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Zimbabwe Set for $600 Million Railway Overhaul as China Railways Eyes Expansion

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President Emmerson Mnangagwa recently held discussions with top executives from China Railways Group and Huawei, as both companies signaled plans to grow their presence in Zimbabwe.

Finance and Investment Promotion Minister, Professor Mthuli Ncube, hailed the talks as a significant step forward, particularly for the nation’s transport infrastructure. He described the potential collaboration as transformative for Zimbabwe’s railway network.

A proposed investment of approximately US$600 million has been set aside to overhaul and modernize the country’s railway system from end to end.

Meanwhile, Huawei is preparing to expand its local operations by introducing advanced technologies, including artificial intelligence, to upgrade Zimbabwe’s digital infrastructure.

Source – ZBC

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Floods ravage Mozambique, leaving widespread destruction

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Wilma Mavhengere

The floods in Mozambique have left a trail of devastation, with countless people left homeless, their lives shattered, and their futures uncertain. The raging waters have claimed lives, destroyed homes and swept away livelihoods, thereby leaving behind a landscape of despair.

More than 300,000 people have been displaced by flooding in a province in Mozambique, its governor said Monday. Authorities had already announced that around 40 percent of the Gaza province has been submerged by floodwater following weeks of torrential rain in parts of southern Africa.

Mozambican President Daniel Chapo has cancelled his trip to the World Economic Forum in Davos, Switzerland, because of the severe flooding impacting central and southern parts of the country,y that is according to the state-run daily newspaper Noticias.

Gaza Governor Margarida Mapandzene Chongo reported that roughly 327,000 people are now staying in dozens of temporary shelters such as schools and churches after being evacuated from flooded and at‑risk areas in the southern province, which has a population of about 1.4 million.

Humanitarian groups warned earlier this month that about 200,000 people could be hit by the extreme weather in Mozambique, but that figure has already been surpassed. Cabinet minister and government spokesperson Inocencio Impissa said nearly 600,000 people have been affected in Gaza and neighbouring Maputo provinces.

Communities across Mozambique are grappling with the aftermath of severe flooding as waters begin to recede, exposing the full scale of the destruction. Homes have been washed away, livelihoods destroyed and critical infrastructure damaged. For many residents, the days ahead will be marked by loss, uncertainty and the difficult task of rebuilding. Authorities and aid groups are assessing needs on the ground as affected families try to come to terms with the devastation left behind by the disaster.

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Government to Compensate Over 700 Former Commercial Farmers This Year

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The Government is set to compensate more than 700 former white commercial farmers whose land was acquired during the Fast-Track Land Reform Programme, as efforts intensify to resolve outstanding legacy issues linked to the historic land redistribution exercise.

Under the Global Compensation Deed (GCD)  an agreement between the State and representatives of former farm owners  Zimbabwe undertook to pay US$3,5 billion to approximately 3 500 former farmers as compensation for improvements made on expropriated land.

This year, about 740 former farmers are expected to receive payments, with the 2026 National Budget allocating US$10 million toward the programme as part of a phased settlement approach.

The compensation initiative forms a critical component of Zimbabwe’s arrears clearance and debt resolution strategy, which international financial institutions regard as a key reform requirement for restoring access to concessional funding, grants and debt relief.

Authorities say finalising compensation claims will help rebuild investor confidence, demonstrate respect for property rights and advance the country’s re-engagement agenda with global lenders such as the World Bank and the International Monetary Fund (IMF).

To ensure fiscal sustainability, Treasury has adopted a gradual payment framework that balances economic realities with the obligation to honour compensation commitments.

In line with the GCD, compensation applies strictly to improvements made on the land, including infrastructure, buildings, irrigation systems and equipment. No payment is made for the land itself, which remains vested in the State.

Addressing journalists during a question-and-answer session on the Land Tenure Title Deeds Programme in Harare on Tuesday, Permanent Secretary for Lands, Agriculture, Fisheries, Water and Rural Development, Professor Obert Jiri, said the compensation process has been ongoing and consistently supported through annual budget provisions.

