Zimbabwe is currently negotiating a $115 million financial facility with the African Export-Import Bank to help the National Railways of Zimbabwe acquire new locomotives and wagons. The state-owned enterprise operates under the Mutapa Investment Fund and requires an estimated $600 million for a complete infrastructure overhaul.
The National Railways of Zimbabwe is pursuing the $115 million loan to expand haulage capacity, repair infrastructure, and procure 10 locomotives alongside 315 wagons.
John Mangudya, chief executive of the Mutapa Investment Fund, disclosed the ongoing international financing talks. The negotiations highlight a broader national push to rebuild mineral transport capacity as the country’s export industries expand rapidly.
Freight Volumes and Mineral Transport Demands
Decades of underinvestment have taken a heavy toll on the national rail operator. Freight volumes collapsed from a peak of approximately 12 million tonnes in the 1990s down to just 2 million tonnes in 2025.
Reviving the railway network has become urgent as Zimbabwe expands production and exports of vital minerals such as lithium and chrome. Traditionally, mining companies relied heavily on road transport, moving the bulk of their minerals to coastal ports via trucks. Shifting heavy cargo back to rail is seen as a crucial step to lower logistical expenses for miners and manufacturers alike.
To bridge the gap while international financing talks progress, the rail company has forged direct partnerships with major industrial customers. The operator recently commissioned three locomotives and 100 wagons that were refurbished through a partnership with Zimasco, a Zimbabwean ferrochrome producer owned by China’s Sinosteel. Furthermore, the operator began hauling lithium concentrate by rail to Mozambique’s Port of Maputo in partnership with private logistics operators, offering the mining sector a cheaper alternative to trucking.
The Funding Gap and Prior Expansion Plans
While the proposed Afreximbank facility represents a substantial injection of capital, it falls well short of what is ultimately required to modernize the country’s transportation backbone.
The investment required to upgrade the rolling stock and network is estimated at $600 million. Consequently, the $115 million loan covers less than one-fifth of the total capital expenditure needed for a complete overhaul of the state-owned railway enterprise.
Discussions regarding the Afreximbank loan have evolved over several years. Earlier proposals announced in 2023 envisioned a slightly smaller financial package of $81 million dedicated to purchasing nine locomotives and 315 wagons, alongside an additional $34 million earmarked specifically for railway infrastructure repairs. The current framework scales up the planned locomotive acquisition to 10 units while maintaining the 315-wagon target.
Next Steps for Financial Closure
The railway operator previously indicated that due diligence regarding the facility remained active, with officials targeting financial closure this year.
Until those wider financial arrangements materialize, the rail network must continue relying on targeted private sector collaborations to restore its deteriorated equipment and manage the heavy export demands of the mining sector.