News / National
NRZ struggles amid sanctions, as revival efforts falter
19 Oct 2024 at 12:26hrs | Views
In its prime, the National Railways of Zimbabwe (NRZ) was the backbone of the nation's transport system, transporting passengers across the country and facilitating the movement of goods beyond Zimbabwe's borders.
The rhythmic sound of trains was a common presence, as they traversed the extensive rail network that connected cities and rural villages. NRZ was more than just a transport service - it was a symbol of connectivity and economic growth, linking landlocked countries like Botswana, Zambia, and the Democratic Republic of Congo (DRC) to crucial seaports in South Africa and Mozambique.
Today, however, NRZ's legacy has faded. The rail system is a shadow of its former self, with several attempts to revive it ending in failure.
The parastatal's efforts to turn around its fortunes have been hamstrung by its inability to access loans from international lenders, who are wary of engaging with a country under Western sanctions. According to sources who spoke with Saturday Chronicle, these illegal sanctions have made it nearly impossible for NRZ to secure much-needed financial support.
Experts and researchers have voiced concern about how the sanctions have restricted Zimbabwe's access to external funding and investment. This has led to diminished trade performance, lower investment, and limited participation in the global economy.
NRZ's role in regional rail transportation remains critical, with a network of 2,760 kilometers stretching across Zimbabwe, providing essential links to Botswana, Zambia, and the DRC. The rail network connects these countries to seaports in Mozambique and South Africa, enhancing regional trade and economic integration.
At its peak, NRZ transported 18 million tonnes of freight annually and employed 20,000 workers. It boasted a fleet of 600 locomotives and 3,000 passenger carriages, making it one of the country's largest employers. However, since 2000, the rail system has steadily declined, with NRZ forced to revert to using steam engines and discontinuing several services.
The ongoing viability challenges facing NRZ have been worsened by the decades-long sanctions imposed on Zimbabwe. Despite this, earlier this year, NRZ announced plans to move 2.7 million tonnes of freight, a 17 percent increase compared to the previous year, as part of its strategy to sustain bulk transportation in a difficult economic environment.
"We are doing well and are happy with the current performance of the company, but there is room for improvement so we can do much more. We are targeting about three million tonnes this year, but with increased capacity, we could move up to five million," said NRZ spokesperson Andrew Kunambura.
Months later, however, NRZ remains in a challenging position. As an economic enabler for key sectors like energy, mining, agriculture, and fuel, the parastatal finds itself stuck in a catch-22 situation.
"The biggest impact of the sanctions has been that the NRZ finds it hard to replenish rolling stock and procure critical spares for our locomotives and wagons. We need new locomotives, wagons, and track equipment, but it's difficult to purchase them under the sanctions imposed by the West," Kunambura told Saturday Chronicle.
He added that NRZ is currently operating on its self-generated funds but faces significant limitations due to its inability to access international lines of credit, which are essential for modernizing its equipment.
Zimbabwe's strained road system has borne the brunt of carrying bulk goods like coal, platinum, and maize—commodities that would typically be transported by NRZ.
"If we could fully recapitalise and increase our capacity, more bulk cargo would be moved by rail, reducing the pressure on our roads. Railways offer cheaper and more efficient transport solutions, which would help us regain market share," Kunambura said.
A revitalized NRZ would also enhance regional connectivity, improving Zimbabwe's trade links with neighboring countries like Zambia, DRC, Mozambique, and South Africa. In 2018, NRZ signed a promising deal with a consortium of Zimbabweans in the diaspora to inject US$400 million into reviving the rail system, but the deal never materialized.
Despite the challenges, there remains hope that with international support and local investment, NRZ could once again become the economic engine that it was in its heyday.
The rhythmic sound of trains was a common presence, as they traversed the extensive rail network that connected cities and rural villages. NRZ was more than just a transport service - it was a symbol of connectivity and economic growth, linking landlocked countries like Botswana, Zambia, and the Democratic Republic of Congo (DRC) to crucial seaports in South Africa and Mozambique.
Today, however, NRZ's legacy has faded. The rail system is a shadow of its former self, with several attempts to revive it ending in failure.
The parastatal's efforts to turn around its fortunes have been hamstrung by its inability to access loans from international lenders, who are wary of engaging with a country under Western sanctions. According to sources who spoke with Saturday Chronicle, these illegal sanctions have made it nearly impossible for NRZ to secure much-needed financial support.
Experts and researchers have voiced concern about how the sanctions have restricted Zimbabwe's access to external funding and investment. This has led to diminished trade performance, lower investment, and limited participation in the global economy.
NRZ's role in regional rail transportation remains critical, with a network of 2,760 kilometers stretching across Zimbabwe, providing essential links to Botswana, Zambia, and the DRC. The rail network connects these countries to seaports in Mozambique and South Africa, enhancing regional trade and economic integration.
At its peak, NRZ transported 18 million tonnes of freight annually and employed 20,000 workers. It boasted a fleet of 600 locomotives and 3,000 passenger carriages, making it one of the country's largest employers. However, since 2000, the rail system has steadily declined, with NRZ forced to revert to using steam engines and discontinuing several services.
The ongoing viability challenges facing NRZ have been worsened by the decades-long sanctions imposed on Zimbabwe. Despite this, earlier this year, NRZ announced plans to move 2.7 million tonnes of freight, a 17 percent increase compared to the previous year, as part of its strategy to sustain bulk transportation in a difficult economic environment.
"We are doing well and are happy with the current performance of the company, but there is room for improvement so we can do much more. We are targeting about three million tonnes this year, but with increased capacity, we could move up to five million," said NRZ spokesperson Andrew Kunambura.
Months later, however, NRZ remains in a challenging position. As an economic enabler for key sectors like energy, mining, agriculture, and fuel, the parastatal finds itself stuck in a catch-22 situation.
"The biggest impact of the sanctions has been that the NRZ finds it hard to replenish rolling stock and procure critical spares for our locomotives and wagons. We need new locomotives, wagons, and track equipment, but it's difficult to purchase them under the sanctions imposed by the West," Kunambura told Saturday Chronicle.
He added that NRZ is currently operating on its self-generated funds but faces significant limitations due to its inability to access international lines of credit, which are essential for modernizing its equipment.
Zimbabwe's strained road system has borne the brunt of carrying bulk goods like coal, platinum, and maize—commodities that would typically be transported by NRZ.
"If we could fully recapitalise and increase our capacity, more bulk cargo would be moved by rail, reducing the pressure on our roads. Railways offer cheaper and more efficient transport solutions, which would help us regain market share," Kunambura said.
A revitalized NRZ would also enhance regional connectivity, improving Zimbabwe's trade links with neighboring countries like Zambia, DRC, Mozambique, and South Africa. In 2018, NRZ signed a promising deal with a consortium of Zimbabweans in the diaspora to inject US$400 million into reviving the rail system, but the deal never materialized.
Despite the challenges, there remains hope that with international support and local investment, NRZ could once again become the economic engine that it was in its heyday.
Source - The Chronicle
