ZINARA Finally Clears US$206m Plumtree–Mutare Highway Debt

By Business Reporter

Zimbabwe’s road authority has finally cleared a US$206 million loan used to rehabilitate and upgrade the Plumtree–Bulawayo–Harare–Mutare highway, ending a 15-year debt burden that had constrained its ability to secure funding for other infrastructure projects.

The Zimbabwe National Road Administration (ZINARA) confirmed that its final payment to the Development Bank of Southern Africa (DBSA) was made on September 30, 2026.

ZINARA board chairman George Manyaya announced the development at the authority’s 10th annual general meeting in Harare, saying the organisation no longer owed the South African development bank.

The loan was secured in 2011 to finance rehabilitation and upgrading works along the approximately 860-kilometre highway linking Plumtree, Bulawayo, Harare and Mutare.

The loan became a major financial burden after ZINARA struggled to meet its repayment obligations, partly because of Zimbabwe’s foreign currency shortages.

The original agreement required repayments to be funded through tollgate revenue. However, payment difficulties resulted in accumulated arrears and additional interest costs.

ZINARA subsequently negotiated revised terms with DBSA, extending the repayment period and reducing the interest rate.

More than US$50 million was reportedly still outstanding when the current board took office in December 2021.

Manyaya said clearing the debt had been a priority because the outstanding obligation was limiting the authority’s capacity to obtain funding for other road infrastructure projects.

Governance under scrutiny

ZINARA has faced years of scrutiny over financial management, with previous audits raising concerns about expenditure by senior officials and the use of public funds.

Parliament’s Public Accounts Committee repeatedly questioned the authority over its financial affairs and handling of the DBSA loan.

Committee chairperson Caston Matewu said corporate governance at ZINARA had improved significantly compared with previous years, when serious financial management concerns were identified through a forensic audit.

The clearance of the debt marks a significant financial milestone for ZINARA, which collects toll fees, vehicle licensing charges, fuel levies and other road-related revenue.

The development is expected to strengthen the authority’s position as it seeks financing for future infrastructure projects.

However, motorists continue to raise concerns about potholes, deteriorating highways and poor road conditions across Zimbabwe, despite paying toll fees and vehicle licensing charges.

With the DBSA obligation now settled, attention will turn to whether ZINARA can channel more resources towards road maintenance and rehabilitation while ensuring that any new borrowing is transparent, affordable and directed towards clearly defined infrastructure projects.