The government has extended the National Railways of Zimbabwe’s duty rebate on engine spares, special-purpose motor vehicles, and components for another two years as the railway seeks to restore its fleet and raise freight volumes.
Statutory Instrument 144 of 2026 extends the concession from August 4, 2026, to August 4, 2028, continuing a facility that has been renewed through previous rehabilitation cycles. The rebate covers qualifying imports required for the maintenance and refurbishment of NRZ equipment.
The extension comes as NRZ operates with limited rolling stock. Of its 168 locomotives, only 60 are recorded as operational, while 3,641 of its 7,153 wagons are stabled with defects. Only 108 of its 283 passenger coaches are in service.
“NRZ has identified refurbishment of 15 mainline locomotives and 13 shunting locomotives, together with the acquisition of 24 new mainline locomotives,” according to the government statement.
Infrastructure constraints have also affected operations, with about 10% of NRZ’s 2,760-kilometre network subject to speed restrictions. Its mainline Centralised Train Control system is no longer functioning, while vandalism has affected the 313-kilometre electrified section between Dabuka and Msasa.
The railway is targeting a significant increase in freight volumes this year after transporting 2.01 million tonnes in 2025. Its 2026 target of 3.01 million tonnes requires an increase of about one million tonnes, or nearly 50%.
“NRZ is targeting 3.01 million tonnes of freight in 2026, up from 2.01 million tonnes transported in 2025” the government statement reported.
NRZ expects revenue to increase from US$44.41 million last year to US$82 million in 2026 as freight volumes rise.
The railway’s turnaround programme includes the refurbishment of locomotives and 540 wagons, while its broader requirements include refurbishing 700 wagons and acquiring another 200.
“Approximately US$400 million is required in the short to medium term to restore operational capacity with the requirement covering rolling stock, track, signalling, telecommunications, workshops, plant and information technology,” the government statement said.
NRZ previously used leased locomotives and 200 wagons from South Africa’s Transnet in 2018 as an interim capacity measure. Freight transported between April and June that year increased 13.5% to 856,476 tonnes compared with the same period in 2017.
The latest rebate runs until August 2028 as NRZ seeks to improve fleet availability and increase freight volumes towards its 3.01 million-tonne target.