Source: Industrial revival takes shape: VP Chiwenga – herald
Mukudzei Chingwere in KWEKWE
ZIMBABWE’S quest for an empowered upper-middle-income economy by 2030 is shaping up, following a positive uptick in the country’s industrial capacities.
Industrial revamping and revival are central to the country’s sustainable economic growth. Since the advent of the Second Republic, the Government has been actively pushing policies and strategies to achieve this goal.
Vice President Dr Constantino Chiwenga was in Kwekwe yesterday on a tour of strategic national economic projects and expressed satisfaction with the work seen at four firms in the Midlands.
At Sable Chemicals, which manufactures fertiliser, the VP was informed that the company’s revival was now at an advanced stage and was expected to be completed in April ahead of production in May.
At Zimchem, he observed the company’s revival efforts, which have generated interest from neighbouring Mozambique, where an order could potentially generate US$1 million a week.
The company is awaiting further investments before taking up this offer.
Globally, Union Alloy, which produces ferrochrome, has built five furnaces and is now waiting for connection to the national grid to commence operations.
VP Chiwenga expressed satisfaction with the progress made and urged the companies to maintain their current trajectory and deliver tangible results, rather than engaging in mere discussions in boardrooms.
“Sable Chemicals shut down in 2022 for several reasons, but these issues have now been addressed. The Government has boldly intervened through the Mutapa (Investment) Fund to inject necessary funds,” said VP Chiwenga.
“The chief executive informed us that at the current pace, all work will be completed by the end of April, and we should expect the first bags of ammonium nitrate to be delivered by late May to early June.
“This has significant implications for our projected economic growth in the agricultural sector, which is a key driver of our economy. Producing fertiliser locally will allow us to manufacture ammonium nitrate, which is vital for our agriculture.”
VP Chiwenga said the ultimate goal for local fertiliser production is to bring prices closer to single digits.
Said the VP: “I am also pleased to hear from management that they plan to produce 50 000 tonnes in time to support this year’s winter farming.”
Sable Chemicals reported that its fertiliser production capacity will be 240 000 tonnes per annum – significant for the economy, as the country requires 380 000 tonnes annually to meet local farmers’ needs.
Management indicated that the current price per bag of fertiliser ranges from US$36 to US$50. However, if the fertiliser is produced locally, they anticipate prices could drop to between US$17 and US$22 per bag.
VP Chiwenga also toured Itrachem, a company that specialises in making explosives specifically for the mining sector.
“The mining industry is growing rapidly, and to extract minerals from underground, we need explosives.
“Until now, we have been relying on imports for these essential materials,” he said.
Speaking about Global union Alloy, a company focused on producing high carbon ferrochrome, VP Chiwenga, noted their progress in completing the construction of five furnaces, which are now ready for operation.
“They have informed us that the only remaining step is to connect to ZESA for power supply. Once that is completed, the company will begin producing high carbon ferrochrome.
“As you may know, chrome is now one of the most critical strategic minerals in high demand. We discussed with the company the importance of reaching the highest levels of value addition and beneficiation.
“We need to go beyond simply producing and exporting high carbon ferrochrome; we must pursue further beneficiation,” said VP Chiwenga.
He also visited Zimchem, where he saw revival offshoots.
The company’s work has so far generated interest from Mozambique where an order book could potentially generate US$1 million a week, has already been placed but the company awaits further investments before it can take up the order.
Zimchem’s production spans several areas, including agriculture and infrastructure development.
“I was impressed to learn that they have secured an order from Mozambique that will earn them millions of dollars.
“They are seeking financial assistance to meet this demand, and we will consider how we can support their capacity,” said VP Chiwenga.
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