It sits in an extremely iron-rich area and has relied on steel production as a source of revenue since it was founded in the last century.

The Zimbabwe Iron and Steel Company (Zisco), which is based in Redcliff, was the town's largest employer until government officials looted the state-owned iron and steel manufacturer, Ziscosteel, in a scandal that became known as the Ziscogate in the media.

During that time, the state owned 90% while shareholders owned 10% of the firm.

Now, the Essar Group has invested US$4-billion and has promised to immediately inject US$750-million to take up a 54% stake in the company, to be renamed New Zimbabwe Steel, while the government will control 36%.

The move has created more than 7000 jobs.

"Essar has promised to create about 3500 jobs and also retain 3500 of Zisco's previous staff," said the minister of industry and commerce, Welshman Ncube.

Other industries and businesses that have a direct or indirect link will also benefit from the deal.

Already there is renewed interest in the small town that had fallen off the national radar after 2008 when Ziscosteel folded operations.

Councillor Joseph Matewa said there were growing inquiries from people who want to set up shop in Redcliff and he projects a boom in activity.

"The steel company has brought back interest into the town. We are getting inquiries from people who want to invest in the town.

"There is likely to be a boom. This community has been suffering for the past years and revived hopes of re-employment and job creation as well as business opportunities are a reality," he said.

In its profile, Essar boasts of an active social responsibility programme.

Redcliff, like all other growth points in Zimbabwe, was developed on the strength of its natural resources that would keep the town alive.

Since it is rich in iron ore its survival depends on a vibrant iron and steel industry.

When Ziscosteel shut down, life became unbearable for residents as they failed to pay their bills and for services.

A few months ago, residents were up in arms against the amount they were paying for their water bills. Redcliff City Council buys water from Ziscosteel, which in turn buys it from Kwekwe City Council at 40c per cubic metre and sells it to residents at 60c.

"The only way to rescue this town is for the business world to come on board.

"As it is, Essar has led the way for others and life will improve in this town," said the mayor.

By Staff reporter and agencies