AllAfrica.com reported that Zimbabwe government has short listed 2 investors out of the 6, who were vying to acquire the embattled Zimbabwe Iron & Steel Company.

Among the 6 investors that were interested in taking over Zisco were Arcelor Mittal (South Africa), Murray and Roberts (South Africa), Steel Makers (Zimbabwe) Reclamation (South Africa) and Gateway (Zimbabwe) in association with an Indian firm.

Mr Joel Gabuza Parastatal and State Enterprise Minister said that the short listed investors were presently before an inter ministerial committee for further evaluation of their history, capacity and suitability.

He added that "This is a process. For instance if there were 10 bidders Government had to come up with say two from which the eventual winner will be recommended to the President and the Prime Minister."

Once approved the investors would be referred to the inter ministerial committee, which together with parent ministries would choose the final winner.

Mr Welshman Ncube industry and commerce minister of Zimbabwe recently said that the government would consider a sound debt management plan for Zisco as one of the major factors in arriving at the eventual winner.

It may be noted that Zisco is saddled with a USD 300 million debt overhang in addition to a myriad of other challenges. The company requires an effective revival plan to resume operations which were suspended a few years ago. The new investors, apart from clearing the company's huge debt, would have to pump in several millions into recapitalization of the firm.

Mr Alois Gowo CEO of Zisco said that the exercise, contracted to Shougang International of China, would chew up about USD 12 million.

(Sourced from www.allafrica.com)