Steel War Brews: Zimbabwe Rises as South Africa’s Plants Face Closure

A Blast furnace at Dinson Iron and Steel Company (image source)

A new industrial narrative is unfolding in southern Africa: Zimbabwe, once reliant on imported metal, is strengthening its steel production while South African mills are struggling. At the forefront is Dinson Iron and Steel Company (DISCO), backed by a US$800 million Tsingshan investment, reviving industrial capacity at the Manhize plant near Mvuma.

Forging Zimbabwe's Steel Future

Reports from Reuters confirm Tsingshan’s expansion backed by US$800 million to take annual carbon steel production from 600,000 to 1.2 million tonnes. Currently, DISCO is manufacturing steel products—including 16mm to 25mm deformed bars—at around 300 tonnes per day, with ambitions to double output in the near future.

Economist Knox Mushava underscores the strategic significance:

“Steel is not just an industry—it’s a strategic asset. Zimbabwe is reclaiming its industrial autonomy.”

South Africa's Decline and Zimbabwe's Opportunity

Industry data show that South Africa’s steel output has fallen by approximately 30% since 2018, while imports have surged by 71%, with foreign steel now covering 36% of national consumption. With DISCO ramping up, Zimbabwe is filling the void in the regional market.

DISCO Project Manager Wilfred Motsi says:

“We’ve received orders from South Africa, Zambia, and Mozambique.”

Energy Synergy and Industrial Resilience

DISCO’s ability to sustain operations stems from self-supply through a 50 MW thermal power plant and gas recovery systems meeting 20% of internal energy needs. Energy reports also highlight future clean-energy partnerships using wind and hydro to further strengthen resilience.

Economic Impact and Local Growth

The steel plant’s early production is supporting Zimbabwe’s construction sector and generating employment opportunities. Analysts expect that once the facility reaches its full scale of 1.2 million tonnes—and potentially up to 5 million tonnes—it could add billions of dollars in annual economic output, cementing Zimbabwe’s role as a regional steel hub.