Parly pushes for urgent overhaul of Zimbabwe’s outdated steel laws

CLOUDINE MATOLA

Parliament has called for an urgent amendment to Zimbabwe’s outdated Iron and Steel Act, with legislators warning that the 1942 law is crippling the country’s steel industry, undermining export competitiveness, and hindering economic growth.

Clemence Chiduwa, chairman of the Parliamentary Portfolio Committee on Industry and Commerce, said Zimbabwe’s steel sector is being held back by an antiquated legal framework that treats steel products like minerals, forcing all exports through the Minerals Marketing Corporation of Zimbabwe (MMCZ) — a process he described as outdated, inefficient, and damaging to the country’s industrial potential.

“Zimbabwe is still operating under a steel law that dates back to 1942 — that’s over 80 years ago,” Chiduwa told Business Times. “These outdated provisions classify products like rebar as minerals that must be monopolised by the state, forcing all export clearance through MMCZ. This approach is no longer practical and severely limits our ability to grow the steel industry and boost the economy.”

Chiduwa highlighted widespread frustration within the steel sector over MMCZ’s inefficiencies, which he said are not only delaying exports but also driving away key regional buyers.

“Many clients from neighbouring countries such as Mozambique and Malawi are unaware that MMCZ is the exclusive export agent for steel products from Zimbabwe,” Chiduwa explained. “After making payment, these buyers expect to collect their orders within days. But MMCZ’s registration process for new clients alone takes over a month.”

He also pointed to frequent errors in export documentation and excessive delays in obtaining critical export permits such as the customs declaration form (CD1) and Bill of Entry (BOE).

“MMCZ frequently makes mistakes when processing export documentation,” Chiduwa said. “These inefficiencies have led to cancelled orders, damaged Zimbabwe’s reputation as a reliable steel supplier, and undermined confidence in companies like Dinson Iron and Steel.”

Dinson Iron and Steel Company (DISCO), Zimbabwe’s largest steel producer based in Manhize, is seen as critical to the country’s industrial revival. But Chiduwa warned that unless urgent legal reforms are implemented, DISCO could face the same fate as the once-mighty Zimbabwe Iron and Steel Company (ZISCO), which collapsed due to years of neglect, mismanagement, and outdated policies.

“We cannot afford to let DISCO suffer the same fate as ZISCO,” Chiduwa said. “Our policies must support — not suffocate — our industrial giants.”

Chiduwa contrasted the sluggish, MMCZ-controlled steel export process with the efficient procedures for general industrial products, which are overseen by private customs clearance companies.

“For general industrial products, the entire export process, including obtaining the CD1 form and completing the BOE, takes roughly a week,” he explained. “In contrast, steel exports controlled by MMCZ can take more than a month — and that’s if there are no errors along the way.”

Private customs agents, he noted, are significantly more efficient and flexible, quickly resolving documentation issues and ensuring smooth export processes. By comparison, MMCZ’s rigid and bureaucratic approach has made steel exports one of the least competitive in the Southern African region.

“Zimbabwe has abundant iron ore reserves, yet we have the least competitive steel export process in the region because of these outdated laws and inefficiencies,” Chiduwa said.

Parliament is urging the Ministry of Industry and Commerce to fast-track the review and amendment of the Iron and Steel Act to align the legal framework with Zimbabwe’s industrialisation goals under the National Development Strategy 1 (NDS1).

“Steel is at the heart of any successful industrialisation agenda,” Chiduwa said. “The legal environment must reflect that reality and allow our steel producers to compete on a regional and global stage.”

He proposed several key reforms, including amending the Iron and Steel Act to modernise regulations, revising Statutory Instrument 63 of 2009, reclassifying steel products so they are no longer treated as mineral products and removing MMCZ’s exclusive control over steel exports.

“Amending SI 63 of 2009 and redefining how we categorise steel products is essential,” Chiduwa said. “We need to stop treating steel like a raw mineral and start recognising it as a critical industrial product that can drive growth and exports.”

Chiduwa’s remarks come as Zimbabwe positions itself to become a key steel producer in the region, with the Manhize-based DISCO project seen as central to this ambition. However, industry experts say that without swift policy reforms, Zimbabwe will struggle to realise the full potential of its steel sector.

“Zimbabwe has the resources, the expertise, and the regional demand to build a world-class steel industry,” Chiduwa said. “What we lack are modern, efficient policies and systems to support that growth. Parliament is ready to lead that change — but the Ministry must act.”