How much do you know about scrap metal in Zimbabwe and the opportunities associated with it? One of our members who is an engineer by profession shared insights of opportunities in the area. The hope is that this may help inspire Zimbabweans to appreciate the value chain and tap into related opportunities.
Scrap metal is the backbone of Magaba and Mbare as a whole. The Chinese recycle scrap metal to make that steel for that double storey that you are staying, that double lock-up garage that you stay in, burglar bars, tank stand etc. I can write a whole book on what they make with the crap metal. Another key secret is that the steel is never enough. You have to do under hand dealings in order to get the steel.
My only problem is that no Zimbabwean national is making end products from recycling steel.
They all want to be retailers in Mbare, Willowvale, Msasa etc. The sad thing is that they are satisfied. Even the millionaires do not want to venture into this.
Here is the logic. They buy scrap metal at around US$200_$250 ( from Zimbabweans). They then melt the steel oxygenate it and make the above mentioned steel products. They then then sell to retailers (Zimbabweans) at around US$750. Who in turn sells to you from US$850 to about US$900 to Zimbabweans.
The retailers make a lot of money but why get a slice when you can have the whole cake? We have programmed ourselves to be consumers even on things that we can manufacture ourselves.
Vhuka.
