$800m Tsingshan Investment Aims to Revive Zimbabwe’s Steel Industry

China’s Tsingshan is injecting $800m into Zimbabwe’s DISCO steel plant, doubling capacity to 1.2m tons, adding power resilience, jobs, and regional export potential (image source)

Zimbabwe is once again at the centre of Africa’s industrial conversation after China’s Tsingshan Holding Group announced an additional US $800 million investment in its local steel operations. The project, run by Tsingshan’s Zimbabwean subsidiary Dinson Iron and Steel Company (DISCO) in Manhize, Midlands Province, is billed as a potential turning point for the nation’s long-stalled industrial revival.

The announcement, first spotlighted in the documentary How and Why Africa’s $800 Million Largest Steel Plant, comes as policymakers and investors seek anchors to rebuild Zimbabwe’s manufacturing base. Under the expansion plan, DISCO aims to double production capacity from 600,000 to 1.2 million metric tons of carbon steel annually. The investment covers construction of a new blast furnace, rolling mills, processing plants, and supporting infrastructure.

Energy resilience is central to the project. Tsingshan has begun work on a 50 MW thermal power station while also capturing furnace gas to supply up to 20% of the facility’s electricity needs.“Energy reliability is the difference between sustainable industry and collapse. By internalising power supply, DISCO reduces exposure to Zimbabwe’s fragile grid,” said Dr. Henry Mukonoweshuro, industrial policy analyst at the University of Zimbabwe.

The project inevitably draws comparisons with the once-mighty Zimbabwe Iron and Steel Company (ZISCO). For decades, ZISCO supplied domestic and regional markets, sustaining thousands of jobs in Redcliff. But by the late 2000s, mismanagement, ballooning debt, obsolete equipment, and power shortages forced the company to shut down. ZISCO’s collapse left Zimbabwe importing up to US $1 billion of steel annually, draining foreign currency reserves and stifling construction and manufacturing.“This expansion is more than just new furnaces; it’s about reviving the heartbeat of Zimbabwe’s industry,” said Shepherd Chikowore, chair of the Steel Users Association.

If successful, the DISCO expansion could deliver wide-ranging benefits:

• Import substitution saving hundreds of millions in forex.

• Direct employment at the factory and indirect opportunities in mining, logistics, and services.

• Skills training for metallurgists, engineers, and technicians.

• Affordable local steel to boost construction, infrastructure, and light manufacturing.
  

At 1.2 million tons annually, Zimbabwe could not only satisfy domestic demand but also export under the African Continental Free Trade Area (AfCFTA), aligning with AU Agenda 2063 goals of industrialisation and intra-African trade. A regional economist mentioned, “If managed well, Zimbabwe could reposition itself as a steel hub for Southern Africa. But the critical test is converting capacity into competitive exports without flooding the market.”

Still, risks remain. Regional demand may not absorb 1.2 million tons without price pressure. Sustaining reliable power generation, securing raw material supply from local iron ore deposits, and ensuring efficient transport corridors into Zambia, Mozambique, and South Africa will all be crucial. Tsingshan has pledged to scale production cautiously, matching output to demand curves while maintaining flexibility for further expansion. Zimbabwe’s Parliament Portfolio Committee on Industry and Commerce is expected to summon DISCO and ministry officials in October for progress updates. Civil society groups have also called for transparent disclosure of environmental impact assessments and labour contracts to ensure benefits reach local communities.

For now, the scale of investment has generated cautious optimism. After years of industrial stagnation, the US $800 million injection stands as one of the largest single foreign direct investments into Zimbabwe’s manufacturing sector since independence.