Zimbabwe plans to bring in a private investor to fix up the National Railways system through a resource-financed infrastructure deal. Finance Minister Mthuli Ncube said the government will trade mining rights for railroad repairs, with the investor putting up cash and expertise while getting access to mineral extraction through a joint venture. The first phase needs around $600 million, and the whole rail sector requires about $2 billion to close the infrastructure gap.
The setup mirrors deals done in other countries where mining revenues fund the ongoing rehab work. A Chinese firm already signed a $533 million agreement to help rebuild the network after the president visited Beijing. Local mining companies might also get tapped for public-private partnerships since they're the biggest rail users anyway, and a working train system would cut transport costs while taking pressure off the busted roads.
The setup mirrors deals done in other countries where mining revenues fund the ongoing rehab work. A Chinese firm already signed a $533 million agreement to help rebuild the network after the president visited Beijing. Local mining companies might also get tapped for public-private partnerships since they're the biggest rail users anyway, and a working train system would cut transport costs while taking pressure off the busted roads.
