The Chirundu Border Post Upgrade and Modernisation Project has reached financial close, marking a major step towards the redevelopment of one of Zimbabwe’s key gateways to the region.
Standard Bank of South Africa and Stanbic Bank Zimbabwe are the lead arrangers and lenders for the project, which is being implemented through a public-private partnership (PPP) between the Zimbabwean government and the Chirundu Border Consortium (CBC).
The financing will support the upgrade, modernisation and operation of the Zimbabwean side of the Chirundu One-Stop Border Post.
Transport and Infrastructural Development Minister Felix Mhona said reaching financial close demonstrated the government’s commitment to delivering major infrastructure projects through partnerships with the private sector.
“The modernisation of Chirundu Border Post will improve trade facilitation, strengthen regional connectivity and enhance the efficiency of the North-South Corridor,” Mr Mhona said.
“We now look forward to the commencement of construction and the successful delivery of this important national project.”
The Chirundu border crossing connects Zimbabwe and Zambia and forms part of the North-South Corridor, a major regional trade route linking several countries in southern and central Africa.
The planned modernisation is expected to replace ageing infrastructure, introduce new operational systems and improve the movement of passengers and freight.
Stanbic Bank Zimbabwe chief executive Solomon Nyanhongo said the financial close highlighted the potential of PPPs to attract private investment into strategic infrastructure.
“Stanbic Bank Zimbabwe welcomes the successful achievement of Financial Close for the Chirundu Border Post Upgrade and Modernisation Project, a significant milestone in Zimbabwe’s infrastructure development journey,” he said.
Mr Nyanhongo said the project would improve efficiency at the border, facilitate cross-border trade and movement, and strengthen Zimbabwe’s role as a gateway to regional markets.
He said Stanbic Bank and its parent group, Standard Bank, remained committed to financing infrastructure and energy projects across Africa.
“Africa is our home, and we remain committed to driving the continent’s growth and development,” Mr Nyanhongo said.
He cited the bank’s involvement in energy projects and the rehabilitation of the Beitbridge Border Post as examples of its infrastructure financing activities in Zimbabwe.
Chirundu Border Consortium chairman and SAFAGA International chairman Glynn Cohen said financial close followed extensive cooperation between the government, CBC, SAFAGA International and its equity, financing and technical partners.
“SAFAGA is proud to have founded and sponsored this Project, and we look forward to delivering a modern and efficient border post that will serve Zimbabwe and the wider region for generations,” Mr Cohen said.
Strategic Partners Group founder and group chief executive Mzolisi Diliza described the financial close as a significant transaction for the company.
He said the project was in line with the group’s strategy of investing in infrastructure across Southern Africa and supporting regional trade and economic growth.
Standard Bank of South Africa executive for Energy and Infrastructure Finance, George Kotsovos said the bank’s participation as lead debt arranger and senior lender reflected its confidence in the project’s contractual framework and projected cash flows.
“We regard the project as a critical driver for regional integration and trade facilitation across the corridor,” Kotsovos said.
Head of Investment Banking and Core Markets Chungu Kaunda said the project was expected to improve cross-border movement and strengthen connectivity along the North-South Corridor.
The project is expected to improve the efficiency and security of the movement of people and goods through Chirundu, potentially reducing delays that affect regional trade and transit.
Stanbic Bank Zimbabwe was recently named Best Investment Bank Zimbabwe by Global Banking and Finance Review.
The bank has also been involved in capital-raising initiatives and strategic transactions for corporates and public institutions.
