NRZ must embrace devolution to attract investment

Date:

By Eng. Kudzai Makuku

The National Railways of Zimbabwe (NRZ) stands at a crossroads. Once a symbol of regional connectivity and industrial strength, the state owned enterprise has struggled to keep pace with modern transportation demands. Its current operational model established in 1893 and built around a centralised structure is outdated and no longer fit for purpose. More importantly, it is a significant barrier to attracting the investment urgently needed to revitalise the country’s railway infrastructure.

At present, NRZ operates under a vertically integrated model, managing both the railway infrastructure (tracks, stations, signaling systems) and the operation of trains and locomotives. In theory, such integration can offer centralised control and coordination. However, in Zimbabwe’s current economic and logistical context, this model presents more challenges than benefits.

The dual responsibility has overstretched NRZ’s limited resources. Modern rail systems require massive capital injections, technical upgrades, and operational efficiency needs that are increasingly difficult for a single public entity to meet alone. This is especially true in an environment where competition for state funds is intense and infrastructure development lags behind global standards.

Devolution as a Strategic Solution

To unlock NRZ’s potential and attract meaningful investment, structural devolution is essential. Under this model, NRZ would focus solely on managing and maintaining railway infrastructure. This includes ensuring that tracks, signals, stations, and safety systems are reliable and up to modern standards. Infrastructure maintenance is a long term public good, and NRZ, as a national entity, is best placed to uphold this function.

Train operations, on the other hand, should be opened up to private sector participation. By privatising train services and allowing multiple Train Operating Companies (TOCs) to compete or collaborate, Zimbabwe could emulate models that have worked successfully in other parts of the world, including Europe and parts of Asia. This separation would invite innovation, efficiency, and financial input from local and international investors.

Private operators would bring new locomotives, modern carriages, improved scheduling, and better customer service, all while paying NRZ for access to the infrastructure. This model also introduces a revenue stream for NRZ, reducing its reliance on government subsidies and enabling it to focus on infrastructure development.

Ripple Effects Across the Economy

The benefits of this approach extend far beyond the railway sector. One of Zimbabwe’s pressing infrastructure challenges is the rapid deterioration of national roads, largely due to the overwhelming reliance on road transport for bulk goods movement. Today, thousands of heavy trucks ferry coal, fuel, minerals, and agricultural products across long distances roles that railways are better suited for.

If railway operations are privatised and modernised, these bulk transportation companies would likely become the first investors. Many of them already understand the logistics business and would prefer to move goods by rail if the infrastructure and service were reliable. This shift would significantly reduce pressure on Zimbabwe’s roads, extend their lifespan, and reduce maintenance costs for the state.

Furthermore, shifting freight back to rail would lower greenhouse gas emissions, improve road safety, and reduce congestion. It would also support regional integration by making Zimbabwe a more attractive transit hub within the SADC corridor.

Conclusion

The time has come for a bold and pragmatic reform of NRZ. Devolution of its operations retaining infrastructure management under NRZ while privatising train services is not only feasible but necessary. This structural shift would inject new life into the railway sector, catalyse investment, relieve road infrastructure, and boost economic activity.

NRZ has the potential to become a modern, efficient, and investor friendly railway infrastructure company. But to get there, it must let go of outdated models and embrace a forward looking, collaborative approach.

 Zimbabwe’s Vision 2030  depends on it.

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