Zimbabwe is seeking a $115 million loan from the African Export-Import Bank (Afreximbank) to rehabilitate its struggling state-owned railway and expand freight capacity as growing mining activity increases demand for efficient transportation.
According to africa.businessinsider.com, the proposed financing is expected to support efforts to restore the railway network and improve its ability to move minerals and other cargo, reducing pressure on road transport while strengthening the country’s logistics infrastructure.
The railway upgrade comes as Zimbabwe seeks to leverage expanding mining activity, with improved freight connectivity seen as important to moving increased mineral output to domestic and export markets.
The National Railways of Zimbabwe (NRZ) plans to use the financing to acquire 10 locomotives and 315 wagons and repair parts of its ageing railway infrastructure.
John Mangudya, chief executive of Zimbabwe’s sovereign wealth fund Mutapa Investment Fund, disclosed the ongoing negotiations on Thursday, according to Reuters.
The talks come as NRZ struggles with years of underinvestment that have sharply reduced its capacity. Freight volumes have fallen from a peak of about 12 million tonnes in the 1990s to just 2 million tonnes in 2025.
Mangudya said the railway requires about $600 million to upgrade its rolling stock and network, meaning the proposed Afreximbank facility would cover less than a fifth of its estimated investment needs.
Zimbabwe looks to rebuild mineral transport capacity
Reviving the railway has become increasingly important as Zimbabwe expands production and exports of minerals including lithium and chrome.
Most of the country’s minerals are transported to ports by road, but NRZ has been trying to shift more bulk cargo back to rail.
In July, the company began transporting lithium concentrate to Mozambique’s Port of Maputo in partnership with private operators, providing miners with a cheaper alternative to trucking their products to the coast.
The $115 million Afreximbank financing has been under discussion for several years.
Earlier plans announced in 2023 envisaged using $81 million to purchase nine locomotives and 315 wagons, with another $34 million allocated to railway infrastructure.
The latest plan increases the proposed locomotive purchase to 10.
NRZ said in May that due diligence on the facility was still underway and that it was targeting financial closure this year.
The railway has meanwhile turned to partnerships with major customers to restore some of its equipment.
Mangudya spoke as NRZ commissioned three locomotives and 100 wagons refurbished through a partnership with Zimasco, the Zimbabwean ferrochrome producer owned by China’s Sinosteel.
Upgrading Zimbabwe’s rail system would cut transport costs for miners and manufacturers while keeping heavy freight off the roads. However, since the National Railways of Zimbabwe estimates a complete overhaul will cost $600 million, the proposed Afreximbank loan is just the first step in a much larger project.
