Story by Yolanda Moyo
GOVERNMENT is on the verge of concluding a deal to secure an external credit line to capacitate the National Railways of Zimbabwe (NRZ), a key parastatal in the country’s logistics and transportation sector.
NRZ was once a cornerstone of Zimbabwe’s transport and logistics sector, playing a pivotal role in the country’s economic development.
Recognising the strategic importance of a modern and efficient railway system, the Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube revealed government is close to finalising a deal aimed at revitalising the NRZ.
He said, “The revival of the NRZ is critical for lowering the costs of doing business by reducing the cost of transportation especially bulk transportation. For NRZ, we are supporting it to source a credit from outside to fix the railway line, get more rolling stock and to fix the signaling system. So we are close to concluding a deal for an external credit line. l think we will see some progress during 2025 so that we can get some of the heavy trucks off the roads. We need to shift all that cargo to the railway infrastructure and this can be done commercially and profitably so that we can be able to service the loan.”
Economic analyst Mr Stevenson Dlamini emphasised the pivotal role of a robust railway system in boosting industry performance and overall economic growth.
“A well-functioning NRZ is crucial for the efficient movement of goods, particularly bulk commodities such as minerals, agricultural produce, and manufactured goods. By reducing transportation costs and improving logistical efficiency, a revitalised NRZ can significantly enhance the competitiveness of Zimbabwean industries, both domestically and in regional markets. The revival of NRZ would have positive spillover effects on other sectors of the economy, including manufacturing, agriculture, and mining. Unlocking the potential of these sectors by facilitating access to markets, reducing input costs, and stimulating investment,” he said.
Government’s commitment to reviving NRZ aligns with its broader national development agenda, which prioritises infrastructure development as a key enabler of trade, investment and economic growth.
