A new dedicated railway line will be built to connect Mvuma’s US$ 1bn stainless steel production to a new port in Mozambique, allowing exports to be moved on time and in quantity. The enterprise is looking for investors to help with this and restoring and improving the train networks.
The planned investment will also increase bulk railway traffic between Mozambique and Zimbabwe, creating additional chances in mining and manufacturing and assisting the tourism industry, and unlocking countless downstream job prospects. Mike Madiro, Deputy Minister of Transport and Infrastructural Development, revealed details of the prospective investment in Dubai on Sunday when a Zimbabwean team drawn from the tourism and transport sectors conducted a two-day interaction with potential investors and the Diaspora community.
After completing preparatory groundwork and the connection of power to the project site in Manhize, top Chinese steelmaker Tsingshan Holding Group is developing the massive iron ore and carbon steel factory.
Benefits of the Mvuma Railway Line Project
The Mvuma railway line project is intended to result in Zimbabwe having the largest steel mill in Southern Africa, if not the entire continent, as well as the development of up to 6000 employment.
According to Deputy Minister Madiro, this is a multimillion-dollar investment in stainless steel, and because of the welcoming business climate provided by President Mnangagwa’s vision, Tsingshan has decided to invest heavily in Zimbabwe. They are now constructing a specialized railway route to Mozambique’s ports on the Indian Ocean. They will build a new railway project to Mozambique, where they will also build a new port.
Tsingshan has moved onto the Mvuma site with much of the preparatory work completed, with administration offices approaching completion and access roads being developed to increase connection. Despite the fact that the building of the furnaces is still in its early stages, the investor has already established a cement mixing factory. Deputy Minister Madiro stated that the projected Mvuma railway line will open up new economic opportunities downstream and asked Middle Eastern investors attending the tourism and infrastructure conference to join the project.
The Mvuma steel project would see Zimbabwe become an important steel supplier to the export market while also serving local demands reducing imports. Deputy Minister Madiro stated that, in addition to the planned railway project, the government is looking for investment partnerships to rehabilitate its whole railway system, including new mass transit projects that would help modernize the country’s economy.