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The revival of the National Railways of Zimbabwe will go a long way in addressing industry’s transport challenges.

Many companies are forced to use 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 Diaspora Infrastructure Development Group (DIDG) and Transnet of South Africa last year won the $400 million NRZ recapitalisation tender.

The recapitalisation deal has, however, taken longer than expected to conclude and the DIDG and Transnet have applied for the extension of the framework of agreement by a further six months. 

The Foreign Affairs and International Trade Minister Dr Sibusiso Moyo acknowledged in his welcome remarks during the plenary opening ceremony of the Ministerial Meeting of the Third Session of the Zimbabwe-South Africa Bi-National Commission (BNC) this week that the extension of the framework agreement would clear the way for the NRZ recapitalisation project to pace up. 

“I am aware that the DIDG and Transnet board of directors (South Africa) accompanied by the SA ambassador to Zimbabwe, His Excellency (Mphakama) Mbete recently visited Zimbabwe to testify to the fact that they are committed to seeing out the transaction,” said Minister Moyo. 

He said he was happy to learn that the South African Minister of Transport Dr Blade Nzimande was ready to confer in writing the commitment of the South African government to the fact that Transnet is authorised and mandated to undertake the project. 

We want to implore the parties to move with speed once the framework of agreement is extended so that the deal is concluded within the six months.

The recapitalisation of the NRZ as already alluded to, is key to the country’s industrialisation programme.

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.

It is our fervent hope that the parties will this time around meet the deadline to conclude the deal so that work on the rehabilitation and refurbishment of the country’s railway infrastructure and equipment can start.