A new $800 million investment by Chinese metals giant Tsingshan Holding Group is set to transform Zimbabwe into Africa’s largest steel producer, dramatically reducing the country’s reliance on imports and fostering a new era of industrialization.
The investment, announced by a top company official, will be funneled through Tsingshan’s subsidiary, Dinson Iron and Steel Company (DISCO), to expand its massive steel plant in central Zimbabwe.
According to Wilfred Motsi, the project director at Dinson, the funds will be used for the construction of key infrastructure, including new rolling and steel plants, a centering facility, and a new blast furnace. Reuters reported.
The expansion is expected to double the plant’s annual production capacity from 600,000 to 1.2 million metric tons of carbon steel, positioning the South African nation as a significant regional supplier.
Zimbabwe’s economy, which has long grappled with a substantial steel import bill estimated at $1 billion annually. By producing steel locally, the country stands to conserve valuable foreign currency, improve its balance of trade, and reduce its exposure to volatile international market prices.
The Dinson steel plant, which was recently granted Special Economic Zone (SEZ) status, is one of the largest foreign direct investments (FDI) in Zimbabwe’s manufacturing sector.
Tsingshan’s broader presence in Zimbabwe includes investments in ferrochrome, coking coal, and lithium mining.
