Zinara ends 15-year DBSA debt burden
STAFF WRITER
The Zimbabwe National Road Administration (Zinara) has fully repaid a US$206m loan from the Development Bank of Southern Africa (DBSA), ending a 15-year debt obligation and potentially opening the door to fresh infrastructure financing.
The final payment of US$1.3m was made on September 30, settling the facility that funded the rehabilitation of the 800km Plumtree-Bulawayo-Harare-Mutare highway, one of Zimbabwe’s most important transport corridors.
Secured in October 2011, the loan financed construction works managed by Infralink, a joint venture between Zinara and South African construction firm Group Five International. The highway links Zimbabwe’s western border at Plumtree with Mutare in the east, supporting domestic commerce and regional trade.
Official data obtained from Zinara shows that the authority had been paying US$2.3m monthly towards the facility since 2021, as it worked to extinguish the external debt.
The repayment marks a significant milestone for the road administrator, which says settling the obligation demonstrates Zimbabwe’s capacity to honour its financial commitments and strengthens its prospects of securing new funding from international lenders.
Zinara board chairman Dr George Manyaya confirmed the repayment at the organisation’s annual general meeting in Harare on Tuesday, saying the country no longer owed the South African development financier.
“One of our targets was to clear our external debt to DBSA. As of September 30, Government does not owe DBSA anymore,” Manyaya said.
“This unlocks a lot of investments. It shows Zimbabwe is a credible candidate to get such facilities.”
The repayment comes as Zimbabwe seeks to improve its standing with international financiers and mobilise capital for infrastructure development, with roads remaining central to the country’s ambitions to deepen regional trade and achieve its Vision 2030 economic transformation agenda.
Zinara chief executive Nkosinathi Ncube said the authority collected the equivalent of US$460m in 2025, which was distributed to road authorities responsible for maintaining and developing the national road network.
The beneficiaries include the Department of Roads under the Ministry of Transport and Infrastructural Development, local authorities and the Rural Infrastructure Development Agency.
“We collected an equivalent of US$460m. We then disbursed most of the funds to our road authorities, which are four or five,” Ncube said.
Transport and Infrastructural Development Minister Felix Mhona, represented by director of strategic policy planning, monitoring and evaluation Takura Vengesa, commended Zinara’s efforts to modernise tollgate operations and improve traffic flow.
He cited the expansion of tollgate lanes and the introduction of electronic tag services as important measures to reduce congestion and improve motorists’ experience, urging the authority to continue investing in digital solutions.
The Parliamentary Portfolio Committee on Public Accounts chairperson Caston Matewu praised Zinara’s financial management reforms, describing the organisation as one of the most transformed public entities in terms of governance and accountability.
His remarks mark a significant shift from earlier years, when Zinara faced sustained parliamentary scrutiny over its financial management.
Matewu also raised the issue of the authority’s 2.5% administration fee, arguing that its expanding operations and investment in technology warranted a review of the legislative framework governing the charge.
He urged Zinara to submit formal proposals to Parliament ahead of next month’s consideration of the Finance Bill, which could provide an opportunity to amend the relevant provisions of the Roads Act.
“Every time we would call Zinara to Parliament, and this was every single year, even MPs would go to a stage where we were now uncomfortable to have Zinara around, because of the state of their finances,” Matewu said.
“But anyway, we are here now. I just wanted to comment on that 2.5% that you alluded to.”
He said the authority had expanded significantly, with improvements in information and communications technology, electronic tolling and operational capacity strengthening the case for legislative changes.
Matewu said Zinara should put its proposals in writing so that Parliament could consider incorporating the amendments into the Finance Bill during the 2027 national budget process.
Chairperson of the Parliamentary Portfolio Committee on Transport and Infrastructure Development Tawanda Karikoga also commended Zinara’s contribution to national road development, reaffirming Parliament’s readiness to support reforms that strengthen the authority’s capacity to deliver on its mandate.
Karikoga described the organisation’s institutional transformation as an example of public sector reform, pointing to consecutive unqualified audit opinions as evidence of improvements in financial accountability and governance.
“The institutional transformation that we are witnessing today is a shining example of public sector reform,” he said.
“This is a huge milestone, with consecutive unqualified clean audit opinions. This is a historic feat, for it proves that principles of transparency, financial accountability and the proper management of public funds are now firmly embedded in your operational culture.”
As Zimbabwe looks towards implementing the National Development Strategy 2, Karikoga said Zinara should prioritise efficient disbursement of funds to road authorities while ensuring that funding is matched by adequate institutional capacity.
He commended the authority for achieving full disbursement rates to several local authorities, but stressed the need to strengthen their capacity to translate allocations into completed road projects.
The repayment of the DBSA facility removes a longstanding external financial obligation from Zinara’s books. The extent to which this will translate into new financing, however, will depend on the terms of future facilities and the authority’s ability to sustain its financial and governance reforms.
