ZIMBABWE is courting the African Development Bank (AfDB) to secure financing to revitalise its struggling railway sector, which is considered strategic for the region, businessdigest can report.
The southern African nation's strategic rail network, which connects to regional networks along the north-south corridor, faces significant challenges due to out-dated infrastructure. A well-developed rail network is crucial for fostering domestic, regional, and international trade growth, as it links major production centres and provides vital transportation services for businesses.
AfDB Zimbabwe head of mission, Moono Mupotola, told businessdigest on the side-lines of the 7th Sadc Industrialisation Week in Harare this week that Zimbabwe is a key interlocutor for the railway.
"In terms of infrastructure, right now, we have been invited by the government to come and look at the railway sector to actually do most of the technical studies that we have,” she said.
“These are technical studies to help Zimbabwe raise money for infrastructure development. A couple of years ago, in 2021, we did a feasibility study on railway connection between Zambia, Lion's Den and Kafuwe in Zambia.
“So, we want to see how we can upgrade those studies and see how we can help Zimbabwe through our other platform, the Africa Investment Forum, to actually raise money and have the private sector raise money through that,” Mupotola added.
In a bid to breathe new life into its aging railway network, the government is forging a strategic alliance with the China Railway Group Ltd.
This collaboration, valued at a staggering US$533 million, aims to leverage China's expertise and financial prowess to modernise the country's rail infrastructure from the ground up.
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The Mutapa Investment Fund is also facilitating a US$431 million loan facility from Afreximbank to support the National Railways of Zimbabwe’s infrastructure rehabilitation. Mupotola said the AfDB was also supporting the public sector through a skills development programme focused on energy and public finance management reforms.
“Last year, we also gave a grant of about US$4 million to look at reforms of State-owned enterprises in Zimbabwe. So, most of the grants are within US$3 million to US$5 million,” she said.
“As you know, we do not provide public loans to the Zimbabwean government because we are still owed about US$730 million. “So, our support has mainly been technical assistance and also in grant form.”
On the private sector side, Mupotola said: "We have about US$80 million a year that we provide to the private sector. So far, our portfolio is about US$40 million and we are hoping we have projects of about US$200 million in our pipeline.
“We are hoping that in 2025, we will be able to give resources and help with facilities to the private sector.”
