It is reported that India's conglomerate Essar plans to spend up to USD 4 billion in constructing a steel plant to process iron ore from Zimbabwe's Mwanesi resource within the next five years.

Mr Welshman Ncube industry and commerce minister of Zimbabwe said that this would be the largest single foreign investment into Zimbabwe's troubled economy.

Mr Ncube said that the plant would process 25 million tonnes of ore annually and create 500 jobs in a country with an unemployment rate of more than 85%. It is the latest drive by investors from emerging market giant India into Africa.

Rivals China and Brazil are also keen on investing in Africa's resource sector but western firms have been lukewarm to Zimbabwe in recent years because of the policies of the government of President Mr Robert Mugabe which include its current drive to have majority stakes of foreign mining houses turned over to local black investors.

The African unit of Essar Group in November agreed to buy 54% in the Zimbabwe Iron & Steel Company, with the government keeping 36% and 10% owned by minority investors.

Meanwhile, Reuters quoted Mr Robert Mugabe President of Zimbabwe said that refurbished ZISCO plant will produce 2.5 million tonnes of steel a year within 27 months.

(Sourced from www.reuters.com)