Online Reporter
Nduduzo Tshuma in BEIJING, China
ZIMBABWE is expected to conclude a US$600 million agreement with China Railway International Group (CRIG) this year to rehabilitate its railway system, a development set to position the country as the region’s logistics hub.
Due to Zimbabwe’s strategic location, the modernised railway system will connect seamlessly with neighbouring countries, boosting trade competitiveness across Southern Africa, while reducing the cost of doing business domestically.
The development will also help to minimise damage to the country’s roads, which have been carrying much of the mining sector’s ore.
Yesterday, President Mnangagwa met with the top management of CRIG at his hotel here to discuss the modernisation of the National Railways of Zimbabwe (NRZ) railway network, which forms a key component of the transport infrastructure.
CRIG, a subsidiary of the Fortune 500 company China Railway Group Limited (CREC) and listed on two stock exchanges, is responsible for executing overseas projects.
The global giant in construction and engineering, with a legacy spanning more than 130 years, has projects in more than 100 countries.
CREC chairman Mr Chen Wenjian, vice president Mr Ren Honperg and the director of the international business department, Mr Zhang Yongkang, met President Mnangagwa to fine tune details of the deal.
Also in attendance were CRIG chairman Mr Bi Yanchun, vice president Mr Yu Jiefang and its country representative Mr Zhang Guangyi.
During his State visit to China last year, where he also attended the Forum on China-Africa Cooperation (FOCAC), President Mnangagwa and President Xi Jinping signed 17 bilateral agreements, including an MoU to enhance the implementation of high-impact projects.
Among the 17 memorandums inked at FOCAC was one on the recapitalisation and upgrading of NRZ, as well as building a railway line between Harare and Chitungwiza.
Addressing the media after yesterday’s meeting, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube described the engagement as constructive, noting that the company is keen to work with Zimbabwe.
He said the project has been pegged at US$600 million, underscoring its magnitude and intended benefits.
“We had constructive discussions. This is the top management in China Rail, it’s a Fortune 500 company listed on two stock exchanges here in China. It’s a top-drawer company and we met top management and they are very serious about Zimbabwe,” said Prof Ncube.
“They have been home, not once; they also have an office now in Harare, on the ground, so they know the Zimbabwe railway network backwards.”
The President also met the company’s top leadership during his last visit to China.
Prof Ncube said an agreement should be sealed within the next four months to make way for work on the project.
“So far, we have signed a memorandum of agreement, we have done a full feasibility study of the NRZ infrastructure and they know what needs to be done,” he said.
“What we have been working out are details on how to put the financing structure together so that we can move on to a potential contract to move in and rehabilitate the NRZ infrastructure. We hope that by the end of the year, we will have concluded the final agreement on what needs to be done, so in the next four months or so, we hope to conclude that, including the financing model.”
Prof Ncube noted that the rehabilitation of the railway system will see, among other developments, the country complying with new rail gauge standards to ensure seamless connections across the country and in the region.
“Zimbabwe is central, as you know, our railway gauge must be synchronised and aligned to our neighbours to ensure that we truly become a logistics hub for railway infrastructure in the region. In fact, that is an opportunity for Zimbabwe to become a logistics hub, so we need this railway upgrade of the NRZ for that vision to be realised,” he said.
Prof Ncube said the refurbishment of the railway system will also lower the cost of doing business in Zimbabwe.
“I look forward to this being accomplished, as you know, once you develop the NRZ infrastructure, that will lower the cost of logistics, the cost of doing business in Zimbabwe. It will save our roads. Currently, the mining sector is moving its ore on the roads, damaging the roads, but when the railway line is developed, everything will change and Zimbabwe can lower the cost of doing business and will truly become a logistics hub in the region.”
Meanwhile, President Mnangagwa held a separate meeting with senior executives from global telecommunications giant Huawei, focusing on Zimbabwe’s digital future, including expanding investment in ICT talent, strengthening infrastructure and introducing advanced technologies in the country.
During his last visit, the President also toured the company in China’s technology hub of Shenzhen.
Huawei senior vice president and president of Enterprise Sales, Mr Leo Chen, led the Huawei delegation in yesterday’s meeting.
He was accompanied by the vice president for Southern Africa and chief executive of Huawei’s Southern Africa Multi-country Mr Robin Yu, managing director of Huawei Technologies Zimbabwe Mr Yang Shengwan and board manager of Southern Africa Multi-country Mr Jason Xu, among other officials.
In an interview after the meeting, Mr Yang reaffirmed the company’s commitment to Zimbabwe, saying they have been in the country for 26 years and are determined to continue playing a central role in the digital agenda.
“We have been running ICT talent programmes for years and we will continue expanding investment in ICT talent. We have been in Zimbabwe for the past 26 years and no matter what happens, we will always be with Zimbabwe,” he said, revealing plans to introduce new artificial intelligence technologies in the country.
The two meetings, part of a series of engagements by President Mnangagwa to strengthen relations with China and advance economic diplomacy, were also attended by Foreign Affairs and International Trade Minister Professor Amon Murwira.
Attorney General Mrs Virginia Mabiza, Chief Secretary to the President and Cabinet Dr Martin Rushwaya and Deputy Chief Secretary to the President and Cabinet in charge of Presidential Communications Mr George Charamba, among other senior officials, also attended the meetings.
who built the NRZ Infrastructure ? was it foreigners? No it was local technology , guys who only went as far as Form 2 high school, now we have to bring foreign companies to do what our children are supposed to do , having graduated at our colleges/Universities.Who was /is more Patriotic , those who chose local talent or those who choose foreign talent ?
just like what happened when procuring buses for ZUPCO from Belarus , foreign talent was promoted at the expense of local talent , Belarus youths got jobs to build the buses , but then , where are those same buses today ?? all scrap heap, and where are the praise-singers who always sing praises when government chooses to source outside instead of local?