Zimbabwe issued new takeover bids for state-owned steel maker following a rejection of initial offers. Zisco, once a major foreign currency earner with the capacity to produce 1 million tons of steel a year, is the first state-owned enterprise to be disposed of in a bid to revive its operations.

The government seeks to attract foreign investors in a bid to raise at least $10-million to fix the economy.

A statement from the minister of industry and commerce Welshman Ncube did not indicate whether the government would allow ArcelorMittal South Africa and India’s Jindal Steel and Power whose bids it rejected, would be allowed to submit again in the process set to take place over three months.

Ncube said the bids were rejected because Zimbabwe preferred medium-sized investors to take over the company.

The government has said Zisco's privatisation would not be affected by a controversial law, which compels foreign investors to sell 51% stakes to local black people.

Source: Reuters