Ailing NRZ Set for US$150 Million Infrastructure Boost as MPs Question Recovery Plan

The struggling National Railways of Zimbabwe (NRZ) is set to receive a major financial injection aimed at reviving the country’s deteriorating rail network, amid growing concern from lawmakers over the parastatal’s failure to meet operational targets.

According to reports presented before Parliament’s Public Accounts Committee (PAC), the NRZ is expected to access approximately US$150 million to rehabilitate railway infrastructure, refurbish locomotives and improve operational efficiency. The funding forms part of broader efforts by the Government and the Mutapa Investment Fund to restore Zimbabwe’s rail transport system. However, Members of Parliament reportedly raised alarm over the NRZ’s worsening financial position, with the railway operator said to be carrying legacy debts and struggling to generate sustainable revenue.

Legislators questioned whether the latest rescue package would deliver meaningful results after years of failed recapitalisation attempts and declining freight volumes. At its peak, the NRZ reportedly transported more than 12 million tonnes of freight annually. Current freight movement has dropped sharply to nearly 2 million tonnes due to ageing infrastructure, vandalism, obsolete rolling stock, and chronic underinvestment.

Parliamentarians also expressed concern that continued rail inefficiencies are increasing pressure on Zimbabwe’s road network as companies shift bulk cargo transportation to haulage trucks. Transport analysts say the collapse of rail freight services has contributed to road damage, rising logistics costs, and an increase in traffic accidents involving heavy trucks.

Officials told the committee that the proposed funding would be directed towards:

• Rehabilitation of railway tracks

• Refurbishment of locomotives and wagons

• Modernisation of signalling systems

• Restoration of operational workshops

• Improvement of freight handling capacity

The revival plan is expected to improve cargo movement for key sectors, including mining, agriculture, and manufacturing.

Economic analysts say restoring rail efficiency could significantly reduce transportation costs for exporters and improve regional trade competitiveness. Transport economist Gift Mugano recently noted that efficient rail systems are critical for industrial growth and export-driven economies.

“Rail transport lowers logistics costs and reduces pressure on public roads, which is important for economic productivity,” he said.

The NRZ has battled operational challenges for nearly two decades, including outdated equipment, salary backlogs, fuel shortages, and infrastructure vandalism. Recent parliamentary oversight visits reportedly exposed deteriorating workshops, idle wagons, and aging locomotives requiring urgent repairs. Industry observers say previous recapitalisation deals stalled due to funding complications, governance concerns and delays in securing sovereign guarantees.

Despite the challenges, Government officials insist the latest intervention could help reposition the NRZ as a strategic driver of Zimbabwe’s economic recovery and regional trade integration.

NRZ infrastructure revamp