The National Railway of Zimbabwe (NRZ) has revealed that all processes regarding securing a US$115 million facility from the African Export-Import Bank (Afreximbank) have been completed, and the Zimbabwean government is preparing the necessary guarantee to allow the bank to release the funds. This announcement was made by the NRZ Spokesperson, Andrew Kunambura, in an interview.
Earlier local reports had suggested that a Special Purpose Vehicle would be established to ring-fence the loan so that the revenue could be used to service the loan. However, Kunambura clarified the matter, stating that there is no Special Purpose Vehicle involved. Instead, the money will be paid directly to the supplier of rolling stock, which is RITES Limited of India, after which they will start producing the locomotives and wagons. RITES is an Indian public sector undertaking and engineering consultancy corporation.
Explaining the importance of railways to the Zimbabwean economy, Kunambura emphasised that rail is the most convenient means of transporting goods in bulk, such as fuel, gas, coal, clinker, chrome, and grain.
Kunambura noted that vandalism poses a significant problem to NRZ, with derailments occurring due to the vandalism of pins and spring fasteners. He further added that some individuals dig and harvest ballast, leaving the rail weak and prone to collapse. However, he expressed satisfaction that the judiciary has taken action by imposing stiffer and more deterrent penalties on offenders.
NRZ has stated that its recapitalisation project is aimed at rehabilitating and renewing critical rail infrastructure, including plant, equipment, rolling stock, track, signalling, telecommunications, and IT systems. This effort is expected to revitalise the railway sector, leading to improved logistics efficiency across various industries and reducing pressure on road networks.
In its 2023-24 annual report, RITES stated that governments globally have realised the importance of infrastructure development and its multiplier effect on the economy and are prioritising infrastructure capital expenditure. It noted that African nations are also willing to invest in transport infrastructure to boost regional integration and economic development. RITES highlighted that the African Union’s Agenda 2063 will guide infrastructure projects aimed at enhancing connectivity across the continent.
During the 2023-24 period, RITES secured an order worth US$35 million from Mozambique for the supply of 10 Cape gauge locomotives. The company also secured an extension of highway work in Botswana through its wholly-owned subsidiary. Additionally, RITES supplied 21 coaches to Mozambique, fulfilling its commitment to supply 100 coaches, including five DEMU trainsets. The company also completed multiple consultancy assignments abroad, including construction supervision of the Metro Express in Mauritius.
Written for Railway Africa Magazine by: Chamwe Kaira
