Zimbabwe Eyes China-Backed Resource Financing to Fund $34 Billion Transport Infrastructure Upgrade
Zimbabwe is exploring resource-backed financing agreements with China to fund major road and railway infrastructure projects as the government seeks to modernize its transport network and accelerate economic growth.
Finance Minister Mthuli Ncube revealed that discussions are underway with China Railway on financing mechanisms that would use future revenues generated from Zimbabwe’s natural resources to repay infrastructure-related loans.
The talks took place on the sidelines of the World Economic Forum’s Annual Meeting of the New Champions in Dalian, China.
Under the proposed financing model, Zimbabwe would leverage future income from its mineral resources to support investment in priority road and railway projects, helping bridge critical infrastructure funding gaps.
“We spoke to them about resource-linked debt instruments that we want to explore going forward to support our infrastructure development, especially roads and rail,” Ncube said.
According to the finance minister, the government will first identify priority transport projects, assess expected revenue streams including toll collections and determine any financing shortfalls that could be addressed through resource-backed investment structures.
Zimbabwe is Africa’s largest lithium producer and holds substantial reserves of lithium, gold, platinum, chrome and other strategic minerals.
However, decades of economic challenges and underinvestment have left much of the country’s transport infrastructure in need of significant rehabilitation.
The African Development Bank estimates that Zimbabwe requires approximately $34 billion to modernize its transport and logistics infrastructure, making alternative financing mechanisms increasingly important.
Revitalizing the country’s railway network has become a strategic priority as mining production expands and demand grows for efficient transport links connecting mines to export corridors and international markets.
The proposed financing structure reflects similar resource-backed infrastructure agreements implemented elsewhere in Africa, including the Democratic Republic of Congo’s Sicomines partnership with Chinese companies.
Zimbabwe Maintains Lithium Export Ban
Separately, Ncube confirmed that Zimbabwe will proceed with its planned ban on lithium concentrate exports from January 2027, despite requests from mining companies to postpone the measure.
The policy forms part of the government’s broader strategy to increase domestic value addition by requiring minerals to be processed locally before export, rather than shipping raw materials overseas.
Chinese companies have invested more than $2 billion in Zimbabwe’s lithium sector since 2021, positioning the country as an increasingly important supplier in the global electric vehicle battery supply chain.
Ncube said the industry is expected to process lithium concentrates domestically through new lithium sulphate processing facilities, including a recently completed plant developed by Zhejiang Huayou Cobalt and another facility currently under construction at Sinomine Resource Group’s Bikita Mine.
Zimbabwe’s dual strategy of expanding transport infrastructure while promoting domestic mineral beneficiation is aimed at capturing greater economic value from its abundant natural resources, strengthening industrial development and supporting long-term economic growth.
