HARARE, June 24 – Zimbabwe is exploring resource-backed financing agreements with China to fund major road and railway infrastructure projects, as the government seeks new ways to modernize its transport network and unlock economic growth.
Finance Minister Mthuli Ncube said discussions have begun with China Railway on financing structures that would use future revenues from the country’s natural resources to repay loans tied to infrastructure development.
The discussions took place on the sidelines of the World Economic Forum Annual Meeting of the New Champions in Dalian, China.
Under the proposed model, Zimbabwe would pledge future income generated from mineral resources to support financing for specific road and railway projects.
“We spoke to them about resource-linked debt instruments that we want to explore going forward to support our infrastructure development, especially roads and rail,” Ncube said.
The finance minister explained that the government would determine which transport projects to prioritize, estimate expected toll revenues and identify any funding gap that could be covered through mineral-backed investment arrangements.
Zimbabwe, Africa’s largest lithium producer, possesses significant deposits of lithium, gold, platinum and other strategic minerals. However, years of economic challenges and underinvestment have left much of its transport infrastructure in poor condition.
According to the African Development Bank, Zimbabwe requires approximately $34 billion to modernize its transport and logistics infrastructure.
Reviving the country’s railway system has become increasingly important as mining activity expands, particularly for transporting minerals to export markets.
The proposed financing model mirrors similar resource-backed infrastructure agreements elsewhere on the continent, including the Democratic Republic of Congo’s Sicomines partnership with Chinese companies.
Separately, Ncube confirmed that Zimbabwe will proceed with its planned ban on lithium concentrate exports from January 2027 despite calls from mining companies for a delay.
The policy forms part of the government’s broader strategy to increase domestic value addition by processing minerals locally before export.
Chinese companies have invested more than $2 billion in Zimbabwe’s lithium industry since 2021, making the country an increasingly important supplier within the global electric vehicle battery supply chain.
Ncube said the industry is expected to process lithium concentrates domestically through new lithium sulphate processing facilities, including a recently completed plant developed by Zhejiang Huayou Cobalt and another facility under construction at Sinomine Resource Group’s Bikita mine.
The government’s twin strategy of expanding infrastructure investment while promoting domestic mineral processing reflects Zimbabwe’s efforts to capture greater economic value from its natural resources and strengthen long-term industrial development.
