Zimbabwe said to have cancelled huge deal involving Transnet
Zimbabwe’s cabinet has apparently cancelled a $400m (R5.3bn) tender awarded to a joint venture between Transnet and the Diaspora Investment and Development Group (DIDG), to revive the National Railways of Zimbabwe (NRZ). Transport minister Jorum Gumbo was quoted by a state-controlled weekly newspaper on Sunday as saying the deal "was not good for the country", and that the cabinet had made a decision to annul it. "The NRZ deal went to Cabinet and was rejected … the deal didn’t go through. When it was assessed, it was found out that it was not good for the country," he said, without giving specifics about the government’s reservations. However, knowledgeable sources familiar with the deal said cabinet questioned the financial and technical capacity of the joint venture to effect a turnaround at the ailing parastatal, amid suggestions that cabinet prefers a Chinese firm to be awarded the lucrative tender. In August, Business Day reported on how eyebrows were raised in Harare’s politic...
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