Shareholder says refurbished locomotives and wagons signal that Zimbabwe’s logistics gap is closing and “the giant is awakening”

Harare- The Chief Executive Officer of the Mutapa Investment Fund (MIF), Dr John Pagwesese Mangudya, has described the refurbishment of three locomotives and 100 high-sided wagons under a Public–Private Partnership (PPP) between the National Railways of Zimbabwe (NRZ) and Zimasco as “the visible manifestation of a revitalised national backbone,” declaring that the country’s long-standing logistics deficit is finally being closed.

Speaking as the shareholder at the official commissioning of the equipment, Dr Mangudya said the event represented far more than the handover of steel and machinery.

“What we are witnessing on the tracks today is more than steel and equipment. It is the visible manifestation of a revitalised national backbone,” he said.

“For years, our resurgent mining and agricultural sectors have outpaced our logistics capabilities. Today, with such an initiative, we declare that the gap is closing and the giant is awakening.”

The commissioning ceremony, attended by senior government officials, diplomats, and corporate leaders, marked the culmination of a strategic partnership in which Zimasco, one of NRZ’s largest freight clients, funded the overhaul of out-of-service rolling stock in exchange for dedicated usage and incentivised freight rates.

Transport and Infrastructural Development Minister Hon. Advocate Felix Mhona, who was the guest of honour, put the value of the PPP at USD 2.8 million.

Dr Mangudya said the PPP model had proven to be a “win–win” arrangement that allowed high-capacity freight clients to invest directly in refurbishing idle assets.

“Private partners secure supply-chain reliability, while NRZ injects immediate operational capacity into its asset base,” he explained.

“NRZ gains business and revenue, while Zimasco is assured of reliable movement of its ferrochrome and chrome business.”

The MIF chief executive underscored that the fiscal budget alone could not carry the enormous cost of infrastructure renewal and rolling stock overhaul, hence the deliberate invitation to the private sector to partner with the State in revitalising Zimbabwe’s rail sector.

Dr Mangudya linked the initiative to the broader national development agenda, noting that following the strategic transfer of NRZ into the Mutapa Investment Fund, oversight had been refocused on performance, commercial viability, and wealth creation.

“Every locomotive restored and every wagon returned to service advances our National Development Strategy and Vision 2030 goals,” he said, adding that rail remains the most cost-effective and environmentally friendly mode for bulk haulage.

“By shifting minerals and commodities back to rail, we save billions in road maintenance costs, reduce transit times, and strengthen our national corridors’ performance.”

He commended the NRZ Board and Management for executing the refurbishments locally, saying the technical skill on display demonstrated that Zimbabwe possesses the human capital to power its own industrialisation. Local refurbishment, he noted, creates engineering jobs and fosters technological self-reliance.

However, he issued a stern charge to NRZ management and staff:

“The shareholder expects absolute transparency, optimal resource utilisation, and strict maintenance protocols. Preventative maintenance and faster turnaround times must remain your daily obsession.”

Looking ahead, Dr Mangudya said Zimbabwe’s ambitions extended beyond its borders, citing the rehabilitation of the Machipanda–Harare line with Mozambique and the Chicualacuala–Dabuka–Plumtree line under a USD 10 million tripartite arrangement with Botswana and Mozambique as vital components of regional trade integration.

He disclosed that with MIF support, NRZ is pursuing rolling stock recapitalisation, financing initiatives, infrastructure rehabilitation, and strategic partnerships.

Key interventions include the outsourced refurbishment of three locomotives under a CBZ loan facility, due for entry into service by 31 December 2026; the leasing of four Sheltam locomotives facilitated by Mutapa to ease immediate traction constraints; a USD 6 million Ecobank facility for the refurbishment of 520 wagons and acquisition of maintenance equipment; and a USD 115 million Afreximbank facility for the procurement of 10 new locomotives, 315 wagons, and rehabilitation of key rail infrastructure.

Collectively, he said, these investments would improve locomotive and wagon availability, enhance network reliability, and increase freight capacity. In the medium to long term, NRZ will require USD 600 million to close infrastructure gaps, procure new rolling stock, and upgrade workshops, with a process already underway with CRIG of China to unlock that initiative.

In his address, Transport Minister, Felix Mhona reaffirmed government’s commitment to the comprehensive recapitalisation of NRZ, describing the partnership as “a win-win financial engineering model.”

He said by funding the overhaul of idle wagons in exchange for freight charge offsets, Zimasco had secured a reliable supply chain route to international markets via regional ports such as Beira and Maputo, while NRZ had expanded capacity without placing an immediate fiscal burden on the Treasury.

“The commissioning of these wagons will immediately ease bottlenecks in the logistics value chain. It will ensure that Zimasco’s chrome products reach regional ports safely, predictably, and competitively—making Zimbabwean exports more attractive on the global stage,” Minister Mhona said.

He revealed that in collaboration with MIF, the Ministry is pursuing partnerships to rehabilitate tracks, upgrade signalling systems, and procure new locomotives through the Afreximbank facility and a Resource Finance Investment model with China Railway International Group. He also cited improved cooperation with South Africa on reviving rail along the North–South Corridor.

The Minister called on other mining houses, agricultural players, and liquid fuel importers to emulate the Zimasco model, saying Government’s doors remain open for private participation in locomotives, wagons, and infrastructure modernisation through refurbishments, leasing, or new procurement.

The success of the NRZ–Zimasco PPP adds to a growing record of achievements by the Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund established under the Mutapa Investment Fund Act to manage a diversified portfolio of State-owned enterprises and strategic assets on commercial lines.

Since NRZ’s strategic transfer into MIF, the fund has prioritised performance, commercial viability, and wealth creation across its portfolio, moving away from the traditional model of State enterprise management towards active, returns-focused oversight.

The fund has facilitated innovative financing arrangements, including the leasing of Sheltam locomotives to ease immediate traction constraints and the mobilisation of substantial facilities from institutions such as Ecobank and Afreximbank.

Under Dr Mangudya’s leadership, MIF has positioned itself as a catalytic investor, leveraging private capital to unlock value in underperforming national assets without overburdening the fiscus.

The NRZ turnaround is emerging as a flagship example of this approach, demonstrating that targeted private-sector collaboration can deliver immediate and tangible victories even as larger-scale recapitalisation programmes are pursued.

As the locomotives and wagons prepared to roll into service, Dr Mangudya extended an open challenge to the private sector: “We now challenge other private sector players with bulk cargo to join this revitalisation journey and help write the next chapter of Zimbabwe’s rail history.”

“May these resources run efficiently, may they drive trade, and may they power our nation toward a prosperous, empowered, upper-middle-income economy by 2030.”