ZINARA secures US$10m facility to support ongoing road projects

HARARE – The Zimbabwe National Road Administration (ZINARA) has secured a US$10 million loan facility to support ongoing road rehabilitation projects across the country. The short-term loan will provide essential funding to ensure the timely completion of vital infrastructure projects.

ZINARA, responsible for collecting road user charges and distributing the proceeds to various road authorities, has been actively working to improve the country’s road network. The loan facility will supplement existing resources and enable ZINARA to continue its efforts to enhance road infrastructure and improve road safety.

Responding to a FinX question, ZINARA Head of Corporate Communications and Marketing Tsungie Manyeza noted that, “Zinara has mobilised US$10m equivalent as a short term facility from one of the local banks, for current projects.”

As part of its role, ZINARA provides cash to four important road authorities: the Department of Roads, the District Development Fund, urban councils, and rural district councils. These administrations are in charge of implementing road restoration projects in their respective areas.

The US$10 million loan facility demonstrates ZINARA’s commitment to upgrading the country’s road infrastructure, and by receiving this finance, ZINARA can ensure the continuous advancement of road repair projects while also improving Zimbabwe’s entire transportation network.

Meanwhile, as of July 31, 2024, ZINARA’s outstanding DBSA loan balance had decreased to a considerable US$54 million.

“ZINARA is regular on its DBSA loan as the administration has consistently honored its repayment obligations. As of 31 July 2024 Zinara had reduced the balance to US$54 million,” she added.

The 2010 loan for the Plumtree-Harare-Mutare road development totaled US$206 million. ZINARA fell behind in servicing the loan in 2016 due to non-availability of foreign currency, and other economic factors.-finx