Zimbabwe is in discussions with China Railway Group Ltd. to revitalise the state-owned National Railways of Zimbabwe (NRZ) with an ambitious plan coming to $533 million.

Finance Minister Mthuli Ncube revealed in a recent interview that the collaboration aims to leverage China’s expertise and financial resources to modernise the country’s railway infrastructure, addressing both fixed and rolling stocks as well as signalling systems.

“We believe that we could make use of their expertise and financial muscle to improve the NRZ,” Bloomberg quoted Minister Ncube as saying, stressing on the urgent need for upgrades to bring the NRZ on par with its regional counterparts.

Zimbabwe has fallen behind neighbouring countries like Mozambique and Zambia in terms of railway development and aims to bridge this gap through strategic partnerships.

A memorandum of understanding has been signed between NRZ and China Railway, marking the initiation of the project.

A feasibility report is expected to be completed by the end of June, with plans to announce the formal agreement between the two parties during the upcoming Forum for China and Africa scheduled for August and September.

This collaboration signifies China Railway’s continued involvement in regional infrastructure projects, building on its extensive portfolio in the continent.

Zimbabwe Railways estimates that approximately $533 million will be required to execute the comprehensive recovery plan.

Despite a decline in freight volumes, which currently stand at around 3 million tons annually compared to peak volumes of 5 million tons, NRZ remains a crucial player in transporting a variety of goods for export, including lithium, coal, chrome, and granite.

Most of these mineral exports are destined for Asian markets, particularly China.

(With inputs from Reuters)