Zimbabwe – NRZ Deal Approved

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The country’s sole rail company takes a first step towards becoming a modern, efficient and profitable railway system.

The National Railways of Zimbabwe (NRZ)’s $400m deal with a consortium led by the Diaspora Infrastructure Development Group (DIDG) and South Africa’s Transnet is back on the rails after Cabinet gave a nod to the proposed tie-up, The Herald reported.

Transport and Infrastructure Development Minister Joram Gumbo confirmed the new development on October 16th. It ultimately leads to the last leg of negotiations before the first phase can begin, he said.

The deal seemed to have run into some hurdles recently after questions were raised on the competence of Transnet to ably invest in the project. However, it later emerged that much of the details and clarifications sought had been submitted and evaluated.

DIDG/Transnet emerged as a winning bidder from five other companies – China Civil Engineering Construction Corporation; Crowe Howath Welsa; Croyeaux (Pvt) Limited; Sinohydro Corporation Limited; and Smh Rail Sdn Malaysia – that had been shortlisted for the deal. In the initial stages, 82 companies submitted bids for the parastatal.

Essentially, DIDG/Transnet has an ambitious three-year strategy that is premised on buying new locomotives and wagons and revamping operational efficiencies. From the $400m capital expenditure, $150m will be earmarked for 24 mainline locomotives and 13 shunting locomotives. Twenty locomotives in the current fleet are expected to be refurbished.

Similarly, NRZ plans to acquire 1,000 new wagons and refurbish 700 that it presently has. It is also envisaged that more than $100m will be invested in modernising and refurbishing the state enterprise’s train control and signalling system.

NRZ Class DE9A locomotive – Bob Adams 2006

The government in September made a commitment to assume $348m of NRZ debt with a view to laying a strong foundation for the investors to start on a new chapter. NRZ public relations manager Nyasha Maravanyika told The Herald Business that stakeholders were buoyant that a debt-free and capitalised NRZ would go a long way in reviving the parastatal.

NRZ has been operating below capacity for years largely because of an obsolete railway system, lack of capitalisation and skills flight among many other reasons.

NRZ board chair Larry Mavima said in an interview with Zimbabwe Independent  that the partnership will result in an immediate increase of up to 2m tonnes per year, based on the business that Transnet already has and will now be carried by NRZ.

He says that while the US$400m fixes the system to make it efficient and competitive, it is not adequate to modernise the system. The next phase will include opening up new corridors – for instance, to create a new line from Chinhoyi through to Kafue in Zambia.

Asked about the salaries owed to workers, Mavima said the situation was expected to improve in the short term and asked employees to be patient.

Johannesburg-headquartered Transnet is a state-owned enterprise that has interests in rail, ports and pipelines. Employing more than 49,000 workers, Transnet held more than $27bn in assets by March 31st, 2017 and generated more than $5bn in revenues during the same period.

Find out more in the Africa Research Bulletin:

ZIMBABWE: Economy Grows
Economic, Financial and Technical series
Vol. 54, Issue 7, pp. 21785A–21786B

ZIMBABWE: Mugabe Talks the Talk
Economic, Financial and Technical series
Vol. 54, Issue 4, pp. 21678B–21679C

ZIMBABWE: Worsening Situation
Economic, Financial and Technical series
Vol. 53, Issue 9, pp. 21425A–21426B

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Kenya – Conservationists Lament Railway Plans


The central section of a huge infrastructure project is to cut directly across East Africa’s oldest national park.

The Nairobi National Park, a wildlife reserve housing lions, hyenas and giraffes just 7km from the centre of Nairobi, is currently in the midst of proposed plans to build a Chinese-funded railway across what is the oldest park in East Africa.

The edges of the park have slowly been eaten away by development and expansion, with power lines stretching overland and pipelines underground. New housing estates also obstruct key migration routes for wildlife, which lead to other nature reserves such as the Maasai Mara.

According to head of the Friends of Nairobi National Park, Sidney Kamanzi, in the 1970s and 1980s around 30,000 wildebeest came to the area, now the numbers are in the region of 300.

The proposed railway line is to be elevated across 6km of the park, on pillars between 8m and 40m tall. Conservationists have deplored the plans, calling it a step too far and claiming the consequences will be disastrous.

UK-based BBC News commented that the new railway project could be a new ‘lunatic line,’ referring to thousands of workers who were killed building railways in the country at the turn of the 19th/20th centuries; around 100 people were killed by lions, while a further 4000 died of diseases.

BBC News 

The railway is part of planned upgrades to the national network linking the Mombasa port to Nairobi and onwards to regional neighbours such as Uganda, Rwanda and South Sudan; it is the largest infrastructure project in the country since independence in 1963.

The second stage of construction, from Nairobi to Naivasha – crossing the park – is seen as the most problematic; many had hoped that the railway would skirt around the park, but according to the government the costs of this were just too high.

