Staff Writer

Government has stepped up efforts to revive the Zimbabwe Iron and Steel Company (ZISCO) with at least four foreign investors said to be earmarked for its revival.

According to the Zimbabwe Chamber of Mines, of the interested parties are two Chinese companies, whilst one is from Germany and another from Australia.

“The potential investors have since carried out due diligence on the steel company and are keen to get the ball rolling. They are currently being examined by the board, but indications of a major deal coming up though still under wraps,” revealed the source.

ZISCO was said to be currently in the process of engaging transaction advisors made up of specialists in project and corporate finance, financial modelling and deal structuring in order to stitch this deal, which will have financial advisors responsible for overall project management.

 “Although numerous foreign investors have failed to revive the company, with Chinese property developer Guangzhou R&FA, backing out of the $1 billion deal last year, the newest development could see a make a smooth comeback for the former African largest steelworks,” he added.

Inclusion of Chinese steel giant Tisco was said to have also brought confidence among investors with more potential investors reported to be making enquires to come on board, ever since reports of Tisco being among the interested companies who have since carried out preliminary investigations on ZISCO.

Reopening of ZISCO could give a breather to Government, as it once a major foreign currency earner, which produced about one million tonnes of steel per year, and employed at least 5 000 workers before it folded.