Government is this week expected to gazette the Ziscosteel Debt Assumption Bill to facilitate the takeover of $380 million owed to creditors by the steel company and pave way for resuscitation of the now defunct enterprise, Finance and Economic Planning Minister Patrick Chinamasa has said.
Zisco’s debt stood at $380 million in July 2017 when Cabinet approved the assumption of over $1 billion worth of debts that were accumulated by critical state enterprises.
“I think there is now light at the end of the tunnel and it’s not of an oncoming train. We have structured it, in fact I think on Friday I will be gazetting the Ziscosteel Debt Assumption Bill to make this animal more attractive to the suitor (R & F company) because we agreed that we need new investment,” Minister Chinamasa said at a breakfast meeting held yesterday in the capital.
He said findings point to 80 percent of Ziscosteel being obsolete. “I am informed that only 10 to 20 percent of Zisco is left, the rest is obsolete. We need a new investor to come in with the resources to set up almost a new structure.
“We have moved out of the old structure and I am hopeful that the company, which was awarded this should be on stream I am sure by end of March,” Minister Chinamasa said. As far as I am concerned I think this is on course and we are fulfilling our side of the bargain and have been assured that a Chinese investor is fulfilling his side of the bargain,” Minister Chinamasa added. HERALD