deliberately at that capacity to make flat and heavy sections,” Nyemba said.
“The heavy sections are the ones that are used—your bridges, your storage buildings. The flat products, right now construction in terms of housing, the galvanized sheets, the roofing sheets, and a lot of related stuff. So it is very important to build that capacity.”

Nyemba added that the collapse of once-mighty players in the industry should serve as a warning.

“We have seen many giants falling. So those constraints and challenges, we have to tackle them head-on and turn around from just a rescue by becoming quite a dominant regional player. Without urgent intervention, the engineering and steel sector of Zimbabwe can become a dry market for imported finished goods with zero local manufacturing.”

He further stressed the need for consolidation of the industry, urging both small-scale and large producers to be aligned in reviving the sector.

Permanent Secretary in the Ministry of Industry and Commerce, Thomas Utete Wushe, applauded the combined effort of EISAZ and the National Employment Council for the Engineering, Iron and Steel Industry in producing the report.

“I’m pleased to note that the report that we saw today, that we are launching, confirms that engineering, iron and steel sector is the backbone of industrialisation,” Wushe said.
“It provides the steel and machinery to build our roads, our dams, bridges, the tools that power our mines and farms, and it’s the components that feed into energy, automotive, and manufacturing industries. So, truly, it’s not an exaggeration when we say that iron and steel.”

He called for a deliberate commercial strategy to rebuild the industry and position it as a cornerstone of Zimbabwe’s economic recovery.

“We need to ensure that we create some kind of commercial plan around iron and steel, so that we put all our resources into rebuilding this, which will be the poster of our economy. Today, the sector employs just over 15,000 workers.”