CBZ Plans US$600m Road Infrastructure Funding Programme

HARARE — CBZ Holdings plans to mobilise US$600 million to rehabilitate key highways linking Zimbabwe to regional markets, as the financial services group seeks to accelerate infrastructure development through private-sector financing.

CBZ chief executive officer Lawrence Nyazema said the wider road network could ultimately require up to US$5 billion in investment, with US$75 million already secured under the initial financing programme. Nyazema was speaking during an analysts' briefing in Harare on Monday. He said CBZ was preparing to deploy the first US$100 million tranche of a planned US$600 million infrastructure bond.

“We will start with the first 100 million. And if you recall, I said 75 million is already in place,” Nyazema said.

“That’s where my confidence comes from when I say we should be able to start this basing before the end of August.”

The initial programme will target the Harare-Chirundu highway, the Bulawayo-Victoria Falls road and the remaining section of the Beitbridge-Harare highway, with CBZ seeking to bring regional and international financiers into the programme.

Harare-Chirundu highway targeted

Nyazema said approximately 350 kilometres of the Harare-Chirundu highway would be targeted, with priority given to sections that have deteriorated significantly. He said the investment was not being pursued solely for financial returns but was also intended to support economic activity and regional trade.

“The idea is not just to make money, but to make sure that the infrastructure that supports economic activity and regional trade is in place,” he said.

CBZ also plans to finance rehabilitation of the Bulawayo-Victoria Falls highway, which Nyazema described as important for tourism and regional connectivity.

The more than 400-kilometre road could require approximately US$450 million to upgrade, based on an estimated cost of about US$1 million per kilometre. The first phase of the programme will also include approximately US$35 million to complete the remaining section of the Beitbridge-Harare road.

US$5bn road investment needed

Nyazema said the planned US$600 million programme would cover only the first two phases of a much larger infrastructure initiative. CBZ estimates that Zimbabwe's broader road network could require up to US$5 billion in investment.

The bank does not intend to raise the full amount at once. Instead, the projects will be rolled out in stages as financing becomes available. CBZ plans to raise the remaining US$500 million through bond listings, including on the Victoria Falls Stock Exchange (VFEX) and potentially a regional or international exchange, in an effort to attract foreign capital.

Nyazema said the decision to begin with a US$100 million tranche was intended to allow work to start before all the financing was raised. Of that initial tranche, US$75 million is already secured, while the remaining US$500 million will be structured as the projects progress.

Works to begin before rains

CBZ expects to undertake preparatory works before the rainy season, with the larger financing package expected to be in place, or partially in place, by around February. Nyazema said the private sector was increasingly being called upon to help bridge Zimbabwe's infrastructure financing gap. He said financing, rather than a shortage of equipment or technical expertise, had been one of the major constraints affecting the completion of road projects. The proposed investment could provide a significant boost to Zimbabwe's road infrastructure while improving links between major economic centres, tourism destinations and regional trade corridors.

CBZ US$600m road infrastructure