National Railways of Zimbabwe key to southern Africa’s economy

DESPITE the adverse effects of illegal sanctions imposed on Zimbabwe, the country through various recapitalisation initiatives is determined to have a functioning and efficient railway system and National Railways of Zimbabwe which will also benefit the entire Southern African region, Deputy Minister of Transport and Infrastructural Development, Joshua Sacco has said.

The railway system cuts across Central-Southern Africa and is the region’s prime mover of import and export and transit traffic.

Goods destined for countries north of the Zambezi have to pass through the NRZ system as do strategic exports from Zambia and the Democratic Republic of Congo (DRC) such as copper.

Because of Zimbabwe’s geographical location, the NRZ has become a key economic enabler with an impact not only in Zimbabwe but the entire Sadc region.

However, still under the yoke of illegal sanctions which have also affected the operations of NRZ, the Second Republic has set the country’s economy on the recovery path in a short space of time.

The US and the EU imposed illegal sanctions as a knee-jerk reaction after the Government embarked on a land reform program around 2 000 meant to correct historical land imbalances that saw the minority whites owning vast tracts of arable land against the black majority who had been relegated to arid areas.

Addressing delegates at the ongoing Southern Africa Railway Association (SARA) Conference and Exhibition Week in Midrand, South Africa yesterday, Deputy Minister Sacco said this year’s Conference and Exhibition Week which is running under the theme: “Enhancing railway capacity and quality of services, through new operating models and partnerships for seamless regional integration and trade” is befitting at a time the railways sector has going beyond mere existence to the pursuit of being service oriented.

Deputy Minister Sacco said under the Second Republic, President Mnangagwa is on an accelerated drive to recapitalise the railway sector in the country.

“As most of you are aware, Zimbabwe has been under sanctions since the turn of the century and these have greatly affected the efficacy of our railway system.

“Like most publicly-owned enterprises in Zimbabwe, our railway’s sector has been struggling to access funds for recapitalisation and purchase of critical spares for its locomotives which were manufactured in countries which imposed sanctions on us.”

Deputy Minister Sacco commended Sadc member states for solidly standing with Zimbabwe.

“Zimbabwe is however grateful to sister Republics in the Sadc region, who have stood with us in the quest to have these unilaterally imposed illegal sanctions removed unconditionally and declaring 25 October as the Sadc Anti-Sanctions Day.”

Yesterday, the region marked the Anti-Sanctions Day which was adopted by the 39th Sadc Summit that was held in Dar es Salaam, Tanzania, in August 2019 and designated October 25 of each year as the day of solidarity with Zimbabwe against the illegal sanctions imposed by some Western nations.

Added Deputy Minister Sacco, “Notwithstanding the sanctions imposed on our country, we are determined to have a functioning and efficient railway system in Zimbabwe, which will also benefit the entire region. As such, the Government has already started working on a number of initiatives which will see the NRZ recapitalised,” he added.

NRZ has in recent years been knocking on the doors of many potential investors, pitching various investment projects in an attempt to modernise its services and operations.

Against this background, the parastatal has engaged a number of investors, including from Turkey where a Memorandum of Understanding (MoU) was signed in 2021 with a company called Yapi Merkezi for the modernisation of NRZ’s rail system.

Under the MoU, the Turkish firm is expected to bankroll the project and provide expertise for repairing rail tracks across the country while also financing the acquisition of new coaches and wagons.

In yet another effort to revamp NRZ, the Government and India in June this year penned a US$81,2 million deal in terms of which the Asian country’s RITES Limited, is expected to supply the Zimbabwe railway firm with rolling stock comprising 3 000 horsepower diesel-electric locomotives and high-sided open wagons.

The African Export and Import Bank (AfreximBank) is expected to bankroll the first installment to RITES Limited before delivery of the first batch of rolling stock is made.

The deputy minister told delegates that Zimbabwe’s strategic location at the centre of Southern Africa places NRZ as a key economic enabler in the region, and the country is determined to have a functioning and efficient railway system which will also benefit the entire region.

“The location of my country in the region places the country at the very heart of the Sadc railway network. Goods to and from the ports in South Africa and Mozambique pass through Zimbabwe on their way to countries to the north and vice versa. “Our location propels us to do more to ensure that we facilitate trade and movement of goods in line with the targets envisaged under the Sadc’s Regional Indicative Development Strategic Plan and the PAN-African vision within the framework of the African Continental Free Trade Area.

“Our strategic location as the gateway into the region requires us to have an efficient railway network so that goods are speedily transported to their destinations,” said Deputy Minister Sacco.

The annual event brings together railway operators, suppliers, customers, manufacturers and all stakeholders under one roof to discuss issues pertaining to the development and growth of the railway sector.-chronicles