Zimbabwe's Local Content Strategy is not only revitalising the iron and steel sector, but is also delivering tangible economic benefits through increased job creation and a significant reduction in steel imports.
Experts note that the strategy is strengthening the country's industrial base, conserving foreign currency and reshaping the regional steel landscape.
Discover moreSports news coverageHealth lifestyle tipsZimbabwe travel guideAnchored in the National Development Strategy 1 (NDS1) and NDS2, the Local Content Strategy prioritises domestic production, value addition and beneficiation.
In the iron and steel sector, this approach is now yielding measurable results.
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The revival of iron and steel production has triggered employment growth across mining, smelting, rolling, fabrication and downstream engineering industries.
From iron ore extraction to finished products such as steel reinforcement bars (rebar), wire rods, structural steel and fabricated mining components, each stage of the value chain is creating both direct and indirect jobs.
Beyond exports and production figures, the sector's revival is delivering inclusive growth.
Thousands of workers are now employed in steel plants, foundries, rolling mills and engineering workshops.
Additionally, employment has been generated in transport, logistics, maintenance, equipment supply and energy services, as well as within the small and medium enterprises supporting the sector.
NDS2 explicitly recognises the iron and steel value chain as a catalyst for downstream industries:
Discover moreLocal news alertsEntertainment newsNational parks tour packages"Furthermore, the iron and steel value chain will create opportunities for downstream industries which include foundries, iron and steel processors, metal fabricators, assemblers, casting, tool and dies, electricals and general engineering sub-sectors.
"Government will prioritise local procurement support for domestic production by requiring that Government infrastructure projects also source iron and steel materials from local producers."
This deliberate local procurement framework ensures that public infrastructure spending translates into domestic industrial activity and employment retention.
In early February, Industry and Commerce Minister Nqobizitha Mangaliso Ndlovu toured Pump and Steel Supplies, an engineering and mining products manufacturer operating in the Belmont, Donnington and Thorngrove industrial areas in Bulawayo.
The company boasts a manufacturing capacity exceeding 36 000 tonnes per annum.
Minister Ndlovu stated that the company reflects the importance of building and protecting domestic value chains to sustain industrial growth.
The ministry is currently advocating for the production and consumption of locally made products to stimulate the economy towards Vision 2030.
During the tour, Pump and Steel Supplies' business development and brand manager Ms Linda Chikerema underscored the employment dimension.
"Pump and Steel Supplies has the capacity, skills and infrastructure to manufacture locally today. What is required is a policy environment that rewards production, not imports," she said.
Ms Chikerema emphasised that every tonne produced locally represents a job retained, skills preserved and foreign currency saved.
"Imports directly suppress factory utilisation and employment growth . . . What is required is policy alignment, not a rescue package."
For years, Zimbabwe exported raw iron ore while importing finished steel products at a significant cost.
This imbalance drained foreign currency and weakened domestic industrial capacity.
The Local Content Strategy is reversing this trend through tariff adjustments, fiscal incentives and preferential procurement policies.
Industrialist Mr Kumbirai Moyo noted that the shift has restored confidence in industry.
"The Local Content Strategy has given industry the confidence to invest long-term. We are no longer building capacity for today only, but for regional demand tomorrow," he said.
As local capacity expands, including major investments such as the Dinson Iron and Steel Company (DISCO) plant in Manhize, which has an installed capacity of 600 000 tonnes in its first phase of production, Zimbabwe is increasingly able to meet domestic demand in mining, construction and infrastructure.
Mr Wilfred Motsi, project manager at DISCO, revealed that since becoming operational, the company has enabled the country to save approximately US$500 million annually on steel imports.
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He noted that, while Zimbabwe previously imported around 100 000 tonnes of rebar annually, those imports have now dropped to zero.
According to the Minerals Marketing Corporation of Zimbabwe, steel sales in the financial year ended December 31, 2025 reached US$92,1 million. The amount was realised from 146 314 tonnes of steel sold.
This represents a 450 percent increase in value compared to FY2024.
Economic analyst Ms Alice Chikonzi said the turnaround demonstrates how local content policies underpin structural transformation.
"Zimbabwe is laying the foundation to become a steel powerhouse for Africa," she remarked.
This progress has earned international praise.
According to The Compendium of Africa's Strategic Minerals 2026, published by the Africa Finance Corporation, Zimbabwe has moved faster than any other country in Southern Africa in leveraging its mineral endowment to drive beneficiation.
The report highlights that high-carbon ferrochrome production rose from less than 250 000 tonnes in 2014 to over 1,7 million tonnes in 2024.
