The Manhize steel plant project, spearheaded by the Zimbabwean government, is poised to mark a transformative phase in the nation’s industrial landscape, positioning Zimbabwe as a leading steel producer in Africa. This ambitious initiative, however, has been subject to controversy due to a lack of public communication, leading to perceptions of it being a project solely for the benefit of the ruling ZANU PF party, rather than a national endeavour.
Despite initial challenges, the Manhize plant has commenced operations, with logistical hurdles anticipated to impact its momentum. The procurement of raw materials from Hwange, facilitated by a proposed 50-kilometer railway line connecting Mvuma and Manhize, remains a critical component of the project. In the interim, the transportation of materials will rely on road haulage, a decision borne out of an unmaterialized contract with the National Railways of Zimbabwe (NRZ) in 2022, leading to logistical complications.
Tsingshan Holdings Group Limited, in collaboration with NRZ, announced plans to construct the railway link, a venture that has yet to come to fruition. As a temporary measure, haulage trucks will be employed, despite the inefficiencies and added costs posed by poor road infrastructure. Joseph Shoko, Dinson’s Public Relations Manager, revealed that the plant currently holds over 50,000 tonnes of coal stockpiles, highlighting the logistical challenges faced in transporting raw materials. He expressed doubts about the railway line’s completion by the project’s full production phase, citing the high costs associated with such infrastructure developments.
The rail network, crucial for efficient goods movement, suffers from deterioration, with the NRZ’s infrastructure showing signs of wear and posing risks of derailments. Despite efforts to modernise and attract investment, NRZ’s initiatives have yet to yield significant improvements. A notable partnership between the NRZ, the Zimbabwean government, and India aims to enhance the railway firm’s capabilities through an $81.2 million agreement with RITES Limited for the supply of locomotives and wagons.
The Manhize plant’s impact extends beyond its industrial significance, with the employment of 1,500 workers contributing to national economic growth and the potential for direct employment figures to reach 10,000 as production escalates. The project is projected to generate substantial revenue, with expectations set high for the plant’s contribution to the regional steel market.
Efforts to alleviate the strain on Zimbabwe’s road network include the prioritisation of a railway line between Manhize and Mvuma, linking to the national railway grid and facilitating the efficient transport of bulk goods. Economists and industry stakeholders emphasize the importance of rail transport for achieving economies of scale and minimising road damage, highlighting the need for swift action in railway line construction.
The Manhize steel plant is expected to significantly reduce the cost of raw materials in the domestic market, particularly benefiting the construction sector and marking a significant development since the closure of Zisco in 2008. This project not only represents a step forward in revitalising Zimbabwe’s steel industry but also the critical need for infrastructure development and efficient logistics in enhancing national economic prospects.
