TREASURY Secretary George Guvamatanga laid bare the financial challenges plaguing Zimbabwe’s major highway projects while introducing a novel funding strategy to ease the burden.
Guvamatanga detailed the costs and debts tied to the Harare–Beitbridge and Plumtree–Mutare highways, emphasising the need for innovative solutions to sustain infrastructure development.
The Harare–Beitbridge Highway, crucial for regional trade, has consumed US$600 million of its US$800 million budget, averaging US$1.4 million per kilometre.
“We’ve made significant progress, but contractors are still owed US$100 million for work already done, which we must address urgently,” Guvamatanga said.
This outstanding debt underscores the financial strain impacting the project’s timeline.
The Plumtree–Mutare Highway, initially funded in 2011 with a US$206 million loan from the Development Bank of Southern Africa, faced setbacks after Zimbabwe’s default.
“Penalties ballooned the debt to US$350 million, but through restructuring, we’ve reduced it to about US$30 million,” Guvamatanga said.
Clearing this balance is critical to restoring Zimbabwe’s fiscal credibility.
Looking ahead, the government plans to adopt “asset recycling,” a model championed by Africa50, the African Development Bank’s infrastructure arm.
This strategy involves constructing infrastructure and leasing it to private operators to raise capital for new projects.
“Asset recycling is a game-changer. It allows us to fund development sustainably without overstraining public finances,” Guvamatanga said.—Hurumende
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