Online Reporter
Judith Phiri, [email protected]
THE National Railways of Zimbabwe (NRZ) has secured a CBZ loan facility of US$15 million with US$3 million approved so far for the refurbishment of three locomotives.
A locomotive is a self-propelled railway vehicle, commonly known as an engine, designed to pull or push trains along tracks. It provides the necessary motive power (steam, diesel, or electric) for transport.
In a brief overview, mandate and performance update to the Public Accounts Committee in Bulawayo on Thursday, NRZ deputy chief executive officer, Mrs Ainah Dube-Kaguru said from the US$3 million approved loan, three locomotives were being refurbished in South Africa.
“We unlocked a CBZ loan facility (US$15 million) and so far a US$3 million was approved for the refurbishment of three locomotives in South Africa by YNF Engineering with release of the first locomotive planned for June 2026,” she said.
In another success story, Mrs Dube-Kaguru said NRZ has partnered with Zimasco, producer of high carbon ferrochrome under a US$2,6 million deal for the repair of 100 wagons and three locomotives.
Other partners are Strauss (US$128 000 deal) for the repair of 100 fuel tanks, ARC (US$124 000 deal) for repair 20 fuel tanks and leasing locomotives from Sheltam with the assistance of Zimasco, Silvergill and PPC.
Mrs Dube-Kaguru said track rehabilitation will be undertaken through a tripartite US$19 million support under the ongoing import/export route upgrades (Machipanda to Harare and Chicualacual-Dabuka-Plumtree) in partnership with CFM Mozambique and Botswana Railways.
“CFM will source the materials required and the cost shared 50 percent each with BR, while NRZ provides ballast and labour. NRZ will repay the amount to CFM and BR through set-off against account current with CFM & BR separately,” said Mrs Dube-Kaguru.
She said NRZ was setting up a US$600 000 ballast plant in Shangani, strengthening infrastructure and self-sufficiency.
Mrs Dube-Kaguru said there was also development of intermodal hubs, which were loading/offloading hubs established in Gweru, Lalapanzi, Bulawayo and Hwange in partnership with Silvergill and ArcelorMittal South Africa (AMSA) respectively.
In the long-term, NRZ is pursuing the US$115 million Afreximbank loan facility with the support of the Mutapa Investment Fund (MIF) for the procurement of 10 locomotives, 315 wagons and tracks, signalling rehabilitation.
“Due diligence is ongoing, and we are hoping for financial closure, expected this year in six to eight months,” she said.
Mrs Dube-Kaguru said there have also been talks for the US$600 million facility with China Railway International Group (CRIG), with roundtable talks still ongoing.
She said the facility was being structured by the Governments of Zimbabwe and China backed by mineral resources, while parties were engaging on the bill of quantities for track rehabilitation.
“We also have partnerships with customers in the provision of capacity (locomotives and wagons) for movement of their cargo that is Paper Hole Investments (PHI) Logistics and Africa Rail Company (ARC),” said Mrs Dube-Kaguru.
She said there was also a US$6 million EcoBank loan being facilitated by MIF and has been approved for the refurbishment of 360 local and 120 export wagons, repair of plant and equipment, maintenance of locomotives and wagons, and some ICT systems.
Mrs Dube-Kaguru said NRZ has had engagements with Russia on track infrastructure and rolling stock refurbishments and renewal.
NRZ is one of the State-owned enterprises under the Mutapa Investment Fund portfolio, which had been relegated to the ‘corporate graveyards’ and is undergoing transformation for its revival.
Mutapa is the country’s sovereign wealth fund, established by an Act of Parliament. It is a strategic investment arm of the Government, which was capitalised with shares in selected State-owned enterprises and investments to transform, revive and strengthen the performance of these entities.
The fund manages a broad portfolio of companies from different sectors of the economy, divided into clusters including mineral resources, energy and trading, information communication technology, transport and logistics, agriculture and industries, financial services, as well as real estate.
