Zimbabwe has commissioned three refurbished locomotives and 100 high-sided wagons under a US$2.8 million public-private partnership between the National Railways of Zimbabwe (NRZ) and ferrochrome producer Zimasco, in a move officials say will help ease freight bottlenecks and reduce pressure on the country’s roads.
The equipment was commissioned by Transport and Infrastructural Development Minister F.T. Mhona, who described the partnership as an example of how private capital can help revive Zimbabwe’s ageing railway infrastructure.
“We gather to commission 100 high-sided wagons and three locomotives, refurbished through a USD 2.8 million strategic Public-Private Partnership,” Mhona said.
Under the arrangement, Zimasco financed the overhaul of idle rolling stock in exchange for freight charge offsets, securing dedicated rail capacity to move its chrome and ferrochrome products towards regional ports, including Beira and Maputo.
For NRZ, the deal expands available rolling stock without placing an immediate additional burden on the government treasury, according to Mhona.
The revival of rail capacity comes as Zimbabwe seeks to expand mineral production and improve the movement of exports to international markets.
“Mineral wealth in the ground means little if we cannot move it efficiently to the global market,” Mhona said, adding that the new wagons are expected to ease bottlenecks in the logistics chain and improve the competitiveness of Zimbabwean exports.
Bigger rail revival planned
The commissioning is part of a broader plan to recapitalise NRZ, with the government and Mutapa Investment Fund pursuing financing for new locomotives, wagons, railway infrastructure and signalling systems.
Mutapa Investment Fund CEO Dr J.P. Mangudya said the fund’s strategy was focused on improving NRZ’s commercial viability and operational performance following the railway operator’s transfer to the sovereign investment fund.
The fund said planned interventions include a US$6 million Ecobank facility to refurbish 520 wagons and acquire maintenance equipment, as well as a US$115 million Afreximbank facility for 10 new locomotives, 315 wagons and rehabilitation of key railway infrastructure.
Three additional locomotives are also being refurbished under a CBZ loan facility and are expected to enter service by December 31, 2026, while four Sheltam locomotives have been leased to address immediate traction constraints.
In the longer term, NRZ estimates that it will require about US$600 million to close infrastructure gaps, acquire new rolling stock and upgrade workshops. Discussions with China Railway Industry Group are underway, Mangudya said.
Regional ambitions
Officials also see rail rehabilitation as central to Zimbabwe’s ambitions to strengthen its position as a regional transport and logistics hub.
A US$10 million tripartite arrangement involving Zimbabwe, Mozambique and Botswana is supporting rehabilitation of the Chicualacuala-Plumtree and Machipanda-Harare railway lines, while Zimbabwe is also pursuing cooperation with South Africa on the North-South Corridor.
Mangudya said the rehabilitation of regional rail links would support trade integration across the Southern African Development Community.
He urged other companies handling bulk cargo to follow Zimasco’s example and participate in the rehabilitation of NRZ infrastructure and rolling stock.
The government has also called on mining companies, agricultural businesses and fuel importers to consider similar partnerships involving refurbishment, leasing or procurement of locomotives and wagons.
