HARARE – ZB Financial Holdings says it has so far raised over $60 million under the Emergency Road Rehabilitation Fund (ERRF).
The financial services provider was retained by the Zimbabwe National Road Administration (ZINARA) as lead advisor for the ERRF.
“Following the successful mobilisation of $105 million under the ERRF for the Zimbabwe National Road Administration in 2017, the group has been retained to raise a further $150 million.
“Over $60 million has already been mobilised,” said ZBFH chief executive officer Ron Mutandagayi.
The ongoing Emergency Road Rehabilitation Programme, which is being spearheaded by Government through ZINARA has resulted in significant improvement in the country’s road infrastructure.
The ERRP is a Government programme that was initiated in order to rehabilitate the country’s road network that had been extensively damaged during the last rain season.
Phase one of the ERRP, which commenced on March 12 last year, prioritised preservation of the road infrastructure from further deterioration and safe passage for travellers.
Phase two of the programme is focusing on major rehabilitation works, reconstruction of damaged bridges including preventive periodic maintenance works and rehabilitation of failed sections of the road network.
According to the African Development Bank (AfDB)’s flagship study on Zimbabwe’s current state of infrastructure – the ‘Infrastructure and Growth in Zimbabwe Report’ – which was released in 2011, of the country’s total road network of nearly 90,000 kilometres, the proportion in fair to good condition has declined from 73 percent in 1995 to only 60 percent.
An additional 12,800 kilometres was re-classified to ‘poor condition’, requiring complete rehabilitation at a cost of about $1, 1 billion.
Economists contend that the present state of infrastructure in the country, which has declined due to limited investment and lack of maintenance, is one of the most significant constraints to set economic growth targets.
Poor infrastructure has largely precluded foreign direct investment (FDI) flows into Zimbabwe, especially as it drives up the cost of doing business.