Zimbabwe aims to be home to Africa’s largest steel plant, but disputes over the project persist even as it ramps up production.
In recent months, villagers have accused the Chinese steel mill’s subsidiary Dinson Iron and Steel Company, or DISCO, of taking their land without compensation, damaging the environment and failing to help them relocate.
There are also concerns that the project, along with the impact of the climate crisis, is affecting food security for villagers living in areas near the plant.
Chokutwa Chananda, 81, head of Mushenjere, a village in central Zimbabwe, told VOA that the villagers are asking all stakeholders for help. They are also asking the Chinese steel company to honor its promises of compensation and relocation.
“We are calling on all parties involved to step in, come together and support our cause,” Chananda said. “As the rightful owners of the land, we deserve to be treated fairly by DISCO. We demand development, not destruction.”
DISCO, which is a subsidiary of China’s Tsingshan Holding Group, touted as one of the world’s largest stainless steel producers, denies any wrongdoing.
In June, some local villagers staged a protest and tried to block DISCO trucks from entering the factory. Villagers accused the company of forcing residents off their farmland without compensation, resulting in food shortages and heavy dust pollution.
Chananda told VOA that while the company welcomes investment and business development, residents felt the company’s behavior had been disrespectful and insensitive.
The giant steel and mining company is erecting a wall around farmland and pastures in the area, further isolating families in Mushenjere village from their traditional livelihoods. Before 2021, when the steel mine came to Manhize, the people of the area relied mainly on subsistence farming for their livelihood.
Villagers said the plant has displaced more than 100 families, leaving them destitute and food insecure according to the villagers.
A September report released by the Center for Natural Resource Governance concluded that Chinese mining operations in Zimbabwe are not necessarily mutually beneficial.
“Evidence on the ground shows a growing rift between Chinese nationals and their workers in Zimbabwe and host communities. “Increasingly, ordinary Zimbabweans are accusing China of exhibiting colonial traits,” the report said.
Villages near the DISCO “plant” have been conspicuously excluded from engagement platforms by the Chinese company, the report said. The report adds that “this lack of engagement and meaningful consultation has led to feelings of disenfranchisement and marginalization among affected communities”.
Promises of economic benefits
The $1.5 billion plant began production in July and is expected to create 10,000 new jobs when it reaches the final stage of production. It is currently operating at 60% of its capacity and aims to be at 75% sometime early next year.
Expected to be an economic boon for Zimbabwe, the country hopes to reap financial benefits from the project when steel can be exported from the plant in the future.
The steel industry can contribute approximately $5 billion to the national economy, Winston Chitando, Zimbabwe’s Minister of Mines and Mining Development, said after touring the plant in June.
Wilfred Motsi, project director for Dinson Group, said the development marks a major milestone in Zimbabwe’s manufacturing industry.
“We are going back to our glory days when Zimbabwe was known as one of the industrial centers in southern Africa because of the opening of the steel industry,” Dinson Group project director Wilfred Motsi told China’s state news agency Xinhua in June. .
Food insecurity and the environment
Despite promises of infrastructure development, including roads and housing, residents said there has been a lack of progress. There are fears that the displacement is worsening an already fragile existence among the villagers. In August, the UN described food insecurity levels in Zimbabwe as “deteriorating rapidly after being hit by historic drought”.
Chenjerai Mushore, head of the three affected villages, echoed these concerns, highlighting ongoing environmental challenges and a slow compensation process.
Mushore claimed that the mine road reopening project has led to dust pollution. He stressed the urgent need to complete the road project to mitigate these risks.
Response to concerns
DISCO spokesman Joseph Shoko has denied any wrongdoing and told VOA that the company is committed to respecting the environment and is investing in sewage ponds and modern chimneys.
Since the villagers’ farmland is now within the perimeter of the steel plant, Shoko said DISCO has also supported 22 elderly people who are considered heads of households with US$200 a month for food since February until they move to a new place to live. . .
Shoko told VOA that there are also plans to support six more heads of household. Shoko added that new residents are offered employment opportunities instead of monetary assistance. In addition, the company is prioritizing these residents for employment opportunities as they await relocation, he said.
According to Mushore and Shoko, the mine is building new houses in a designated resettlement area to accommodate the displaced community.
Shoko further explained that compensation assessments involving government ministries are underway.
“The final measure of compensation will be determined by these ministries after a full evaluation”, concluded Shoko.
Chitando, Zimbabwe’s mining minister, did not respond to VOA’s request for comment.
The Zimbabwe-Sino relationship
Zimbabwe and China have maintained a strong alliance over the years. The relationship deepened significantly when Western countries imposed economic sanctions on Zimbabwe during Robert Mugabe’s presidency. As international funding and investment declined, China emerged as a major supporter.
Under President Emmerson Mnangagwa, Zimbabwe and China raised their partnership to a strategic level in 2018. This move facilitated increased Chinese investment, particularly in extractive industries. However, the DISCO steel plant has been criticized by environmental and human rights activists for its potential negative impact on the environment.
Zimbabwe’s environmental standards agency, the Environmental Management Authority, or EMA, is working with the Steel Mine to address issues raised by activists and villagers, said the agency’s manager of environmental education and publicity, Amkela Sidange. She said the EMA is closely monitoring the implementation of mitigation measures outlined in a previous environmental audit.
In response to VOA’s request for comment, EMA said there are currently no environmental violations at the Dinson-Manhize plant; however, “monitoring progress in implementing mitigation measures proposed for environmental compliance during a previous Environmental Audit by the Agency at the same plant” was conducted several months ago.
The EMA said the steel company has addressed issues identified in the audit, including upgrading the access road from Dinson to Mavise to a tarred road to further reduce dust.
The company is applying for the necessary environmental licenses, including effluent disposal and air emissions, the EMA said, adding that it will continue to monitor the plant “to ensure that they are completed within the established time frames and to ensure that the development of the project is done in a way that does not harm the environment or the health of the public”.