• Manhize plans to raise annual steel capacity from 600,000 tonnes to about 1.8 million
• Rail infrastructure is becoming central to moving higher steel and raw material volumes
• Regional tariffs could constrain the export market required to absorb additional production

Harare — Dinson Iron and Steel Company the Zimbabwean subsidiary of Chinese steel and nickel group Tsingshan Holding Groupplans to increase annual steel capacity at its Manhize plant from 600,000 tonnes to about 1.8 million tonnes, placing Zimbabwe's rail network and access to regional markets at the centre of the company's next expansion phase substantially enlarging the volume of steel that Manhize ultimately needs to move into domestic and export markets.

Dinson is discussing a possible joint venture with the Mutapa Investment Fund as it considers the logistics required to support higher production. The National Railways of Zimbabwe sits within Mutapa's portfolio, giving the discussions a direct connection to the country's bulk freight system. Chief executive Benson Xu told Parliament's Portfolio Committee on Mines that Zimbabwe will require better rail infrastructure to realise the country's steel potential.

The rail requirement follows directly from the scale of the proposed expansion. Steel production requires large movements of iron ore, coal and other inputs before finished products leave the plant. Raising annual capacity by 1.2 million tonnes increases both inbound and outbound freight requirements. Rail economics therefore become part of Manhize's production economics because transport costs influence how far the plant can competitively sell its output.

Dinson already depends materially on markets beyond Zimbabwe. Around 60% of its output is exported to regional and international markets, giving the company an established external customer base for its steel. Expansion to 1.8 million tonnes would deepen that exposure because Zimbabwe's domestic market would have to absorb significantly larger volumes for the company to reduce reliance on exports.

Regional market access is already carrying additional costs. Dinson told Parliament that Zimbabwean steel faces tariffs in some neighbouring markets, including a 30% tariff in Zambia. South Africa has also become an important part of the regional competitive discussion as its domestic steel industry responds to additional supply entering the market. Xu said Dinson does not view South Africa as competition, while identifying the possibility of increased surtaxes as a concern.

The combination of higher production and trade barriers creates a clear commercial requirement. Manhize has to maintain a production and freight cost that leaves its steel competitive after transport and tariffs. Expansion increases the importance of that calculation because every additional tonne requires a market capable of absorbing it at an economic delivered price.

Domestic industrial demand consequently becomes important to the next phase. Greater use of locally produced steel in construction, mining, engineering and manufacturing would retain a larger share of Manhize's production within Zimbabwe and reduce the volume that has to cross tariff protected regional markets. Dinson is already broadening its product range as the Manhize complex develops, creating the possibility of supplying a wider group of domestic industrial users.

The company is also extending the industrial activities around the steelworks. Dinson plans to process metallurgical coal for furnace use and expects a cement plant at Manhize to begin production during the fourth quarter. These operations deepen the industrial concentration around the site and increase the requirement for reliable bulk transport connecting raw materials, production facilities and customers.

The expansion also exposes operating issues outside the factory. Dinson currently operates under a nine year land lease and is seeking an extension. The company told legislators that it pays fees to multiple government agencies in relation to the same lease and wants steel removed from the mineral classification because the current treatment creates delays in sales. These administrative costs enter the economics of an industrial operation expected to compete across regional markets.

Manhize has already changed Zimbabwe's position in the regional steel market. Zimbabwe generated about US$137 million from steel exports during the first half of 2026, exceeding the US$92.1 million recorded for the whole of 2025. Manhize has become the main production base behind that shift, with its output supplying both domestic and external markets.

Tripling capacity would move the steel industry into a larger commercial test. The additional 1.2 million tonnes cannot create economic value through installed capacity alone. Freight capacity has to expand alongside production. Domestic industries need to absorb greater volumes. Regional markets have to remain commercially accessible after tariffs and transport costs. Administrative requirements need to allow finished steel to reach customers without unnecessary delays.

The proposed rail partnership therefore deserves to be measured against the production expansion it is intended to support. Any capital committed through Mutapa should translate into higher freight capacity, lower unit transport costs and dependable movement of steel and industrial inputs. The economics become stronger where the same infrastructure also carries mining, agricultural and other bulk freight, increasing utilisation beyond Manhize.

Dinson's proposed expansion moves Zimbabwe's steel revival beyond the restoration of primary production. A plant capable of 1.8 million tonnes a year requires an industrial system capable of carrying that scale. Rail performance, domestic steel consumption and regional market access will determine how much of the additional 1.2 million tonnes becomes sustainable production and export earnings. Those are now the operating tests for the next phase of Manhize.

 Equity Axis News