China Railway Group Limited, known as CREC, a Chinese construction company listed on the Shanghai and Hong Kong stock exchanges, is in discussions with Zimbabwe to modernise the state-owned National Railways of Zimbabwe (NRZ) through a substantial investment totaling $533 million.
In an interview, Finance Minister Mthuli Ncube emphasised the necessity of upgrading NRZ’s infrastructure, including fixed stocks, rolling stocks, and signaling systems.
“We believe that we could leverage their expertise and financial resources to enhance the NRZ,” he stated.
Ncube highlighted that Zimbabwe, a southern African nation, has trailed behind its neighboring countries such as Mozambique and Zambia in railway development and seeks to narrow this gap through strategic collaborations.
A memorandum of understanding has been signed between NRZ and China Railway to initiate the project, with plans for a feasibility report to be completed by the end of June. Ncube anticipates the formal announcement of the deal between NRZ and China Railway during the upcoming Forum for China and Africa scheduled for August or September.
China Railway Group Limited has a significant presence in the region, having previously undertaken projects such as the construction of the 1,860-kilometer rail line linking Zambia’s copper belt to the port of Dar es Salaam in Tanzania. Additionally, the company has recently completed the Addis Ababa-Djibouti Railway in Ethiopia.
Despite a decline in freight volumes, currently standing at approximately 3 million tons annually compared to peak volumes of 5 million tons, NRZ remains a pivotal player in the region’s transportation infrastructure.
Source NewZimbabwe
