Mthuli Ncube unveils ambitious infrastructure funding overhaul

Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube has announced plans to restructure the sinking fund and expand the e-tolling system to secure sustainable revenue streams for road and infrastructure development in Zimbabwe.

These measures, unveiled in the 2025 national infrastructure budget, aim to address the country's growing infrastructure demands amidst limited fiscal resources.

The centerpiece of the strategy is the restructuring of the sinking fund. This includes: Ring-fencing incremental toll collections, vehicle license fees, and excess transit fees. Dedication of fuel levies to the fund.

Minister Ncube emphasized that predictable cash flows are essential for financing and implementing road development projects efficiently, while minimizing costs like standing time charges.

"Implementation of the above measures is projected to mobilize additional resources into the sinking fund," he stated, adding that this will enhance the bankability of road projects, making them attractive for private sector investment through Public-Private Partnerships (PPPs).

The restructured funding will prioritize: Completion of the Harare-Beitbridge highway. The 80-kilometre Harare-Chirundu road. The Beitbridge-Bulawayo-Victoria Falls road.

These projects are crucial for promoting economic growth, enhancing Zimbabwe's competitiveness, and facilitating regional and international trade.

Minister Ncube also revealed plans to expand and modernize the tolling system, which he described as a vital revenue stream. Key initiatives include: Constructing new tolling points at strategic locations. Upgrading existing toll gates to improve efficiency and reduce leakages. Implementing advanced collection systems to expedite processing times.
Economic analyst Mr. Tichaona Takaza described the reforms as transformative.

"By dedicating specific revenue streams to the sinking fund, the government is ensuring sustainable funding for roads while making these projects attractive to private investors," he said.

Economist Gladys Shumbambiri-Mutsopotsi emphasized the broader benefits of improved infrastructure.

"Better roads reduce logistics costs, enhance trade routes, and create long-term economic benefits," she noted.

The tolling expansion was also lauded as a practical step.

"Expanding toll gate operations is a low-hanging fruit for mobilizing resources," said Mr. Takaza.

Ms. Shumbambiri-Mutsopotsi added that efficient toll systems benefit both the economy and road users by ensuring funds are reinvested into the road network promptly.

Minister Ncube's budget reflects a commitment to innovative and sustainable infrastructure financing. The measures aim to address Zimbabwe's pressing transport needs while laying the groundwork for broader economic development.

With analysts and economists backing the reforms, the strategy promises to strengthen Zimbabwe's connectivity and bolster its competitiveness in regional and global markets.