South Africa’s Steel Tariff Review: Protectionism, SADC Politics, and the Rise of Zimbabwe’s Manhize Steel – The Zimbabwe Mail

📅 Published: August 18, 2025

📰 Source: thezimbabwemail

Curated by AllZimNews.com

The review,as reported by Reuters, was initiated earlier this year by the South African International Trade Administration Commission (ITAC) under the South African government’s ministerial directive, signals more than just a protective reflex.

It represents South Africa’s willingness to recalibrate its trade policy in ways that may test the very foundations of the Southern African Development Community’s (SADC) Free Trade Area agreement—a regional economic framework long perceived as tilted in South Africa’s favour.

The Steel Market Context: From Global Dynamics to Manhize’s Disruption
The steel industry is one of the most globally interconnected sectors, its prices shaped by shifting demand in China, infrastructure booms in emerging economies, and fluctuations in raw material costs from iron ore to coking coal.

In recent years, global steel markets have also been reshaped by state-led industrial policies, climate-related production limits, and rising protectionism.

South Africa, historically the dominant steel producer in the SADC region, has benefited from this interconnectedness.

With legacy plants such as ArcelorMittal South Africa, Pretoria long enjoyed near-monopolistic access to regional markets, exporting both finished steel and semi-finished products to its neighbours.

Zimbabwe, whose own industrial base was eroded by decades of underinvestment and economic instability, had become a net importer of steel, often sourcing from South Africa to meet demand in construction, manufacturing, and mining.

Enter Dinson Iron and Steel Company—a $1. 5 billion investment by Chinese interests into Zimbabwe’s Manhizhe in Chivhu district.

Designed with modern blast furnaces and integrated production lines, DISCO is set to become Africa’s largest steel plant, with projected annual output exceeding one million tonnes.

Crucially, the plant’s cost base and geographic positioning allow it to compete directly in regional markets that were once South Africa’s uncontested domain.

A delegation from countries in the SADC Region who are attending the Industrialisation Week in Harare, has toured the Dinson Iron and Steel Company in Manhize.

Dinson is scheduled to produce 600 000 tonnes of steel in the first phase, which would rise to 1,2 million tonnes in the…pic. twitter. com/fOyolSKROt
— Ministry of Information, Publicity & Broadcasting (@InfoMinZW)August 2, 2024
A Brief Timeline of SADC Trade Relations and South African Dominance
1980– The Southern African Development Coordination Conference (SADCC) is formed, aiming to reduce dependence on apartheid-era South Africa and promote regional cooperation. 1992– SADCC evolves into the Southern African Development Community (SADC), formalising commitments to economic integration. 2000– SADC members agree to establish a Free Trade Area (FTA), setting out a phased plan to remove tariffs on 85% of intra-regional trade. 2008– The SADC FTA officially launches.