STRIKE action at the beleaguered National Railways of Zimbabwe (NRZ) could undermine progress in the procurement of a US$460 million loan from the Development Bank of Southern Africa (DBSA) meant to revamp the country’s dilapidated rail network infrastructure, the Financial Gazette can report.
Earlier this month, workers from the NRZ across the country went on strike in protest over unpaid salaries amounting to US$55 million accrued over a 10-month period. Transport and Infrastructure Development Minister, Obert Mpofu said the NRZ strike was “unsettling” foreign investors. “The investor watches for such things and these trigger panic… discussions are still ongoing and there is need for patience on the part of workers until the deal has been concluded,” he said.
Mpofu said discussions with the DBSA were continuing but indicated he wanted them finalised soon. “They (talks) are progressing slowly and we would like them to (be concluded),” said Mpofu. The DBSA loan is expected to provide a facelift to the rail network in the country, which Mpofu said was in desperate need of rail signals, new locomotives and modern equipment to provide recovery of the rail system.
“The railway system is the lifeblood of the economy and its revival is also the revival of the Bulawayo economy as well,” said Mpofu. Mpofu said China was also closely following the DBSA loan discussions. China also wants to fund the rehabilitation of the NRZ. During President Robert Mugabe’s visit to China last month, the NRZ came under discussion during deliberations between the two countries.
The NRZ is tottering on the brink of collapse, weighed down by debts and obsolete equipment. The company is in need of capital injection running into millions of dollars.
Shadreck Mutakura, president of the Railway Artisans Union, said the strike action was meant to highlight that things were not well. “There is serious disgruntlement because of poor working conditions, poor infrastructure and non-payment of salaries. A lot has been said in the past, but the truth is the NRZ is now totally malfunctioning,” Mutakura said.
newsdesk@fingaz.co.zw