Zimbabwe is seeking $115 million in financing to upgrade its state railway network and increase freight capacity.
The National Railways of Zimbabwe (NRZ) is negotiating the facility with the African Export-Import Bank, known as Afreximbank.
The railway plans to use the money to buy new locomotives and wagons. Part of the funding would also support repairs to ageing infrastructure.
Zimbabwe railway plans new equipment
NRZ plans to acquire 10 locomotives and 315 wagons under the proposed financing.
Zimbabwe’s railway system has struggled with years of underinvestment.
Freight volumes have fallen sharply as a result. The network carried about 2 million tonnes of freight in 2025, compared with around 12 million tonnes at its peak in the 1990s.
John Mangudya, chief executive of Zimbabwe’s Mutapa Investment Fund, confirmed that negotiations over the financing were continuing, according to Reuters.
Mining increases demand for rail transport
Zimbabwe is also expanding production of minerals including lithium and chrome.
Much of the country’s mineral output currently travels by road to ports in neighbouring countries.
However, NRZ wants to move more bulk cargo by rail.
In July, the railway began transporting lithium concentrate to Mozambique’s Port of Maputo with private-sector partners.
Rail transport can provide an alternative to moving large volumes of minerals by road.
Railway needs wider investment
The proposed $115 million facility would cover only part of Zimbabwe’s railway investment needs.
Mangudya said approximately $600 million would be required to upgrade the railway’s rolling stock and network.
The Afreximbank financing has been under discussion for several years.
Earlier plans included $81 million for locomotives and wagons and another $34 million for railway infrastructure.
NRZ said earlier this year that due diligence on the facility was still under way.
Meanwhile, the railway has also worked with major customers to restore existing equipment.
Three locomotives and 100 wagons have recently been refurbished through a partnership with ferrochrome producer Zimasco.
The proposed financing would therefore form part of a broader effort to increase Zimbabwe’s rail capacity and improve freight transport.