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The National Railways of Zimbabwe (NRZ) board on Monday approved the US$420 million funding offer from the Diaspora Infrastructure Development Group (DIDG) for the recapitalisation of the company. 

The board has since referred the funding offer to Treasury for approval. The funding is coming from the Afrexim bank. 

A statement signed by NRZ  board chairman Advocate Martin Dinha after Monday’s meeting indicates that the board approved the proof of payment that DIDG has provided as evidence that it has the required funding. 

“The NRZ should await guidance from Treasury on the availability of funding where after, subject to such guidance as may be given by Treasury, the project be progressed in terms of the provisions of the joint Ventures Act as previously directed by Cabinet and communicated to NRZ through the letter from Minister of Transport and Infrastructural Development dated 16 October 2017,” read Adv Dinha’s statement.  

The DIG/Transnet had been given an August 14, 2019, deadline to furnish the NRZ board with proof of funding for the project. Adv Dinha said the board was excited that it had delivered on its mandate as it was making progress towards the implementation of the project. 

The latest development has rekindled hopes for the revival of the NRZ which will provide a permanent solution to industries’ transport challenges. Many companies are using road transport to move either raw materials or finished goods which is expensive because NRZ has limited capacity to move freight. 

Industrialists were therefore excited when the DIDG and Transnet of South Africa won the $400 million NRZ recapitalisation tender but were getting frustrated by the delay in concluding the deal. 

We want at this juncture to implore those involved in the deal to move with speed to conclude the outstanding agreements so that implementation of the project can start as soon as possible. The improved efficiency of the NRZ will enable industries to move bulk cargo by rail as opposed to road and this will drastically reduce transport costs. 

The DIDG and Transnet under the interim solution deal provided NRZ with 14 locomotives, 200 wagons and 34 passenger coaches to improve its capacity. 

This arrangement is reported to be paying dividends as the railways company’s capacity to move freight has greatly improved.