Zimbabwe President Emmerson Mnangagwa met China Railway International Group executives Tuesday to finalise a $533 million infrastructure deal aimed at revitalizing the southern African nation’s deteriorating rail network.
The discussions focused on Zimbabwe’s digital future, including expanding investment in ICT talent, strengthening infrastructure, and introducing advanced technologies into the country. The meeting occurred as Mnangagwa arrived in Beijing to attend Wednesday’s commemoration of the 80th anniversary of Japan’s World War Two surrender.
Finance Minister Mthuli Ncube confirmed the investment value during earlier negotiations. “We believe that we could make use of their expertise and financial muscle to improve the NRZ,” Finance Minister Mthuli Ncube said in a weekend interview.
The deal involves TransTech Engineering Corporation, a China Railway International Group subsidiary with extensive African infrastructure experience. The company previously built the 1,860-kilometer Tanzania-Zambia railway and Ethiopia’s Addis Ababa-Djibouti line.
Zimbabwe’s rail network has declined sharply from its 1990s peak when it transported 12 million tons annually. National Railways of Zimbabwe (NRZ) now hauls less than three million tons.
The infrastructure deterioration has severely impacted mineral exports, particularly from Chinese mining operations. Companies including Tsingshan Holdings, Sinosteel and Zhejiang Huayou Cobalt face transportation constraints moving lithium, chrome and coal to ports.
The modernization project includes rehabilitation of existing lines, new signaling systems, acquisition of 17 locomotives and 209 freight wagons. Additionally, NRZ is exploring a partnership with the University of Zimbabwe to develop railway solutions through the university’s innovation hub.
Phase one encompasses five new stations and a critical Beitbridge-Harare line connecting to South Africa, Zimbabwe’s largest trading partner.
“Zimbabwe is on the verge of clinching a deal with the Chinese Railway Group so work on this critical enabler starts,” presidential spokesman George Charamba said in Beijing.
NRZ Public Relations and Stakeholder Manager Andrew Kunambura confirmed that the feasibility study has been completed and a report will be presented.
The project forms part of Zimbabwe’s broader rail strategy involving 11 private companies. South Africa’s Grindrod deployed three locomotives and 150 wagons through its Beitbridge Bulawayo Railway subsidiary since March 2024.
China remains Zimbabwe’s largest investor with total investments exceeding $4.4 billion. In 2024 alone, trade between the two countries reached US$3.8 billion — a 24% increase from the previous year.
The railway investment addresses Zimbabwe’s push to achieve its $12 billion mining industry target by improving mineral transport to Mozambique and South African ports for Asian markets.
Funding mechanisms remain undisclosed, though analysts expect Chinese loans and contractor financing arrangements, adding to Zimbabwe’s existing debt obligations to Chinese entities.
The formal announcement was initially planned for the Forum on China-Africa Cooperation in August but has been delayed pending final negotiations.
