Zimbabwe’s state-owned railway operator, National Railways of Zimbabwe (NRZ), has opened its network to private companies, including a unit of South Africa’s Grindrod, to boost freight volumes that have plummeted after years of underinvestment.
Once transporting 12 million tons of cargo annually in the 1990s, NRZ now hauls less than 3 million tons due to a lack of locomotives and poor infrastructure maintenance.
This decline was exacerbated by a sharp drop in agricultural and mineral output following the land seizures of white-owned farms initiated by former President Robert Mugabe in 2000.
However, Zimbabwe’s mineral output is rebounding, driven by high demand for chrome and lithium from China.
Chinese companies, including Tsingshan Holdings, Sinosteel, Sinomine, Zhejiang Huayou Cobalt, and Chengxin Lithium, have established mining operations in Zimbabwe, exporting minerals to China through Mozambique’s ports. This surge in commodity exports has exceeded NRZ’s current capacity.
In response, NRZ is collaborating with private companies to increase its freight capacity. “Last year, we transported 2.8 million tons against an available business of 3 million tons,” said NRZ spokesperson Andrew Kunambura. Private firms are supplying locomotives and wagons to support NRZ’s operations.
Grindrod, through its Zimbabwean subsidiary Beitbridge Bulawayo Railway, has provided three locomotives and 150 wagons since March as part of the initiative.
As underfunded state-owned railway networks across Southern Africa open up to private investors, Grindrod has repositioned itself to take advantage of emerging freight opportunities in the mineral-rich region, which holds significant deposits of copper and lithium needed for clean energy projects.
CEO Xolani Mbambo revealed that Grindrod has secured partnerships with the DRC’s inland railway and is ready to collaborate with South Africa’s Transnet, which is also opening its network to private players.
