Zimbabwe’s infrastructure landscape is set for a boost with the government’s approval of a US$110 million Public-Private-Partnership (PPP) for the upgrade of the Old Gwanda Road.
This project, undertaken by Zwane Enterprise, marks a significant step towards the country’s ambitious plans to improve its road network through private sector collaboration.
Zwane Enterprise, a Zimbabwean company, expressed interest in the project last year and has allocated a US$150 million budget for the construction and upgrading of the 120-kilometer stretch of gravel road.
The past few months have seen them conducting feasibility studies, with the project requiring the relocation of 43 homesteads to ensure its smooth execution.
This approval by the Zimbabwean cabinet aligns with the government’s recently announced strategy to involve the private sector in major road construction projects through the Built-Operate and Transfer (BOT) model.
This approach aims to leverage private sector expertise and resources to expedite infrastructure development across the country.
The project details, as presented by Honourable Mthuli Ncube, the Minister of Finance and Chair of the Public-Private Partnership Committee, highlight Zwane Enterprise’s proposed investment to rehabilitate the Old Gwanda Road.
This upgrade will not only improve the road’s condition but also shorten the travel distance between Bulawayo and Gwanda by six kilometres compared to the existing route via Esigodini, Mbalabala, and Colleen Bawn.
The project timeline anticipates completion within a year of commencement, with Zwane Enterprise fully financing the US$110 million construction cost. To recover their investment, the company plans to establish two toll gates along the upgraded Old Gwanda Road.
Engineer Bekithemba Mbambo, CEO of Zwane Enterprise, expressed his enthusiasm regarding the cabinet’s approval, signifying their confidence in the company’s ability to deliver this crucial project. Beyond the immediate upgrade, the construction is expected to generate significant benefits for the local economy.
The project will create employment opportunities and stimulate the value chain associated with road construction, providing a much-needed boost to the surrounding communities.
This PPP initiative for the Old Gwanda Road paves the way for further collaboration between the Zimbabwean government and private entities.
By leveraging private sector expertise and resources, the country can accelerate its infrastructure development goals and unlock economic growth opportunities in the region.
From S&D ISSUE 66
