National Railways of Zimbabwe modernization efforts

The National Railways of Zimbabwe (NRZ) is pursuing a multi-faceted recapitalization and modernization strategy to restore its infrastructure and rolling stock. Initial efforts have focused on public-private partnerships, such as a US$2.8 million agreement with ferrochrome producer Zimasco. This partnership resulted in the commissioning of three refurbished locomotives and 100 high-sided wagons, allowing the NRZ to expand capacity through freight-charge offsets.

To address broader modernization needs, the NRZ is negotiating with Afreximbank for $115 million in financing, managed by the Mutapa Investment Fund. These funds are intended for the purchase of 10 locomotives and 315 wagons, alongside critical infrastructure repairs. This investment aims to reverse a long-term decline in cargo volumes and support the growing mining sector, particularly for lithium and chrome, by shifting heavy freight from roads to rail.

Expanding its strategic collaborations, the NRZ has entered a partnership with Dinson Iron and Steel Company (Disco) and Grand Railway Solutions (GRS) under a build-operate-transfer model. This agreement aims to facilitate the annual movement of approximately 1.7 million tonnes of freight during its first phase, including 1.1 million tonnes of coal from Hwange to Mvuma and 600,000 tonnes of steel products from the Manhize plant.

As part of this initiative, GRS will supply locomotives, wagons, and fuel, while NRZ provides infrastructure and crews. The deal includes the $27 million rehabilitation of an 80-kilometre rail section between Gweru and Mvuma, and the planned construction of a 50-kilometre line linking Mvuma to the steel plant.