Works on the elevated sections are scheduled to begin in January 2017 lasting around 18 months, although in stages to avoid cutting off parts of the park completely. However conservationists have deplored the lack of impact study and disregard for the natural environment.

“If the railway (line) is authorised, it could create a precedent that could mean the death of the park,” said Sidney Quntai, who heads the Kenyan Coalition for the Conservation and Management of Fauna.

On October 3rd a group of Maasi women from Oloosirkon, Kitenkela, Emakoko and Embakasi villages presented a petition to President Uhuru Kenyatta. An environmental tribunal in mid-September ruled against the railway line in the national park until a case had been heard, but the government continues to hold public hearings.

“The processions are not against infrastructure projects. We don’t want those that are poorly thought out, environmentally unsound and abuse our natural heritage like having SGR pass through the park,”  one of the protest organisers, Nkamuno Patita, said, reported Kenyan media service, The Star.

Kitili Mbathi, the Director General of Kenya Wildlife Service (KWS), tried to reassure protesters who recently delivered a petition; “We will be working with the contractor to make sure the construction will be as least disruptive as possible and as environmentally friendly as possible,” he said.

However, Kenyan economist David Ndii said, “It’s a white elephant – we don’t need it…It’s not necessary, its overpriced. Its the most expensive single project we have done and it’s not economically viable now or in the future,” reported BBC News.

(© AFP 30/9 2016)

Find out more in the Africa Research Bulletin:

Economic, Financial & Technical Series
Vol.53, Issue.7, Pp.21362B–21363B

Economic, Financial & Technical Series
Vol. 53, Issue. 6, Pp.21325C–21327A

Economic, Financial & Technical Series
Vol. 53, Issue. 2, Pp.21181A–21182A

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Cameroon – Kribi Port to Ease Congestion


New port infrastructure is an essential part of the government’s development vision.

A loan of US$675.5m, recently approved by the Chinese EXIM bank, is to fund the second phase of construction at the Kribi Deep Seaport, coming as a major boost to the Vision 2035 document, which seeks to unlock mining potential, create jobs and enhance trade.

According to Minister of Economy, Planning and Regional Development, Louis Paul Motaze, cited by CAJNews, “we are not expected to pay any interest on the money within the next seven years…the port will be a centre of trade for the entire region, and will service landlocked Chad and the Central African Republic (CAR).”

A construction contract was awarded earlier in August 2015 to a consortium comprising Bolloré Africa Logistics, CMA CGM, and China Harbour Engineering Company (CHEC), for the construction of a new container terminal. It is hoped the facility will ease congestion at Douala port, reported trade and container news service JOC.

The planned second phase of construction will involve a new 1,102-metre quay, two container berths, two hydrocarbon berths and two bulk cargo berths; it is expected to take 42 months to complete. According to Motaze a third phase will involve the construction of 12 more berths in the northern part of the port.

The Kribi port is intended to fill the gaps at the Douala port; the new port will be to a depth of 16 metres, whereas the Douala port is just 7 metres deep, having to be dredged every year to enable large ships to dock. The Kribi port will accommodate vessels of up to 100,000 tons, up from 15,000 at Douala.

Container and car shipping to Douala, Cameroon

Douala Port – Ascope Shipping, UK

An estimated 95% of Cameroon’s exports pass through Douala; one shipping employee commented that it is “one of the most disastrous port sites in the world” with chronic congestion and a lack of modern equipment, reported the the Africa Report.

Additionally, the facility will cater for minerals such as iron ore and bauxite in the south east of the country. Australia’s Sundance Resources are to build an iron-processing plant for the ore it will mine at Mbalam and Nabeba, which are located near the border between Cameroon and the Republic of Congo.

There is project underway to develop the 510km railway from Mbalam to Kribi for the iron ore export. The contract for the railway project was awarded to Portuguese company Mota-Engil SGPS. The Portuguese firm is also planning a further 71km stretch of railway from Mbalam to Nabeba in the Republic of Congo.

Société Camerounaise des Dépôts Pétroliers and Canadian firm Blaze Energy plan to build an oil storage station at Kribi. French company GDF-Suez and Cameroon’s Société Nationale des Hydrocarbures are working on plans for a liquefied natural gas plant.

Since 2009 Rio Tinto has planned to build an  US$9bn alumina refinery at Kribi with a capacity to produce 1.2m tonnes per year. More than 30 companies in the metals, petrochemicals, cement, agro-industrial and logistics sectors have requested land for projects in Kribi, claimed the Africa Report.

The port is a central part of the Chinese ‘Silk Road Initiative‘ in Africa, with the Kribi port spearheading the projects, alongside railway projects in Kenya, Ethiopia and Angola, according to the Financial Express. The port is a key component of Cameroon’s Vision 2035, which aims to establish Cameroon as an emerging country over the next 25-30 years.

