Zimbabwe is launching a massive US$3 billion rail infrastructure development and upgrade programme during the National Development Strategy 2 (NDS2) period (2026 to 2030), aimed at fundamentally transforming the country’s rail network to strengthen SADC interconnectivity and enhance regional trade. The core of this initiative is the critical rehabilitation of the National Railways of Zimbabwe (NRZ), a vital step towards revitalizing the country’s transport infrastructure.
The Government is at an advanced stage of engaging an external private investor to undertake the NRZ rehabilitation using a structured Resource Financed Infrastructure (RFI) Model. This model, which has been successful globally, involves the private investor injecting fresh capital and expertise for the railway work. In a pivotal move, the Government’s equity contribution will consist of availing mining concessions to the joint venture company formed with NRZ.
Revenues generated from these joint venture mining operations will then be used to implement the next stages of the railway rehabilitation process. A feasibility study determined that approximately US$600 million is required for Phase 1 of the entire rehabilitation.
This PPP approach, which will also explore partnerships with local mining houses, is critical to modernize the rail system and improve trade competitiveness, as miners are major users of the system. An efficient railway will lower transportation costs, ease pressure on roads, and unlock the potential of the mining sector to generate revenues for upgrading the network.
The broader $3 billion programme, primarily funded through strategic Public-Private Partnerships (PPPs) and debt finance, includes several major projects. The largest planned investment is the estimated US$1.2 billion upgrade of the Mutare–Harare–Chirundu line and the construction of the new 217-kilometre railway line linking Lion’s Den to Kafue in Zambia (2027–2030).
Additionally, 1,700 kilometres of track will undergo rehabilitation, costing an estimated US$480 million, which is expected to achieve a 30 percent increase in train speed. To boost operational capacity, 30 mainline locomotives will be procured for US$210 million, increasing the national haulage capacity to over 6.7 million tonnes per year. This comprehensive plan forms a core part of the 2026 National Budget’s theme: “Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030”.
