Zimbabwe’s National Railways of Zimbabwe (NRZ) is undergoing a major revamp in partnership with China Railway Group. This collaboration aims to leverage China’s expertise and financial resources to modernize the NRZ’s infrastructure.
The project encompasses significant upgrades for the NRZ’s fixed assets, rolling stock, and signalling systems. Zimbabwe’s railway network lags behind its neighbours like South Africa, Mozambique, and Zambia, and this initiative seeks to bridge that gap.
To plan the project effectively, the NRZ and China Railway have signed a memorandum of understanding. They anticipate finalizing a feasibility report by June 2024 and hope to officially announce the full agreement during the upcoming Forum for China and Africa in August or September.
China Railway boasts a strong track record in the region. They constructed the 1,860-kilometer rail line connecting Zambia’s copper belt to the Tanzanian port of Dar es Salaam in the 1970s. More recently, they built the Addis Ababa-Djibouti Railway in Ethiopia.
This electrified standard-gauge line stretches over 750 kilometers and serves as a critical trade corridor for landlocked Ethiopia. It has significantly boosted connectivity between Ethiopia and Djibouti, promoting industrialization and urbanization along its route.
Over the past six years, the Addis Ababa-Djibouti Railway has seen a remarkable rise in revenue, averaging a 39% annual growth rate. This success is partly attributed to the introduction of premium services like cold chain logistics, various passenger trains, and dedicated vehicle transport.
China’s involvement has also extended to extensive training for local railway technicians. By the end of 2023, over 3,000 Ethiopians and Djiboutians were operating the railway in key roles like train conductors, engineers, maintenance personnel, and management positions.
Similar positive economic transformations experienced in Ethiopia, Djibouti, and Algeria (where China recently completed a metro line extension) are anticipated for Zimbabwe upon the project’s completion.
Estimates suggest the NRZ revamp will require roughly $533 million. Currently, the NRZ transports around 3 million tons of goods annually, which is a decline from its peak capacity of 5 million tons. The railway primarily focuses on exporting minerals like lithium, coal, chrome, and granite, with a significant portion heading to Asian markets, particularly China.
From S&D ISSUE 66
