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Private equity firm Harith General Partners Pty Ltd and the Phembani Remgro Infrastructure Fund are buying shares in a company investing $ 296 million to modernize the Zimbabwe Beitbridge border, one of the busiest land border crossings in Africa.
Zimborders Mauritius has a 17.5-year concession to design, build and operate the public-private partnership project, with the possibility of a five-year extension.
The investment will be a critical step in unlocking trade between Zimbabwe and South Africa, as the Beitbridge border has been characterized by long wait times for trucks trying to cross, according to Harith CEO Sipho Makhubela.
“Beitbridge’s capacity constraints have had a stifling effect on economic activity, adding cost and risk to a vital trade channel,” he said Sunday. Harith also invests in other transport links on the continent, including South Africa’s Lanseria Airport and rail service provider Traxtion Africa.
Rehabilitation, construction and improvements will take place on the Zimbabwe side of the border. The nation’s economic crisis has caused underinvestment in critical infrastructure like Beitbridge, where some 25,000 people and more than 500 heavy trucks cross every 24 hours.
Zimbabwe’s border infrastructure was built at a time when far fewer people and less cargo were crossing the Limpopo River that separates it from South Africa. Obsolete equipment still used in vehicle checks, along with a large amount of documentation, often means delays for trucks heading north to the rest of the continent.
Among other updates, new investment through Zimborders will go towards the installation of automated queuing and payment systems to minimize human interaction and the risk of fraud and corruption.
It will also be spent on modern cargo scanning equipment for faster inspection and detection of contraband and dangerous cargo.
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