It's heartening to note that Government has finally approved the National Railways of Zimbabwe (NRZ) deal, even though after some worrying hiccups. Had it been allowed to flounder and collapse in the same manner the Ziscosteel-Essar deal fell through, especially after such an elaborate tender process overseen arguably by a blockbuster team consisting of different teams from different Government departments, this would have sent negative signals to investment capitals.
As is often said by investors, capital is a coward. A healthy NRZ, as a key economic enabler, has a positive impact on multiple sectors in the economy. Quite tellingly, an efficient and effective rail transport system, which is ordinarily traditionally cheaper than road, will not only relieve pressure on an already burdened local road transport network, but it will be able to drive down the cost of some raw materials used in industry.
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