The Government of Zimbabwe is in advanced negotiations to secure a private partner for the rehabilitation of the National Railways of Zimbabwe under a resource-financed infrastructure model.
Phase one of the project, expected to cost US$600 million, aims to revitalise the country’s transport infrastructure and strengthen both domestic and regional connectivity.
Finance Minister Mthuli Ncube announced in the 2026 National Budget Statement that the government is leveraging mineral resources to attract the capital needed for the overhaul of the NRZ.
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The rehabilitation is expected to reduce transportation costs, ease pressure on ageing road networks, and attract both domestic and foreign investment. As part of the revival strategy, the government also plans to pursue public-private partnerships with local mining houses.
Under the resource-financed model, the government will provide mining concessions to a joint venture company as its equity contribution, while the investor will inject fresh capital and technical expertise.
Revenues generated from joint venture operations will be used to fund subsequent stages of the railway rehabilitation programme.
NRZ welcomed the announcement, stating: “Great news for NRZ in the 2026 Budget Statement, as the Finance Minister confirms that the long-awaited rehabilitation of the country’s railway infrastructure is imminent, with phase one expected to cost US$600 million.”
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