Zimbabwe’s state-owned National Railways of Zimbabwe (NRZ) is negotiating a $115 million financing facility with the African Export-Import Bank (Afreximbank) to expand its freight capacity and strengthen the country’s mineral transportation network.
The proposed funding would be used to purchase 10 locomotives and 315 wagons, as well as repair sections of NRZ’s railway infrastructure, according to John Mangudya, chief executive of Zimbabwe’s sovereign wealth fund Mutapa Investments, under which the railway operator now operates.
The investment comes as Zimbabwe seeks to increase the use of rail for transporting minerals to regional ports. The country is a major producer of lithium and other minerals, but much of its mineral freight is currently transported by road.
In July, NRZ said it had begun hauling lithium concentrate by rail to Maputo port in Mozambique in partnership with private operators. The service provides an alternative to road transportation for mining companies exporting minerals through the regional port.
Increasing rail capacity could be particularly important as Zimbabwe’s mining sector expands. Efficient freight infrastructure can reduce pressure on road networks and provide mining companies with additional options for moving bulk commodities over long distances.
NRZ has faced years of under-investment, contributing to a significant decline in freight volumes. Rail freight fell from a peak of about 12 million tonnes in the 1990s to approximately 2 million tonnes in 2025.
The railway operator is now seeking greater cooperation with private-sector logistics and mining companies to rebuild freight volumes and improve the utilisation of its network.
NRZ recently commissioned three locomotives and 100 refurbished wagons through a partnership with Zimasco, the Zimbabwean ferrochrome operation owned by China’s Sinosteel.
The refurbishment programme illustrates the potential for mining companies and logistics operators to contribute to the renewal of Zimbabwe’s rail fleet while improving the movement of minerals and other bulk commodities.
Mangudya said NRZ requires approximately $600 million in total investment to upgrade its rolling stock and railway network, indicating that the proposed Afreximbank facility would represent one part of a much larger rehabilitation programme.
For Zimbabwe’s mining industry, improved rail infrastructure could have implications for export competitiveness. Moving large volumes of lithium, ferrochrome and other minerals by rail can provide an alternative to trucking and connect mining regions more efficiently with ports in neighbouring countries.
The proposed investment also forms part of a broader need for African mineral producers to strengthen transport corridors as demand for critical minerals increases. Reliable rail networks can support the movement of minerals from inland mines to processing facilities and international markets.
If secured, the Afreximbank financing would give NRZ additional locomotives and wagons while supporting repairs to critical infrastructure. For Zimbabwe, restoring rail capacity could become an important component of efforts to expand mineral exports and strengthen regional trade links.