Rutendo Chirume
CHIVHU-The Centre for Research and Development (CRD) has raised concern over the relocation of families affected by the US$1.5 billion Dinson Iron and Steel project in Manhize, saying unresolved compensation and livelihood issues continue to threaten the rights and welfare of affected communities.
In a report released on July 29, CRD said the project had transformed Zimbabwe’s steel industry and boosted export earnings, but warned that its economic gains risk being undermined by disputes surrounding relocation and compensation.
“While the Manhize Iron and Steel Project has significantly contributed to Zimbabwe’s industrialisation and increased steel production, unresolved relocation, compensation and livelihood restoration issues continue to affect communities displaced by the project,” CRD said.
According to the report, at least 43 families have been affected by the development, with 21 households in Mushenjere Village yet to relocate after demanding improved compensation packages and better conditions at the proposed resettlement site.
CRD said some villagers have been exposed to dust and noise pollution from mining activities while awaiting relocation, adding that those earmarked for resettlement have raised concerns over inadequate housing, limited access to clean water, electricity, healthcare facilities and productive agricultural land.
The organisation said the affected families are demanding an increase in the monthly food allowance from US$200 to US$500, a review of relocation agreements, compensation for graves and livestock losses, secure land tenure, properly serviced farming land and structurally sound houses before relocation proceeds.
“Affected families are calling for fair compensation, meaningful consultation and sustainable livelihood restoration. Relocation should not proceed until outstanding concerns relating to housing quality, agricultural land, food security and compensation have been adequately addressed,” the report reads.
CRD further alleged that tensions escalated after Dinson reportedly rejected a contractor chosen by the affected families to rectify structural defects at the relocation site, a move residents viewed as undermining community participation in the process.
The organisation also criticised what it described as an uneven government response, arguing that while the State has provided policy support to the investment through its Special Economic Zone status, greater emphasis should be placed on safeguarding the rights and livelihoods of host communities.
Despite the concerns, the report acknowledged the project’s contribution to the economy, noting that Dinson recorded US$100 million in steel sales during the first half of 2025 under Phase One of the project, contributing to increased steel exports as Zimbabwe advances its Vision 2030 industrialisation agenda.
CRD urged authorities to ensure that the relocation process complies with national legislation and international best practice by guaranteeing adequate compensation, meaningful community engagement and long-term livelihood restoration for all affected families.
