NRZ secures US$115m Afreximbank deal to revive rail system

The National Railways of Zimbabwe (NRZ) is finalising a US$115 million loan agreement with the African Export-Import Bank (Afreximbank) aimed at rehabilitating critical rail infrastructure, locomotives, and rolling stock as part of efforts to restore the parastatal's operational capacity.

The update was given by Mutapa Investment Fund deputy chief investment officer, Mr Ernest Denhere, while presenting before Parliament's Public Accounts Committee on Tuesday.

Denhere said the funding will be channelled towards upgrading rail lines, repairing locomotives, and restoring wagons in a bid to improve freight efficiency and revive a sector that has suffered years of decline.

At its operational peak, NRZ was moving approximately 12 million tonnes of freight annually. That figure has since dropped sharply to around 2.1 million tonnes, reflecting the deterioration of infrastructure, equipment shortages, and reduced service reliability.

The planned rehabilitation is part of a phased turnaround strategy being implemented by NRZ, which prioritises infrastructure restoration as a foundation for expanding operations and regaining market share in freight transport.

Denhere said the approach is designed not only to stabilise existing operations but also to lay the groundwork for future expansion once core systems are restored.

The rail revival effort comes at a time when Zimbabwe's logistics sector remains heavily dependent on road transport, a situation that has increased costs for industry and contributed to higher diesel consumption and road congestion.

Government has repeatedly identified rail rehabilitation as a strategic priority, particularly for supporting mining exports, bulk commodity transport, and regional trade corridors.

If successfully implemented, the NRZ upgrade programme is expected to improve freight capacity, reduce pressure on road infrastructure, and enhance the competitiveness of Zimbabwe's export-driven sectors.