Govt gears up for robust economic growth

Tapiwanashe Mangwiro

AS Zimbabwe positions itself for robust economic growth, the Government has made a bold commitment to revitalise the country’s critical infrastructure. 

The 2025 National Budget, unveiled by Finance, Economic Development and Investment Promotion Minister Prof Mthuli Ncube recently, places renewed emphasis on railways and roads, underscoring the strategic importance of these sectors in driving economic competitiveness.

The rail sector’s decline over recent decades has resulted in a shift to road transportation. This has seen a rise in freight costs. Local roads have been damaged as a result.

The Government now seeks to reverse all this.

Minister Ncube’s budget allocated ZiG180 million for the recapitalisation of the National Railways of Zimbabwe (NRZ), complemented by loan financing and NRZ’s internal resources.

“Rail is the backbone of a thriving economy,” Minister Ncube said on November 28. 

“We are committed to reversing the decline in this sector through strategic investment and partnerships, ensuring efficient transportation of goods and reduced pressure on our road networks.”

Key initiatives include the rehabilitation and upgrading of rail infrastructure, procurement of modern equipment and enhanced security measures, including drone technology and CCTV installations, to combat theft.

Engineer Trust Ruzengwe, a prominent transport expert, emphasised the transformative impact of shifting cargo back to the rail system.

“Rail transport is more efficient and sustainable for bulk goods. Every tonne of cargo moved to rail relieves our roads of excessive strain, significantly extending their lifespan,” he said.

He noted that increased rail efficiency would attract businesses currently over-reliant on road freight, improving overall logistics and reducing costs.

The Government has set goals for rail rehabilitation. The initiative includes reactivation of international corridors such as the Machipanda-Mutare and the Francistown-Bulawayo stretches. These efforts align with Zimbabwe’s broader vision of becoming a regional trade hub.

Economist Mr Tinevimbo Shava commended the budget’s focus on rail transport, viewing it as a strategic enabler for export-led growth.

“A functional railway network lowers logistics costs for exporters, making Zimbabwe’s goods more competitive in regional and international markets,” Mr Shava said.

He, however, warned that consistent implementation and monitoring would be critical to avoid delays that have plagued similar projects in the past.

Ms Gladys Shumbambiri-Mutsopotsi, another economist, stressed the need for diversified funding models. 

“Public-private partnerships (PPPs) have been underutilised in the rail sector. If properly structured, PPPs could unlock the much-needed capital while ensuring operational efficiency,” she noted.

While rail takes centre stage, local road infrastructure continues to be a key focus area. 

A substantial ZiG27,5 billion has been allocated for road development and maintenance in 2025. Part of the funds are earmarked for completion of flagship projects such as the Harare-Masvingo-Beitbridge highway and the Mbudzi Interchange.

The Government has adopted an integrated planning approach under the Emergency Roads Rehabilitation Programme (ERRP), which prioritises the maintenance and upgrade of critical roadways.

Financing strategies include ring-fencing of road user fees and engaging private sector players through PPPs.

Minister Ncube highlighted the progress achieved under the ERRP, citing the Harare-Masvingo-Beitbridge project as a testament to Zimbabwe’s ability to mobilise domestic resources.  

“The success of our road programmes reflects our commitment to building infrastructure that supports growth while ensuring value for money,” he said.

The interplay between road and rail remains pivotal in Zimbabwe’s infrastructure strategy. 

While rail is better suited for bulk cargo, roads are essential for last-mile connectivity and passenger transport.

The Government’s dual focus acknowledges the complementary nature of these systems, aiming for a balanced and sustainable transport network.

Eng Ruzengwe sees investment in the rail system as a way of protecting Zimbabwe’s road infrastructure. 

“A rejuvenated rail sector will reduce the heavy freight on roads, especially from mining and agriculture sectors. This shift is crucial for preserving roads and lowering long-term maintenance costs.”

Mr Shava echoed this view, noting the economic synergies of improved rail and road systems.

“Efficient transport reduces costs across all sectors, from agriculture to manufacturing. Investments in rail and roads are investments in Zimbabwe’s economic resilience.”

Despite the great plans, challenges persist. Slow progress in PPP negotiations, theft of railway assets and funding constraints have hampered past efforts.

Ms Shumbambiri-Mutsopotsi called for greater transparency and accountability in project execution. “We need clear timelines, measurable outcomes and robust oversight mechanisms to ensure these investments yield tangible benefits,” she said.

For the road sector, the increased appetite from private players comes with risks.

Minister Ncube assured that Treasury would rigorously vet PPP proposals to avoid speculative practices, with stress being put on proof of funding and technical capacity.

Zimbabwe’s 2025 National Budget underscores a transformative vision for infrastructure. 

With strategic investments in rail and roads, the Government aims to enhance connectivity, reduce costs and boost economic competitiveness. The success of these initiatives will depend on effective implementation, innovative financing and robust stakeholder engagement.

“Transport infrastructure is the foundation of economic growth. We are building not just for today, but for generations to come,” Minister Ncube said.