Premium Zimbabwean Platform For Showcasing Progressive Industrial, Commercial & Residential Infrastructure Development.
ISSUE 85
ISSUE 84

WHAT THE LANDMARK US$2,18 BILLION RAIL DEAL MEANS FOR ZIMBABWE, ZAMBIA

IN a significant step to boost rail connectivity within the southern Africa region, Zimbabwe and Zambia formalised a US$2,18 billion landmark agreement to construct the Lion’s Den – Kafue rail route that will link the two landlocked countries to ports on the Indian ocean.

Zimbabwe trade fair

The agreement, executed in the presence of Transport and Infrastructural Development Minister Felix Mhona and his Zambian counterpart Frank Tayali during a meeting of the Emerging Railways Properties (Pvt) Limited (ERP) Council of Ministers in Victoria Falls recently.

What is the main purpose of the rail deal?

The deal establishes a framework for the development of the 311 – kilometre railway line will snake its way from the Lion’s Den farming hub through Chirundu, Hurungwe Safari Area, Makuti and Chakuti on the Zimbabwean side and slice through four districts in Zambia, namely — Kafue, Mazabuka, Chikankata and Chirundu.

On this corridor, about 94 kilometres will be in Zambia and 217 kilometres in Zimbabwe. At the centre of the project is a strategic plan to construct a railway linking landlocked Zambia to Zimbabwe, South Africa and the Indian Ocean.

What does this rail agreement reflect?

The agreement reflects a shared vision between Zimbabwe and Zambia to unlock the economic potential of strategic infrastructure, leveraging the rail route as a platform for long-term, inclusive growth for the two landlocked countries. It also marks a major step toward realising SADC’s ambition to enhance connectivity and trade links across all its member states.

Why is this deal strategic?

Once completed, the Lion’s Den – Kafue rail route will ease congestion on roads in Zimbabwe and Zambia, from where most mineral cargoes are currently trucked over long distances to Beira and South African ports. The pact is also strategic for Zambia, which may diversify its export routes via Zimbabwe, Mozambique and South Africa. Already, Zambia is undertaking the Lobito rail project, led by the Africa Finance Corporation (AFC) with backing from the US and EU. The project aims to connect Zambia’s Copperbelt to Angola’s Lobito port by 2030 at a cost estimated between US$3 billion and US$5 billion. The Lobito Corridor hopes to increase the volume of minerals exported to the US and other Western countries using the railway. The Lobito corridor is a top-priority infrastructure project for securing Western access to the DRC and other central African critical minerals. Similarly, Zambia, with the support of China, is stepping up efforts to revamp the Tazara rail link — originally built with Beijing’s assistance in the 1970s to compete with the Lobito Corridor. The railway facilitates copper exports and fuel imports through Tanzania. The Lion’s Den – Kafue route will counter the two routes and secure South African access to central African critical minerals. The Zimbabwe – Zambia rail deal could create a direct Beira, Durban ports connection for landlocked Zambian copper, reducing reliance on long road hauls to Durban or Beira. It could also open up trade opportunities for Zimbabwe in many ways.

What benefits could the Zim-Zam rail deal bring?

Officials from the two countries say there are economic and logistical benefits. This railway route will reduce transit distances significantly: firstly, it’s 800 km shorter from Zambia to the port of Beira as opposed to going via the North-South corridor, secondly, it’s 1000 km shorter than the distance to South African ports, and thirdly, it’s 500 km shorter than the distance to the port of Dar es Salaam. This will certainly lower transport and logistics costs and enhance rail competitiveness. By activating strategically located land, the project could also drive investment, create jobs and deliver infrastructure that will serve people in communities dotted in the two countries. Once complete, this project could develop towns, rural and tourism infrastructure while improving connectivity, mobility and economic productivity.

What is the project scope and route?

The railway line will pass through multiple areas in Zimbabwe, including Chirundu, Hurungwe National Park, Makuti Denis, Chakuti, and Lion’s Den, and through four districts in Zambia: Kafue, Mazabuka, Chikankata, and Chirundu, covering about 311 km with 94 km in Zambia and 217 km in Zimbabwe. It follows the existing highway and uses the 1067mm Cape Gauge with provisions for future upgrade to Standard Gauge. A total of 16 stations and two marshalling yards will be established along the line.

How much will be needed to construct this rail project?

Officials say the construction cost for the project is estimated at US$2.18 billion. Additionally, the line extends 762km from Lion’s Den to the port of Beira in Mozambique through Harare and Machipanda border post, requiring rehabilitation of the 445km Zimbabwean portion to ensure seamless cargo movement. Mozambique’s involvement in the project is therefore critical for delivering the project as a comprehensive package to avoid bottlenecks, the officials said.

What did officials from Zimbabwe and Zambia say?

“We have been championing the issues to do with the Vision 2030 agenda, where we are going to be having an upper-middle-income society as a map. We are not looking at our countries in isolation; we are looking at the entire corridor. In this particular case, we are looking at the Beira Corridor. We had massive benefits attributed to that corridor as a result of logistics so that anyone into logistics will favour that country.

“We want to resuscitate our railway line so that we ease the burden on our roads. The cost of reconstructing our roads will be less because we won’t have the routine maintenance — the burden will have been transferred back to the track,” said Zimbabwe Transport and Infrastructural Development Minister Felix Mhona.

“We must at all costs promote regional connectivity. There were rumours that we may not be interested in this particular corridor, but the contrary is what is actually true. Zambia will do everything possible to open up as many corridors as possible.

“Evidence is already there that the more we have put priority on other corridors, other than the traditional corridors, we have seen the cost of transportation actually come down,” said Zambia’s Minister of Transport and Logistics Frank Tayali.

Success and project scope

The project underscores a broader strategic shift for the two landlocked countries and success of this project will depend heavily on the capacity by Zimbabwe and Zambia to mobilise resources both on the domestic and international markets. Experts hint that the two countries will have to stitch a string of investment deals with China to see this rail project through. Attracting investors from Mozambique and South Africa could also help.

Source

Related Posts