At the heart of
this plan is a US$100 million project information memorandum (PIM) being
prepared by a consultant appointed by the Mutapa Investment Fund (MIF), under
which NRZ now fails.
The PIM,
accompanied by detailed financial modelling, will form the foundation for a due
diligence exercise to be conducted by a lenders’ technical adviser (LTA),
appointed by a regional export-import bank to assess the viability of NRZ’s
rolling stock procurement project.
“NRZ is
progressing in securing of funding for the supply of contracted rolling stock
under a facility with a regional export-import bank.
“So far, the
bank has appointed the lenders’ technical adviser,” NRZ spokesperson Mr Andrew
Kunambura told Zimpapers Business Hub.
“The LTA is
expected to visit NRZ soon for due diligence.
“The LTA will
provide recommendations to the bank to ensure any identified deficiencies or
gaps are addressed for the comfort of the lenders. Meanwhile, MIF has appointed
a consultant to review existing NRZ documentation and prepare a US$100 million
project information memorandum and financial modelling in preparation for LTA
due diligence.
“NRZ is working
with the appointed consultant in preparation for the lender’s technical
adviser.”
The parastatal
signed a contract with RITES of India on June 15, 2023 for the supply of 10
locomotives and 315 wagons.
Implementation
began in earnest, with trains secured under the agreement entering service on
April 26, 2025, following the formal signing of the facility on March 13, 2025.
The
recapitalisation of NRZ is expected to vastly improve service delivery by
ensuring reliable wagon supply, reducing breakdown-related delays and enhancing
predictability in freight movement.
This is
expected to reduce transport costs for local industries, boost export
competitiveness and enhance the country’s ability to move goods efficiently
across borders.
“The reduction
in logistics costs will result in increased competitiveness of Zimbabwean
commodities on the global market,” he added.
NRZ is a key
enabler of industrial activity, agriculture, mining and regional trade.
An efficient
rail system reduces the cost of doing business, eases pressure on the road
network and facilitates bulk cargo movement.
NRZ once
employed over 20 000 people at its peak.
It remains one
of the largest employers in the transport and logistics sector.
The
rehabilitation of key rail corridors is underway.
The strategic
Machipanda-Mutare line has been completed and commissioned, while work on the
Mutare-Harare section is ongoing.
“This improves
fluidity of traffic movement between the two corridors while offering a
reliable and seamless service to rail customers.
“The move is
envisaged to improve rail market share in the freight sector,” NRZ said.
“The benefits
include reduced road congestion, as well as reduced greenhouse gases, as rail
carbon emissions per tonne moved are lower than road emissions. The initiative
supports the country’s targets for carbon emissions reduction.”
NRZ recently
rolled out several public-private partnerships to refurbish and operationalise
wagons, tanks and locomotives.
Under a
partnership with Zimasco, 84 wagons have already been overhauled and
reintegrated into the fleet. Further, three locomotives are being refurbished.
“The first is
scheduled for injection into service by the end of July, while the other two
are expected to follow in October and December 2025,” Mr Kunambura added.
A total of 100
fuel tankers were also refurbished and returned to service under a partnership
with Strauss Logistics.
“Plans are
underway to deepen the collaboration to include locomotive refurbishment, which
is a positive sign of industry confidence in NRZ’s recovery.”
From the tie-up
with ARC, 20 of 100 tank wagons have been successfully refurbished and
deployed.
The company has
also bolstered NRZ’s operations by hiring two locomotives and supplying
maintenance spares for two others.
Under a
partnership with Zim Gas, eight of the 20 liquefied petroleum gas tanks have
been released and put into service.
“A pilot run
for the gas tanks is yet to be commissioned as part of a phased rollout
strategy.”
These
collaborations are allowing NRZ to tap into private sector capital and
technical capacity while restoring customer confidence and reducing downtime
across the fleet.
In addition,
NRZ recently signed an investment agreement with Chinese firm TransTech — a
subsidiary of China Railway International Group — for the modernisation of its
rail infrastructure to world-class standards.
“A feasibility
study for the determination of the scope of works for the rehabilitation of
rail and upgrade of the rail infrastructure was done and is now work in
progress.
“The potential
investor is still structuring the project proposal and their feedback is still
to be advised,” NRZ said.
While interest
in NRZ is growing, some potential investors are cautious.
“The reception
by potential investors has been cautiously optimistic,” Mr Kunambura said.
“While there is
clear interest in the parastatal’s investment propositions, particularly in
areas that promise strong returns and align with regional infrastructure
development goals, investors have generally sought greater clarity on project
implementation frameworks, regulatory stability and risk mitigation measures.
“Over the past
few years, we have seen increased engagement from both local and international
stakeholders, with several expressions of interest being converted into
structured proposals.
“That said,
decision-making has often been protracted, largely due to the need for due
diligence, alignment with fiscal policies, and, in some cases, awaiting
Government approvals.
“Notably,
recent improvements in governance, project packaging and transparency have
enhanced confidence, and we are optimistic that ongoing reforms and stakeholder
engagement will unlock further commitments that may culminate in binding
contractual agreements.” Herald
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