President Mnangagwa Nears US$533 Million Rail Deal to Unlock Zimbabwe’s Mineral Exports
President Emmerson Mnangagwa is pushing to secure a US$533 million infrastructure agreement with China Railway Group (CRG) to overhaul Zimbabwe’s aging railway network, a move aimed at boosting mineral exports and revitalising trade logistics.
The deal, one of the largest transport partnerships between Zimbabwe and China in recent years, will modernise key rail corridors, upgrade signaling systems, and deliver new locomotives and freight wagons.
President Mnangagwa met with CRG executives in Beijing on Tuesday during his visit for China’s Victory Parade.
Presidential spokesperson George Charamba described the engagement as a breakthrough, stating,
“Zimbabwe is on the verge of clinching a deal with the China Railway Group so work on this critical enabler starts.
“CRG has been in constant communication with government on revamping and expanding Zimbabwe’s rail network.”
The project includes 17 new locomotives, 209 freight wagons, five new stations, and a strategic new line connecting Beitbridge to Harare.
Finance Minister Mthuli Ncube confirmed that the project will be implemented by TransTech Engineering Corporation, a CRG subsidiary with a strong track record in Africa.
TransTech previously led major railway developments such as the Addis Ababa–Djibouti Railway and the 1,860km TAZARA line between Tanzania and Zambia.
According to Business Daily, a feasibility study is expected to be completed by June 2025, although the formal signing was delayed following last month’s Forum on China–Africa Cooperation summit.
Zimbabwe’s railway infrastructure, built over a century ago during British colonial rule, has suffered decades of neglect.
In its prime during the 1990s, the network moved up to 12 million tonnes of cargo annually.
Today, it hauls less than 3 million tonnes, crippled by poor maintenance, outdated rolling stock, and overgrown tracks.
The deterioration has severely impacted the mining sector, which depends on rail to transport bulk commodities such as coal, chrome, granite, and lithium.
Chinese companies including Tsingshan Holdings, Sinosteel, Huayou Cobalt, and Chengxin Lithium have invested heavily in Zimbabwe’s mineral industry but continue to face logistical hurdles due to the deteriorating rail system.
Analysts say the CRG-led rehabilitation could be a game-changer, helping Zimbabwe meet its US$12 billion mining industry target by improving transport links to ports in Mozambique and South Africa, with China as a key export destination.
The initiative also complements ongoing efforts by the National Railways of Zimbabwe (NRZ), which has partnered with 11 private players to modernise operations.
Among them is South Africa’s Grindrod, which deployed three locomotives and 150 wagons in March 2024 through its Beitbridge Bulawayo Railway subsidiary, helping to ease pressure on key trade routes.
Although the financing model for the CRG deal has not yet been disclosed, officials suggest it may involve a combination of Chinese loans and contractor financing—a structure that could increase Zimbabwe’s debt exposure to Chinese institutions.
Still, if finalised, the project would mark one of the most significant Chinese infrastructure investments in Zimbabwe since the Kariba South hydropower extension, with long-term implications for trade, transport, and industrial growth.
