KEY POINTS
- Zimbabwe has secured funding for the Chirundu border upgrade.
- The project is expected to reduce freight delays and congestion.
- The border modernisation is estimated at $66.8 million.
Zimbabwe has secured funding for the modernisation of the Chirundu border crossing with Zambia, clearing the way for construction work on a key trade route linking the central African copperbelt with ports in southern Africa.
The agreement involves the Zimbabwean government and private-sector partners under the Chirundu Border Consortium, according to the country’s Transport and Infrastructure Development Ministry.
The Chirundu border is a major gateway on the North-South Corridor, a trade route connecting the Zambia-DRC Copperbelt with ports in South Africa and Mozambique.
The crossing handles large volumes of freight, including copper, cobalt, fuel, mining equipment, mining reagents, fertilisers and other traded goods.
However, trucks using the border frequently face bottlenecks and lengthy delays, creating additional costs for companies moving goods across the region.
The modernisation project is expected to replace ageing infrastructure and introduce more advanced operational and processing systems to improve the movement of cargo and reduce congestion.
Border plays key role in regional trade
Chirundu was inaugurated in 2009 as Africa’s first one-stop border post and has since become an important transit point for regional commerce.
Its location makes it particularly significant for the mining industry, with mineral-producing areas in Zambia and the Democratic Republic of Congo relying on southern African transport routes to reach ports and international markets.
Improving the border’s capacity could therefore support the movement of minerals and other commodities along the North-South Corridor.
$66.8m project to be privately operated
The ministry did not disclose the final investment value of the public-private partnership.
Zimbabwe’s Cabinet had previously estimated the project at $66.8 million, with private investors expected to operate the facility for 20 years under a concession agreement.
Safaga International is leading the project after previously overseeing the $300-million upgrade of Zimbabwe’s Beitbridge border with South Africa.
South Africa’s Strategic Partners Group is also participating as a strategic investor.
Standard Bank has been appointed lead debt arranger and senior lender for the project.
The funding agreement between the government and the Chirundu Border Consortium removes a key hurdle to the start of construction.
The planned improvements are aimed at creating a more efficient border operation and reducing the delays that currently affect trucks and other freight moving between the Copperbelt and southern African ports.
For mining companies and other businesses dependent on regional trade corridors, a more efficient Chirundu crossing could improve the movement of commodities, equipment and industrial supplies across the region.
