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 central logistics hub.
Because of Zimbabwe’s strategic location, the modernised railway system will connect seamlessly with neighbouring countries in the region, boosting trade competitiveness across Southern Africa while reducing the cost of doing business domestically.
The development will also help minimise damage to the country’s roads, which have been carrying much of the mining sector’s ore.
President Mnangagwa met with 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 in two stock exchanges, is responsible for executing overseas projects.
A global giant in construction and engineering with a legacy spanning more than 130 years, the company has projects in more than 100 countries.
Among the company leadership was Crec chairman Mr Chen Wenjian, its vice president Mr Ren Honperg and the director of international business department, Mr Zhang Yongkang.
Also in attendance was 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 Co-operation (Focac), President Mnangagwa and President Xi Jinping signed 17 bilateral agreements including the 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 meeting as constructive, saying the company is keen to work with the country.
He said the project has been pegged at US$600 million, befitting the magnitude of the project and its intended benefits.
“We had constructive discussions. This is the top management in the 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 backwards.”
President Mnangagwa also met the company’s top leadership in his last visit here.
Prof Ncube said the agreement should be sealed within the next four months to make way for works on the project.
“So far, we have signed a memorandum of agreement, we have done a full feasibility of the NRZ infrastructure, they know what needs to be done.
“What we have been working out are details on how to put the financing structure together so that we can move on a potential contract to move in and rehabilitate the NRZ infrastructure,” said Prof Ncube.
“We hope that by the end of the year, we would 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 said the rehabilitation of the railway system will see, among other developments, the country complying with new rail gauge standards to ensure seamless connection across the country and in the region.
“Zimbabwe is central, as you know, it is very important that our railway gauge is synchronised and align to our neighbours to ensure that we truly become a logistics hub for railway infrastructure in the region,” he said.
“In fact, that is an opportunity for Zimbabwe to become a logistic hub, so we need this railways upgrade of the NRZ for that vision to be realised,” said Prof Ncube.
“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 Zimbabwe’s digital future including expanding investment in ICT talent, strengthening infrastructure and introducing advanced technologies in the country.
In his last visit, the President 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 vice president for Southern Africa and chief executive of Huawei’s Southern Africa multi-country Mr Robin Yu, managing director of Huwaei 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 the company has been present in the country for 26 years and was 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 on ICT talents.
We have been in Zimbabwe for the past 26 years and no matter what happens, we will always be with Zimbabwe,” he said, adding that plans of introducing new artificial intelligence technologies in the country were underway.
The two meetings, part of a series of engagements by President Mnangagwa here 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.
