Nqobile Bhebhe
Zimpapers Business Hub
Government is considering using Gwayi-Shangani Dam as one of the anchor projects in a broader infrastructure bond aimed at mobilising private-sector capital for water, transport and other strategic infrastructure, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.
The proposed funding model could open a new avenue for financing the Gwayi-Shangani project while linking the dam to the wider economic transformation of Matabeleland through water security, irrigation development and industrialisation.
Apart from raising funds for Gwayi-Shangani as a standalone project, the Government is leaning towards a broader infrastructure funding vehicle that could bundle several nationally significant projects, poten tially improving the scale and attractiveness of the investment proposition to private capital.
Speaking on the sidelines of the Zimbabwe Economic Development Conference in Bulawayo on Friday, Prof Ncube said the ministry was assessing whether to structure the initiative around a specific project or a broader infrastructure fund.
“What we are saying is, is there a way to also crowd in the private sector, not infrastructure and development?
“It’s a good thought. We have been mulling over this as a ministry to see how we can crowd in the private sector.
“I think the debate is whether we want to make it a project, a bond, whether it is targeted at the specific project or rather it’s part of the broader infrastructure funding that we are proposing going forward, where this dam then will be taken care of as one of the pieces of infrastructure; that is what we have been debating.
“So far the debate is moving towards a broader infrastructure project because it is not just the dam; there are other dams as well, including the Kunzvi dam, which we are also pushing forward with.”
This comes after the Government channelled ZiG11,8 billion towards infrastructure development during the first half of the year, with investments targeting transport, energy, irrigation, schools, hospitals, water and sanitation, ICT and other productive sectors.
The proposed funding mechanism could be significant because Gwayi-Shangani is not simply a water infrastructure project but a potential platform for expanding productive economic activity.
Improved water availability could support irrigation, agro-processing and industrial activity while helping address the long-standing water constraints affecting Bulawayo and surrounding areas.
The dam is also a critical component of the broader National Matabeleland Zambezi Water Project, which has long been viewed as central to securing a sustainable water supply for Bulawayo and supporting economic development in the region.
The infrastructure bond concept could provide a mechanism through which investors participate in a wider portfolio of projects whose economic benefits extend beyond construction of individual assets.
Prof Ncube said the proposed portfolio could also include major road projects, further broadening the potential investment base.
“Also, we have the Victoria Falls-Bulawayo road; we also have parts of the Harare-Beitbridge road; then we have the Harare-Chirundu road, for example.
“So again, it looks like a broader infrastructure fund; a strong bond is what makes sense. We will then capture the needs for the Gwayi-Shangani Lake within that broader infrastructure fund.”
The inclusion of the Victoria Falls-Bulawayo road alongside Gwayi-Shangani could have particular significance for Matabeleland, linking water and productive infrastructure with connectivity to one of Zimbabwe’s major tourism centres.
For private investors, a broader infrastructure vehicle could potentially provide exposure to multiple projects rather than relying on the financial and commercial returns of a single asset.
The model would also allow the Government to consolidate infrastructure requirements into a pipeline capable of attracting institutional and other long-term capital, although the final structure and investment terms are still under consideration.
The proposed approach comes as the Government seeks greater private-sector participation in infrastructure development, amid competing demands on public finances and the need for substantial capital to close infrastructure gaps.
The central economic proposition is that investment in Gwayi-Shangani could extend beyond water supply to create the infrastructure base required to unlock new agricultural, manufacturing and other productive investments.
The infrastructure funding model under consideration could position Gwayi-Shangani as an anchor asset within a broader investment programme, linking water security to the region’s industrialisation ambitions.
Prof Ncube said the Ministry was still debating the precise structure of the proposed mechanism, but indicated that the broader infrastructure fund and bond approach was gaining ground.
The proposed financing model also reflects the growing capacity of local financial institutions to fund strategic national projects, following the recent US$125 million syndicated loan arranged by seven banks for Mutapa Gold Resources’ Shamva Hill Open-Pit Project.
