Key points
-
Zimbabwe, China close to $533 million railway revamp deal.
-
The project targets a failing transport system that hurts mining.
-
Rail upgrade could help Zimbabwe hit $12 billion mining goal.
President Emmerson Mnangagwa met executives from the China Railway Group (CRG) in Beijing on Tuesday to discuss a $533 million plan to modernize Zimbabwe’s struggling railway system.
Presidential spokesman George Charamba called the deal “transformative,” saying it could mark a turning point for the country’s economy.
Finance Minister Mthuli Ncube had earlier confirmed the project’s cost, describing it as one of the biggest investments Zimbabwe has seen in years.
CRG, a company that built most of China’s railway network and has managed major projects across Africa, is expected to lead the revamp.
Rail network collapse hits mining exports
Zimbabwe’s railway network, first built during colonial times, has been running for more than 100 years. At its peak in the 1990s, it carried about 12 million tons of freight each year. Today, that figure has dropped below 3 million tons, less than 15 percent of its past capacity.
Tracks are overgrown with weeds, locomotives have broken down, and wagons sit idle. The decline has badly affected the mining sector, which depends on reliable transport to get minerals such as lithium, chrome, and coal to ports in South Africa and Mozambique.
Under the new plan, CRG will repair old lines, improve signaling systems, and supply 17 locomotives and 209 freight wagons.
The first phase also includes building five new stations and a key line connecting Harare to Beitbridge.
Project seen as boost for mining and trade
Zimbabwe is rich in minerals that are increasingly in demand worldwide, particularly for clean energy technology.
Chinese mining giants, including Tsingshan Holdings and Huayou Cobalt, have invested heavily in the country but often face delays getting products to market due to poor transport.
Officials say the railway upgrade could ease those problems and help Zimbabwe reach its $12 billion mining industry target by ensuring faster and cheaper export routes.
This is not the only rail project underway. The National Railways of Zimbabwe has also engaged private companies, including South Africa’s Grindrod, which has already sent locomotives and wagons to strengthen the system.
What remains unclear is how the $533 million CRG deal will be financed. Analysts believe it will likely involve loans from China, adding to Zimbabwe’s already heavy debt load.
Still, the government is betting the investment will unlock growth and give its mining industry the boost it needs.
