Connect with us

Hi, what are you looking for?


Zimbabwe invites bids for fallen steel giant

HARARE, Aug 25 – Zimbabwe on Wednesday invited new bidders to take over the collapsed parastatal ZISCO steelmaker, after rejecting a 583-million-dollar offer from ArcelorMittal in May.

"Bids for a strategic partner for Zimbabwe Iron and Steel Company (ZISCO) are now open," Industry Minister Welshman Ncube said in a statement.

The government is looking to sell its 70 percent stake in the company, once one of Africa\’s leading steel producers with capacity to produce up to one million tonnes a year.

ZISCO stopped operations in 2008 at the height of Zimbabwe\’s economic and political crisis due to a lack of funding.

Ncube said the offers must reach the government by September 24.

In May, government rejected bids by ArcelorMittal and India\’s Jindal Steel and Power, with President Robert Mugabe saying the two companies were too big.

"The feeling is that we are a small country and we will have problems with a big multilateral company," Ncube said at the time.

"That is the feeling of the presidency, as strange as that might seem," he said.

ArcelorMittal had said it was ready to invest 4.3 billion rands (583 million dollars) for the possible acquisition of ZISCO.

Advertisement. Scroll to continue reading.

The country\’s coalition government of Mugabe and Prime Minister Morgan Tsvangirai took office in February last year, and sees the sell-off of state entities as part of reforms needed to revive an economy shattered by a decade of hyperinflation that ended with dollarisation last year.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...