“Compensation of former white commercial farmers is continuing. Each year, the national budget sets aside resources roughly 10 percent for this purpose, and Government has remained consistent in meeting this obligation over the past few years,” Prof Jiri said.

He added that Zimbabwe has received positive feedback from both domestic and international stakeholders for maintaining regular payments.

“There has been recognition from various countries and partners who have commended Government for honouring these commitments. The process is ongoing,” he said.

Treasury has confirmed that the compensation programme is embedded within the Roadmap for Arrears Clearance and Debt Resolution, which authorities view as essential for unlocking affordable financing, boosting investment and supporting economic recovery.

As at September 2025, compensation liabilities stood at US$3,191 billion, representing a significant portion of the country’s domestic debt.

Government maintains that settling these obligations is vital to improving Zimbabwe’s debt profile and strengthening re-engagement with the international community.

Beyond compensation, Prof Jiri said land tenure reforms are also being rolled out to improve agricultural productivity and provide greater security of tenure.

He revealed that unoccupied or abandoned farms, including those previously covered under Bilateral Investment Promotion and Protection Agreements (BIPPAs), are now eligible for title deeds under the ongoing reforms.

“Previously, abandoned farms would be reallocated to new beneficiaries. However, under the title deeds programme, unoccupied BIPPA farms can now be issued with title deeds to allow continued and productive use,” he said.

Prof Jiri further noted that white former commercial farmers who remained on their land after the land reform programme are also eligible for title deeds, a move aimed at promoting stability, safeguarding investment and sustaining agricultural output.

He said the combined impact of compensation payments and land tenure reforms would enhance confidence in Zimbabwe’s land administration system while consolidating the achievements of the land reform programme.

Compensation is being implemented in accordance with Section 72 of the Constitution, which provides that no compensation is payable for land acquired for public purposes, except for improvements made prior to acquisition.

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Chivhayo Blames Financing Challenges for Delays at Gairezi Hydro Project

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Businessman Wicknell Chivhayo has addressed growing concerns surrounding the stalled 30-megawatt Gairezi Hydro Power Project, attributing the delays to financing constraints rather than mismanagement or misuse of funds.

Responding to questions raised by Nyanga South Member of Parliament Supa Mandiwanzira, Chivhayo said the project’s slow progress had been widely misunderstood, particularly by communities that had anticipated immediate economic benefits from the development.

He acknowledged the frustration felt by residents in the area, many of whom had expected employment opportunities and increased economic activity once construction began.

“I fully understand the disappointment of the community,” Chivhayo said, noting that expectations had been high due to the project’s potential to create jobs and stimulate local development. “I share the frustration of those who were hoping the project would already be delivering tangible benefits.”

Chivhayo dismissed claims that the project stalled because of poor management or payments that had already been made, insisting that access to sustainable financing remained the primary obstacle.

He further clarified that the Gairezi Hydro Power tender was not awarded to him as an individual, but to an international consortium led by Bharat Heavy Electricals Limited (BHEL), a state-owned engineering company from India.

The consortium also includes Angelique International, with Intratrek Zimbabwe participating as the local contracting partner. According to Chivhayo, the consortium secured the project after emerging as the lowest compliant bidder, meeting all technical and financial requirements set out in the tender process.

He explained that such consortium-based arrangements are standard practice in large-scale infrastructure projects, particularly across Africa, where local firms often partner with established international companies to leverage their technical expertise, balance-sheet strength, and access to global financing.

“Large infrastructure projects of this nature rely heavily on the financial credibility and engineering capacity of international partners,” Chivhayo said. “This model is widely used across the continent and is essential for projects that require long-term funding and specialised technical skills.”

The Gairezi Hydro Power Project is viewed as a strategic investment capable of contributing to Zimbabwe’s renewable energy mix, easing pressure on the national grid and supporting economic growth in Manicaland Province.

Chivhayo said efforts were continuing to unlock funding and ensure the project moves forward, adding that transparency and engagement with both policymakers and local communities remained key to restoring confidence.

The project’s future progress will be closely watched as Zimbabwe continues to pursue alternative energy solutions to address persistent power shortages and promote sustainable development.

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