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Zimbabwe looks to private companies to increase rail freight volumes

Published

3 months ago

September 6, 2024

To increase freight volumes that had fallen as a result of decades of underinvestment, Zimbabwe’s state-owned railway operator has opened up its network to private operators, including a division of South Africa’s Grindrod, an official said.

At its height in the 1990s, Zimbabwe’s National Railways handled 12 million tonnes of cargo annually; today, however, due to a shortage of locomotives and inadequate maintenance of its rail system, it handles less than 3 million tonnes.

In addition, the collapse came after a precipitous fall in mineral and agricultural production brought on by the violent takeover of white-owned farms in 2000, which was supported by Robert Mugabe, the former leader of Zimbabwe.

Nonetheless, China’s desire for lithium and chrome is the primary driver of the recovery in mineral output.

Recent years have seen the establishment of iron ore, steel, chrome, and lithium enterprises in Zimbabwe by Chinese corporations including Tsingshan Holdings, Sinosteel, Sinomine, Zhejiang Huayou Cobalt, and Chengxin Lithium.

Through Mozambique’s ports, they export minerals to China, and the NRZ’s present capability isn’t keeping up with the expanding volume of commodities being exported. With the help of private businesses, the state-owned organisation is currently trying to increase its capacity.

“Last year we uplifted 2.8 million tons against the available business of 3 million tons,” NRZ spokesperson Andrew Kunambura told Reuters in an interview on Wednesday.

“So these private companies are coming in with their locomotives and wagons to augment what we have.”

As part of the agreement, Grindrod has deployed three locomotives and 150 waggons through its Zimbabwean subsidiary, Beitbridge Bulawayo Railway, since March.

The logistics company based in South Africa is preparing for goods train partnerships in the region as underfunded state-owned operators allow private players to access its deteriorating networks.

The mineral-rich country is seeing an increase in new mining operations that need more rail capacity. It also contains some of the largest resources of copper and lithium in the world, which are needed for renewable energy.

To capitalise on the growing market potential in the area, Grindrod has reorganised its rail division, CEO Xolani Mbambo informed analysts last week. The DRC’s inland railway business and Transnet, a South African corporation that also intends to open up its network to private operators, are potential partners for the company. Recently, the company reached an agreement to cooperate with Transnet.

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

2 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

3 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.