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Leonard Ncube
GOVERNMENT has made an undertaking to release more than $7 million allocated to the National Railways of Zimbabwe in the 2013 national budget by next week. Speaking at the commissioning of a state-of-the-art flash butt welding machine acquired by the railway company, the Permanent Secretary in the Ministry of Finance, Mr Willard Manungo said he was informed by the NRZ general manager Retired Air Commodore Mike Karakadzai that of the $9 million allocated in the 2013 budget, the parastatal had only received slightly more than $1 million
“I think it is critical that we assure you of the fiscal support. I make a commitment that in the next week we will do justice and ensure the remaining money is released,” said Mr Manungo.
He said NRZ was critical in the revival of industry in the country hence the need for sound capital injection.
The welding machine was commissioned at the NRZ yard near Sizinda suburb.
Mr Manungo, who is also the chairman of the Infrastructural Development Bank of Zimbabwe (IDBZ), said it was an anomaly for the Government to allocate a few million dollars to the parastatal in 2013 national budget yet the parastatal was pivotal to the revival of all economic sectors.
“We really need to do much as Government in terms of supporting capital budget which recognises the critical institutions such as NRZ in the 2014 national budget. We need to restore the NRZ to its status of being the anchor of our industrial development,” said Mr Manungo.
He said discussions to ensure NRZ got adequate funding in the 2014 budget should start now.
“Without a functioning railway system it is difficult to improve any sector of the economy. The railway system is critical in supporting industry but the support we are giving NRZ is limited. With a budget of $4 billion, it is embarrassing to be talking about releasing only $1,3 million to NRZ. It is clear that NRZ is ready to play a part in re-industrialisation and it is important that we start re-strategising as a sector on how you can go back to be the centre of the economy,” he said.
Mr Manungo however challenged the NRZ to be innovative, saying the management should consider partnerships with other sectors.
Briefing Mr Manungo earlier, Rtd Air Commodore Karakadzai said NRZ was facing a myriad of challenges ranging from limited cashflow to stiff competition from road transport because clients were no longer stocking goods but moving them in small quantities by road.
He also said they were moving reduced volumes of freight while also losing a lot of money on duty.
In response, Mr Manungo said: “Duty remains an issue but as Government we will make sure we remove such impediments and also make sure that money you are owed by clients is paid.”
NRZ needs about $2 billion to re-capitalise and refurbish its wagons and locomotives.
In a speech read on his behalf by the Principal Director for Policy and Planning in the Ministry of Transport, Communications and Infrastructural Development, Mr Valentine Sinemani, the Permanent Secretary in the Ministry, Mr Munesu Munodawafa said the Government recognised the role played by NRZ in the recovery of the economy.
He said there was a need for transformation of operations and attitude to bring innovation in the parastatal.
“There is a need for transformation and change of attitude because there are a lot of idle assets in the workshop that need to be put to good use. Government will make sure its bulk cargo goes to NRZ so that it moves large volumes of freight and generate revenue,” he said.
The $1,3 million flash butt welding machine was acquired through the Public Sector Investment Programme (PSIP).
The NRZ recently acquired 12 000 tonnes of rail from China which would be welded using the new machine.
The ceremony was attended by the NRZ board members led by the chairman, Dr Kotsho Dube.
Online Reporter