Zimbabwe Eyes Industrial Fund Support to Revive Lancashire Steel

Manhize Steel Plant is producing wire rod in the Midlands of Zimbabwe.

The Government of Zimbabwe is preparing to deploy state-backed industrial financing to revive Lancashire Steel, signalling a renewed push to rebuild domestic manufacturing capacity and reduce reliance on imported wire products.

Industry and Commerce Minister Mangaliso Ndhlovu said Lancashire Steel is being prioritised for possible funding under the Industrial Development Fund. The company is a subsidiary of Zisco Steel, which has faced prolonged operational and financial challenges.

“Lancashire Steel, we are prioritising them. We think they are likely to get some bit of funding from the Industrial Development Fund because the wire bars they need are already coming from Manhize,” Ndhlovu said.

Leveraging Local Steel from Manhize

The availability of wire rod from the Manhize Steel Plant is reshaping Zimbabwe’s industrial outlook. For the first time in years, local downstream manufacturers have access to reliable upstream steel inputs.

Wire products used extensively in construction, mining, agriculture, and infrastructure remain one of Zimbabwe’s most import-dependent industrial segments. This dependence has strained foreign currency reserves and exposed the country to regional supply chain disruptions.

“That’s the raw material that Lancashire Steel needs to then process different types of wires for our country,” Ndhlovu said. “It’s still a huge import-dependent sub-sector that we want Lancashire Steel to come in and play.”

From Raw Exports to Value Addition

The initiative reflects a deliberate policy pivot away from exporting raw materials while importing finished industrial goods. Authorities are positioning steel as a strategic lever to drive industrialisation under Vision 2030, particularly as infrastructure development accelerates.

Demand for wire products is expected to grow alongside road construction, housing projects, mining expansion, and power transmission investments. Reviving Lancashire Steel would allow Zimbabwe to convert domestic steel output into downstream industrial growth.

Once a cornerstone of the country’s manufacturing base, Lancashire Steel declined in parallel with Zisco Steel during two decades of deindustrialisation. Ndhlovu said the company now has a “bigger opportunity” in 2026 as government policy increasingly supports import substitution and beneficiation.

Conditional, Monitored Funding

The Industrial Development Fund, administered through the Venture Capital Fund, is structured to provide conditional financing aligned with national priorities such as value addition, export development, and import replacement.

“They have to apply, there is a rigorous process,” Ndhlovu said. “We have put strict safeguards to make sure that these monies are repaid.”

He stressed that government support would be catalytic rather than a blanket bailout, noting that private investors are also entering the sector. Authorities say maintaining competition is essential to ensuring affordable products for consumers.

Strategic Industrial Implications

Zimbabwe remains largely excluded from international capital markets due to external arrears and debt constraints, limiting fiscal space for large-scale industrial subsidies. However, the emergence of local wire rod supply from Manhize near Mvuma in the Midlands could significantly improve the economics of domestic processing.

If Lancashire Steel secures funding, modernises operations, and scales output, Zimbabwe could reduce import dependence, conserve foreign currency, and begin building a competitive regional steel value chain.

Lancashire Steel revival Zimbabwe