This comes amid suspicions that Kuvimba acquired its assets from a company linked to Kudakwashe Tagwirei, a Zimbabwean businessman who was sanctioned by the US Treasury over bribery and corruption charges.
At its peak, the ZISCOSTEEL produced approximately one million tons of steel per year and employed 5,000 people while indirectly employing another 55,000 people.
It was a key source of foreign money for Zimbabwe until the 1970s, when it began to dwindle. It was alleged in 2006 that the steel plant was being robbed, and by 2010, it was unable to pay its employees.
Previous attempts to reactivate it were unsuccessful due to an outstanding $300 million debt and outmoded gear at the plant.
In April 2021, the Zimbabwean government issued a request for proposals from investors to resurrect the enterprise, which is located in the Midlands province’s chrome and platinum-rich region.
According to Joram Gambo, Minister of State for Presidential Affairs, the new business partner already has gold and nickel holdings and was chosen after due diligence inspections.
The country is known to have vast natural resources, including up to 700 million tonnes of iron ore deposits.
Aside from iron ore, the country possesses enormous quantities of limestone and coal, both of which are required in the production of steel.
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