Find out more in the Africa Research Bulletin:

Economic, Financial & Technical Series
Vol.52, Issue.5, Pp. 20857A–20858A

Economic, Financial & Technical Series
Vol.52, Issue. 6, Pp. 20893C–20894B

Economic, Financial & Technical Series
Vol.51, Issue.5, Pp. 20424A–20426B

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East Africa: Investments in Rail Infrastructure


Members of the East African Community pledge to use Central and Northern Transport Corridors to unlock the region’s economic potential

East African Community (EAC) member states, Tanzania, Kenya, Burundi, Rwanda and Uganda are hoping to implement joint infrastructure projects to further boost regional trade and growth. Tanzanian President and Chairman of the EAC, Jakaya Kikwete is quoted by Tanzania Daily News as saying “it is my wish to see the Northern and Central Corridors infrastructure to be one in the future”.

Following a Northern & Central Corridor Investors Forum in Dar es Salaam on March 25th, EAC members launched the construction of the US$14.2 billion East African Central Corridor Railway. According to Transport Minister Samuel Sitta the project will be “the single biggest project ever to be implemented by the Tanzanian government since our countries independence”, report Reuters.

The project will involve constructing 2561km of standard gauge railway to connect Dar es Salaam to landlocked neighbours of Rwanda, Burundi, Uganda, Zambia and eastern DR Congo,  costing around $7.6bn, while two other additional lines will be constructed to serve mining regions in the southern and northern Tanzania, at a cost of around $6.6bn. The main line will contain spur lines that will connect to Kigali, Rwanda, Bjumbura in Burundi, and Masaka, Uganda, explain Tanzania News Daily.


Landlocked countries in Africa are reliant on rail and road links through to main coastal economic and commercial hubs; in East Africa particularly Dar es Salaam in Tanzania and Mombasa in Kenya. In direct competition to the Tanzanian railway plans, Kenya is also constructing a standard gauge railway, funded by China Road and Bridge Corporation, from Mombasa-Nairobi to Kampala.

The Kenyan government has claimed the new railway from Mombasa to the Great Lakes region will boost economic growth by 1.5% per year, report Ventures Africa, eventually extending to replace the ageing colonial-era narrow gauge railway that reaches towards DR-Congo. The initial 609 km section from Mombasa to Nairobi has been started with a finish date set for 2017.

China has agreed to finance part of a $3.2 billion Uganda rail plan, report East Africa Business Week; construction of the Eastern and Northern Standard Gauge Railway that will connect Kampala, Malaba on the Kenyan border and Nimule in South Sudan, while joining the wider standard gauge network, giving fruitful economic benefits from links to Kenya’s coastal commercial hub.

AFKInsider comment that Kenya and Tanzania are vying to be the preferred regional transport hub and with recent oil and gas discoveries in the region, the area has become a hive of exploration. Transport minister Sitta said “We are in competition at all times with the Mombasa port…its a competitive business so we need to be efficient”.

Both countries are also planning to invest in new port projects at Bagamoyo in Tanzania and Lamu in Kenya, report Tanzania Daily News. The Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) project was first proposed in the 1970s to provide Sudan and Ethiopia access to the Indian ocean. In 2013 China Communications Construction Co Ltd won the US$445 million contract for the first three berths of the port and according to the Kenyan government the LAPSSET project is nearing advanced stages. The project includes an economic corridor comprised of road networks, oil pipelines, three airports and a standard gauge railway network from Lamu to Juba, South Sudan and Addis-Ababa, Ethiopia (shown on map below).


The majority of financing for large infrastructure projects across East Africa, and large parts of the African continent as a whole, is stemming from China, who have recently signed agreements with the African Union (AU) for a network of high-speed rail links in the next few decades.

Chinese companies and banks are financing a variety of railway projects across the region  including the Addis-Ababa Light Rail Transit System in Ethiopia. In 2014 China Railway 20 Bureau Group Corporation completed the reconstruction of the Benguela railway connecting Angola, Zambia and south-eastern DR Congo, and China Civil Engineering Construction Corporation (CCECC) is constructing the $4 billion, 740-km electric railway that connects Addis Ababa and Djibouti.

Open database, Aid Data, provide a useful visual mapping of Chinese-financed projects in Africa, available here.

Find out more in the Africa Research Bulletin

Roads & Railways: Kenya
Economic, Financial & Technical Series
Vol.52, Issue.1, Pp. 20715B-20716A

Ports & Shipping: Tanzania
Economic, Financial & Technical Series
Vol.51, Issue.10, Pp. 20607A-20608A

Roads & Railways: Uganda
Economic, Financial & Technical Series
Vol.51, Issue.8, Pp.20536B-20537C

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