Govt looks at capital infusion options for National Railways of Zimbabwe
Jan 12, 2017: Advanced level of talks is on within the government for capital funding for the revival of the National Railways of Zimbabwe (NRZ). The government is looking to improve the national rail carrier’s carrying capacity in the short term.
Negotiations for finance for NRZ have been made a top priority given its centrality to Zimbabwe's logistical map. The government is working on a number of initiatives including working with local and international financiers and corporates for joint venture partnerships or Public Private Partnerships, among other options.
During a recent tour, Vice President Emmerson Mnangagwa said that the issue of the NRZ remains one of four key areas for reviving the economy, the northern region in particular.
"We are looking at the National Railways of Zimbabwe to make sure we resuscitate the company. Our discussions are already very advanced," said Vice President Mnangagwa said.
Last year, the NRZ appointed Deloitte and Touche as transaction advisors to boost its capital raising exercise both locally and offshore to secure about $400 million required for re-capitalisation.
The funds raised would be used towards boosting the rail company's locomotives, wagons, track rehabilitation and signalling.