THE Mutapa Investment Fund (MIF) is facilitating a US$431 million loan facility from Afreximbank to support the National Railways of Zimbabwe (NRZ)’s infrastructural rehabilitation.
John Mangudya, chief executive officer at MIF, confirmed the development to NewsDay Business on the sidelines of the Afreximbank Annual Meetings in the Bahamas, where he was attending the Afreximbank board and AGM meetings.
“The fund is working with NRZ to secure a US$431 million (loan) from Afreximbank that is required to rehabilitate the railway infrastructure and purchase of new rolling stock,” he said.
“The strategic direction of MIF was to ensure that the facility should be self-liquidating from the take or pay off-take arrangements that will be put in place by NRZ with its customers.
“This is necessary to ensure that the facility does not have recourse to the fiscus”.
The facility has a 12-year tenor.
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Mangudya expressed confidence in the NRZ management led by Respina Zinyanduko, saying she “has the drive and passion to transform the fortunes of NRZ. She needs our support and that of the NRZ board to fully execute on this national transport backbone.”
The revitalisation of the railway entity is poised to transform the country’s logistics landscape, boosting efficiency across various economic sectors and alleviating pressure on roads.
The development is expected to unlock new economic opportunities by enhancing connectivity between key production zones, domestic markets and international trade hubs.
A well-developed rail network is crucial for fostering domestic, regional and international trade growth, as it links major production centres and provides vital transportation services for businesses.
Zimbabwe’s strategic rail network, which connects to regional networks along the north-south corridor, is facing significant challenges due to its outdated infrastructure.