Steelmakers Zimbabwe, one of the few remaining steel-producing companies in the country, has said it is losing its export market due to the strengthening United States dollar.
BY BLESSED MHLANGA
Speaking during a tour of the Redcliff Steelmakers plant by Kenyan ambassador Lucy Chilemo, the company’s general manager Alexander Johnson said exports of steel products had declined owing to the strong dollar.
“The most prominent of them is that Zimbabwe has no currency of its own, while this business and industry at large is in a very compromising level of playing field where competitiveness is at stake with our neighbours,” he said.
Steelmakers used to export 40% of its products, but steel prices mainly in South Africa and Zambia have forced them to cut production as the market looks at cheaper products.
Despite the economic hardships which has seen Steelmakers cut down production, Johnson said the company would not shut its doors, but would continue to find ways to survive and produce quality steel for the available local market.
Chilemo, who is on a countrywide tour visiting businesses, said she was interested in ensuring that trade between Zimbabwe and Kenya increased from mere exchange of goods to capital investment.
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“There are investors from Kenya who want to invest in Zimbabwe. So my task is getting the right information on potential areas of investment which will be made available to investors in my country by my government. Then the investors would come through my government to Zimbabwe,”she said.
Chilemo also called on local companies to empower youths to curb unemployment.
She said youths should be assisted to get into business as they were the future.
“If we have, for example, youths from Kwekwe selling mealie meal to Steelmakers Limited, that is creating employment in the high-density suburbs which is a great step towards having youth entrepreneurs,” she said.
