HARARE — Zimbabwe’s admission as a borrowing member of the BRICS New Development Bank (NDB) has opened a potentially significant new source of long-term infrastructure finance, with the Government considering a pipeline of major energy, transport and urban development projects for possible funding.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Government was assessing several strategic projects that could eventually be submitted to the NDB, positioning the multilateral lender as an additional source of development capital as Zimbabwe seeks to address its infrastructure deficit and accelerate economic growth.
Among the projects under consideration are the expansion of power generation at Hwange, the refinancing and asset recycling of the Beitbridge–Harare highway, Zimbabwe’s contribution to the Batoka Gorge Hydroelectric Project and the development of an urban mass-transit system linking Chitungwiza, Harare and Mt Hampden.
The proposed financing pipeline comes at a time when Zimbabwe is seeking to diversify its sources of external capital and reduce its dependence on traditional Western-led development finance institutions. Membership of the NDB gives Harare access to an institution established specifically to finance infrastructure and sustainable development projects in emerging and developing economies.
Hwange expansion on the agenda
In the energy sector, Government is considering financing for Hwange Power Station Units 9 and 10, building on the completion of Units 7 and 8.
The expansion would add to Zimbabwe’s domestic generation capacity and potentially reduce the economy’s exposure to electricity shortages, which have historically constrained industrial production, mining and investment.
Additional generation capacity is particularly important as Zimbabwe seeks to expand energy-intensive industries, including mining and mineral beneficiation, while improving the reliability of electricity supplies to businesses and households.
Beitbridge–Harare highway could unlock capital
Government is also considering an asset-recycling model for the Beitbridge–Harare highway, potentially allowing it to recover capital already invested in the road while retaining the infrastructure as a revenue-generating asset.
Under the proposed structure, financing would be repaid through toll revenues over a concession period of between 25 and 30 years.
Such a model could allow Government to recycle capital from an existing infrastructure asset into new projects rather than relying exclusively on additional borrowing. It would also potentially demonstrate how completed infrastructure can be converted into long-term financing capacity.
The Beitbridge–Harare corridor is strategically important because it forms part of Zimbabwe’s principal north-south trade route, connecting the country to South Africa and providing a major transport artery for regional commerce.
Batoka Gorge seeks financing breakthrough
Another major project on the Government’s radar is the Batoka Gorge Hydroelectric Project, a joint Zimbabwe-Zambia development that has long been viewed as one of the region’s most important untapped power-generation opportunities.
Zimbabwe is considering securing NDB financing for its estimated US$150 million contribution to the project.
The proposed development would significantly increase regional electricity-generation capacity and could strengthen Zimbabwe’s position in the Southern African regional power market.
For Zimbabwe, participation in Batoka would also represent an opportunity to secure a long-term strategic energy asset without having to finance the entire project from domestic resources.
Monorail proposal signals shift towards urban infrastructure
Government is also considering NDB financing for a proposed monorail linking Chitungwiza, Harare and Mt Hampden, reflecting growing pressure on Zimbabwe’s urban transport infrastructure.
The project is intended to provide a modern mass-transit alternative to road-based public transport while addressing congestion along one of the country’s busiest urban corridors.
If developed, the rail system could have wider economic implications by improving labour mobility, reducing commuting costs and connecting residential areas with major employment and commercial centres.
New financing channel for Zimbabwe
Professor Ncube said Government was still preparing its project portfolio for submission to the NDB, meaning the proposed projects remain at the pipeline and financing-preparation stage rather than representing approved loans.
However, Zimbabwe’s new borrowing status could materially expand the country’s financing options at a time when access to long-term development capital remains constrained by high debt levels, external arrears and limited fiscal space.
The NDB, established by Brazil, Russia, India, China and South Africa, has increasingly positioned itself as an alternative source of infrastructure finance for emerging markets, with an emphasis on transport, energy, water, urban development and other large-scale projects.
For Zimbabwe, the immediate significance of NDB membership may therefore extend beyond individual projects. It gives the country another institutional platform through which to structure commercially viable infrastructure projects, mobilise foreign capital and potentially attract additional private-sector investment.
The challenge will now be to convert the membership into a credible, bankable project pipeline. Zimbabwe will need to demonstrate that proposed projects have robust feasibility studies, reliable revenue models, transparent procurement arrangements and sufficient capacity to service the resulting debt.
If it succeeds, NDB membership could become an important component of Zimbabwe’s broader infrastructure-financing strategy, particularly as the country seeks to modernise its energy and transport networks while laying the foundations for renewed industrial growth.
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