Online Reporter
Oliver Kazunga-Senior Reporter
GOVERNMENT is establishing an Infrastructure Development Fund to unlock US$400 million for critical road projects, easing pressure on the fiscus, while accelerating Zimbabwe’s modernisation and economic transformation agenda.
Infrastructure development has taken centre stage under President Mnangagwa’s Government, with construction gathering momentum across the country.
The financing is expected to accelerate the completion of major highways, improve regional trade corridors and reduce pressure on Treasury resources.
The financing initiative, which was announced by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, while presenting the 2026 Mid-Term Budget Review Statement in Harare last week, marks a major shift towards leveraging private and institutional capital to fund strategic infrastructure.
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.
Prof Ncube said the Government was adopting innovative financing mechanisms to sustain the country’s infrastructure development momentum without placing excessive strain on public finances.
“Going forward, in order to ease pressure on public finances, Government is working on establishing the Infrastructure Development Fund which will leverage additional resources from local, regional and international institutions, against identified revenue streams, towards infrastructure rehabilitation and development targeting energy, irrigation, schools, hospitals, rail and roads sectors,” he said.
The latest 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.
The historic transaction represents a major vote of confidence in the country’s economic transformation agenda as local financial institutions demonstrated their growing capacity to finance large-scale investments that traditionally-depended on offshore capital.
The Treasury head said the Government had already begun mobilising resources under the new financing framework.
“As part of this initiative, an arrangement has been made with local financial institutions to mobilise a US$400 million loan towards completion of the remaining 33 kilometres on the Harare-Beitbridge Road, rehabilitation of the Harare-Chirundu Road and Bulawayo-Victoria Falls Road, among other high priority road projects.
“Already, US$100 million has been secured and is awaiting fulfilment of conditions precedent. The repayment of loans will be ring-fenced from collections from ZINARA (Zimbabwe National Road Administration),” said Prof Ncube.
He said transport remained one of the country’s key economic pillars because of its role in facilitating domestic and regional trade, attracting investment, creating employment and improving connectivity.
The Construction Industry Federation of Zimbabwe (CIFOZ) chief executive Martin Chingaira has urged authorities to continue investing in infrastructure development projects such as dams, roads, housing, energy and public amenities like schools, hospitals and clinics to foster sustained economic activity in line with Vision 2030.
“The Government should continue to show commitment in infrastructure development to achieve sustained economic growth targets as the country seeks to achieve an upper-middle-income society by 2030.
“Most importantly, authorities should ensure timely distribution of funding to contractors to ensure infrastructure development programmes are completed as scheduled,” he said.
In the first half of the year, the Government spent ZiG3,9 billion on the transport sector, mainly through the Road Development Programme, resulting in notable progress on several strategic projects.
Among the major achievements was the completion and commissioning of the Manyame River Bridge and Mucheke (Chevron) River Bridge in April this year, while the remaining section of the Harare-Masvingo-Beitbridge Highway also moved closer to completion.
Significant progress was also recorded on the rehabilitation and widening of the Bulawayo-Victoria Falls Road, with 57,2 kilometres of the 440,4-kilometre project opened to traffic.
The Harare-Kanyemba Road project also advanced, with the dualised Harare-Mazowe section now complete and open to motorists.
Government also accelerated work on the Mabvuku and Msasa interchanges to ease congestion along the Harare-Mutare Highway, with the Mabvuku Interchange now 47,6 percent complete.
Construction has also begun on the Christmas Pass Bypass in Manicaland, a strategic project expected to re-route heavy commercial traffic away from the hazardous mountain pass, decongest Mutare’s Central Business District and improve cargo movement along the Beira Corridor.
In addition, the Emergency Road Rehabilitation Programme continued supporting road authorities across the country, resulting in hundreds of kilometres of road rehabilitation, resurfacing, resealing, grading and drainage works.
And with the Infrastructure Development Fund expected to unlock additional domestic, regional and international financing, the Government is positioning infrastructure investment as a key driver of economic growth, industrialisation and the attainment of Vision 2030.
