Government hails Mutapa, NRZ rail recapitalisation initiatives

TRANSPORT and Infrastructure Development Minister, Felix Mhona has commended the Mutapa Investment Fund (MIF) and the National Railways of Zimbabwe (NRZ) recapitalisation initiatives saying such efforts will spur economic development in the long term. Mhona was speaking at the Ninth Session of the Line Minister’s Public Entities Corporate Governance Oversight Meeting in Bulawayo Saturday. The convention brought together boards and management of entities under the ministry to review performance and strengthen accountability. “NRZ continues to face capacity and financial constraints. In light of these challenges, it is imperative that we sustain and deepen our engagements aimed at supporting the entity’s recapitalisation agenda. I wish to acknowledge the commendable efforts being undertaken by NRZ, in collaboration with Mutapa Investment Fund, to mobilise resources and strategic partnerships,” he said. Guided by the Resource Financed Infrastructure (RFI) model, MIF is currently spearheading a comprehensive US$400 million recapitalisation and rehabilitation programme for the NRZ. Out of the allocated funds, US$120 million will be dedicated to track infrastructure rehabilitation while US$100 million will be directed at communication networks, ICT, and signalling upgrades. MIF aims to shift bulk freight from the roads to the rails by aligning cargo movement directly with loan repayment. Key corridors prioritised for revitalisation include the Harare–Mutare–Machipanda and the Harare–Bulawayo–Rutenga routes. Said Mhona, “Equally important, the ministry is actively engaged in promoting and launching new railway greenfield projects with a regional status: The Ponta Techobanine project by Zimbabwe, Mozambique and Botswana is at its infancy and needs support and the Lion’s Den-Kafue rail link project with the Government of Zambia is also crucial for expanding rail network and promoting the North-South Corridor link via Kafue.” He added that the arrangements will allow the country’s access to the northern markets in the Democratic Republic of Congo (DRC) and Angola through the Zambian route.