It would take several years and at least $15-billion to bring Zimbabwe’s basic infrastructure back to an acceptable level, said Frost & Sullivan environmental and building technologies research analyst Derrick Chikanga.

Speaking to Engineering News Online, he said the infrastructure in the country had endured a decade of neglect and was in urgent need of refurbishment, but funding for infrastructure development projects remained elusive as the country attempted to revive its economy.

The economic difficulties between 1999 and 2009 had a severe impact on the overall quality of the country’s infrastructure, with the transport and energy sectors worst hit.

A recent report by the African Development Bank (AfDB) noted that coverage and quality of infrastructure had fallen from being the best in the Southern African region in the early 1990s, to in line with that of its peer countries by 2009.

The AfDB estimated that focusing on infrastructure development could see the country gain 7% growth, with a jump in gross domestic product from $4.7-billion to $9.5-billion in the next eight years.

Further, by 2020, Zimbabwe could ensure that over 80% of the roads were in a good condition, 100% urban and 80% rural areas had sufficient water supply and sanitation coverage and about 15-million tons of road freight shifted onto rail.

The 391 000 km² country, with a population of 13-million, had seen signs of improvement in recent years as the government attempted to set aside 13% of its total yearly budget for infrastructure development projects.

However, the country faced a shortfall in its attempt to inject $430-million into infrastructure projects last year, further emphasising the fact that the country would not be able to develop sufficient infrastructure without external support, said Chikanga.

The government needed to partner with external funders to obtain strong financial assistance for projects, after which the country should be able to position itself to maintain and further improve on the assets once in place.

The formation of public–private partnerships would be critical in ensuring reasonable infrastructure development in the country, he commented.

Zimbabwe established the Zim-Fund in 2010 to lobby for development finance from major European and Asian countries and secured commitments of about $100-million from seven countries.

Further, several development banks, including the AfDB and the Development Bank of Southern Africa (DBSA), had directed funds to Zimbabwe.

ROAD AND RAIL
Meanwhile, Zimbabwe's 88 133 km road network was in a dire state as over ten-million tons of rail freight had shifted to roads over the past decade.

In the mid-1990s, the AfDB said, rail carried about 14-million tons of freight, but this fell to 2.7-million tons – 15% of the design capacity – in 2009, owing to limited available locomotive and rolling stock capacity, as well as deterioration in the quality of the rail network.

Chikanga commented that, currently, only about 50% to 60% of the rail network was currently functional and only 40% to 50% of the locomotives were operational.

The 3 109 km rail network, which was supposed to be the backbone of the country’s economy, was expected to take about $4.5-billion to revamp over the next ten years – excluding locomotives and wagons.

Earlier reports indicated that $200-million was required for road maintenance in 2012, but only $35-million was allocated, while only $209-million was set aside for a $2-billion road rehabilitation programme.

That development banks, such as the DBSA or AfDB, were increasingly looking to Zimbabwe for infrastructure development projects, was a positive sign, Chikanga commented.

Last year, the DBSA had granted a R1.4-billion loan to Infralink, a 70:30 joint venture between the Zimbabwe National Road Administration and South Africa-based construction firm Group Five, for the rehabilitation and implementation of tolling on a 801 km national road network linking Harare and Bulawayo, as well as Mutare, near the Mozambique border, and Plumtree, on the Botswana border.

Last week, the Department of Roads in Zimbabwe commissioned Royal HaskoningDHV to undertake a feasibility study determining the viability of construction and tolling to improve the road between Harare and the Beitbridge border post.

The cost of rehabilitating and improving the 580-km-long single carriageway was estimated to be in excess of $600-million.

ENERGY
Meanwhile, the development of Zimbabwe’s energy sector had been hampered as uncertainty surrounding the country’s 51% in-local-hands indigenisation legislation restricted investment.

Chikanga said there was no clear indication of how the legislation would be enforced and how it would apply to energy producers.

Many of the current licensed independent power producers, which were expected to play a key role in increasing the country's energy generation capacity, had halted many projects until this became clear.

The indigenisation law, while finding its feet – with difficulty – in the mining sector, created uncertainty in the energy sector, he said.

The past few months have seen TSX- and Aim-listed Caledonia Mining’s Zimbabwe-based Blanket gold mine, as well as Anglo American Platinum’s Unki mine and Impala Platinum’s Zimbabwe subsidiary Zimplats, concluding indigenisation deals with the Zimbabwe Ministry of Youth Development, Indigenisation and Empowerment.

Mining Weekly earlier reported that the Zimbabwe Investment Authority recorded a fall in approved new investments in all industries, falling to $930-million in 2012, from $6.6-billion in 2011, on the back of uncertainty arising from the indigenisation programme.

Zimbabwe had approved 172 projects in 2012, a decrease from the 227 projects approved in 2011.