Zimbabwe is negotiating a $115 million financing facility with the African Export-Import Bank (Afreximbank) to revive the country’s struggling railway network...
Zimbabwe is negotiating a $115 million financing facility with the African Export-Import Bank (Afreximbank) to revive the country’s struggling railway network and increase its capacity to transport freight.
The National Railways of Zimbabwe (NRZ) plans to use the proposed financing to acquire 10 locomotives and 315 wagons, while also repairing parts of its ageing railway infrastructure.
John Mangudya, chief executive of the Mutapa Investment Fund, which oversees NRZ, disclosed the negotiations on Thursday.
The proposed financing comes as NRZ continues to face the effects of years of underinvestment, which have significantly reduced its ability to handle freight.
According to the latest figures cited in the Reuters report, freight volumes handled by the railway have fallen from a peak of about 12 million tonnes in the 1990s to around 2 million tonnes in 2025.
Mangudya said NRZ requires about $600 million to fully upgrade its rolling stock and railway network.
This means the proposed $115 million Afreximbank facility would address only part of the railway’s wider capital requirements.
The financing is nevertheless expected to provide additional equipment that could help NRZ increase its freight-haulage capacity.
The railway’s revival has become increasingly important as Zimbabwe’s mining sector expands, particularly in minerals such as lithium and chrome.
Much of Zimbabwe’s mineral production is currently transported by road to ports in neighbouring countries. Moving larger quantities of bulk cargo by rail could provide an alternative for mining companies and reduce pressure on the country’s road network.
NRZ has already begun rebuilding its role in mineral transportation through partnerships with private operators.
On July 21, the railway said it had started transporting lithium concentrate to Mozambique’s Port of Maputo by rail, providing miners with an alternative to transporting the material entirely by road.
The proposed Afreximbank financing has been under discussion for several years.
Earlier plans announced in 2023 envisaged $81 million being used to acquire nine locomotives and 315 wagons, with a further $34 million earmarked for infrastructure rehabilitation.
The latest proposal increases the planned locomotive purchase from nine to 10 while retaining the 315-wagon target.
NRZ said in May that due diligence on the financing was still underway and that it was targeting financial closure before the end of the year.
While negotiations continue, NRZ has also been relying on partnerships with major customers to refurbish some of its existing equipment.
Mangudya was speaking as NRZ commissioned three locomotives and 100 wagons refurbished through a partnership with Zimasco, the Zimbabwean ferrochrome producer owned by China’s Sinosteel.
The partnership provides an example of how NRZ is working with private-sector customers to restore equipment while longer-term financing arrangements are pursued.
The proposed investment comes against a broader push to improve Zimbabwe’s transport infrastructure and support mineral exports.
A stronger rail network would allow the country to move greater quantities of heavy and bulk cargo without relying entirely on trucks, potentially reducing road congestion and transport costs for industries that depend on long-distance freight services.
However, the $115 million facility would not be enough to complete the railway’s wider rehabilitation programme.
With NRZ estimating that approximately $600 million is required to upgrade its rolling stock and network, the proposed Afreximbank financing represents one part of a much larger recapitalisation effort.
The outcome of the ongoing negotiations will therefore be closely watched by mining companies, manufacturers, logistics operators and other businesses that depend on reliable freight transportation.
For NRZ, securing the financing would provide an opportunity to increase available rolling stock and repair critical infrastructure as it seeks to rebuild freight volumes and regain a larger role in Zimbabwe’s mineral and industrial supply chains.
