Business Reporter
THE Minister of Transport and Infrastructure Development, Adv. Felix Mhona says current efforts by the Mutapa Investment Fund (MIF) to revive the ailing National Railways of Zimbabwe (NRZ) are a step in the right direction.
As the principal investment arm of the Zimbabwean government, MIF is a sector-agnostic fund that strategically invests in opportunities aligned with national development goals, spanning agriculture, renewable energy, technology, and mining.
The Fund generates income primarily through dividends and investment profits, and may selectively seek third-party funding, while maintaining conservative leverage through established risk and governance frameworks.
NRZ is one of the State Owned Entities which was placed under the fund following decades of poor management and infrastructure decline.
In his keynote address at the Ninth Session of the Line Minister’s Public Entities Corporate Governance Oversight Meeting in Bulawayo Saturday,Mhona hailed the MIF efforts.
“The National Railways of Zimbabwe (NRZ) continues to face capacity and financial constraints. In light of these challenges, it is imperative that we sustain and deepen our engagements aimed at supporting the entity’s recapitalisation agenda. I wish to acknowledge the commendable efforts being undertaken by NRZ, in collaboration with Mutapa Investment Fund, to mobilise resources and strategic partnerships,” he said.
Guided by the Resource Financed Infrastructure (RFI) model ,MIF is currently spearheading a comprehensive US$400 million recapitalization and rehabilitation program for the NRZ.Out of the allocated funds , US$120 million will be dedicated to track infrastructure rehabilitation while US$100 million will be directed at communication networks, ICT, and signaling upgrades.
MIF aims to shift bulk freight from the roads to the rails by aligning cargo movement directly with loan repayment. Key corridors prioritized for revitalization include the Harare–Mutare–Machipanda and the Harare–Bulawayo–Rutenga routes
“ Equally important, the Ministry is actively engaged in promoting and launching new railway greenfield projects with a regional status: The Ponta Techobanine project by Zimbabwe, Mozambique and Botswana is at its infancy and needs support and the Lion’s Den-Kafue rail link project with the Government of Zambia is also crucial for expanding rail network and promoting the North-South Corridor link via Kafue,” he added
