Zimbabwe’s upcoming accession to rolling stock financing agreement opens ‘many doors’

ZIMBABWE: The government has approved the country’s accession to an international treaty which aims to make it easier and cheaper for the private sector to finance rolling stock. The Luxembourg Rail Protocol to the Cape Town Convention on International Interests in Mobile Equipment provides an internationally recognised legal framework for securing creditors’ rights over rolling stock, with the aim of encouraging private sector financing, reducing financing costs and providing greater legal certainty for investors and operators.

Speaking at the SARA Rail conference in Johannesburg on October 20, Deputy Minister of Transport & Infrastructure Development Joshua Sacco confirmed that Zimbabwe’s accession to the protocol had been approved by parliament and the president, and the country is preparing to formally deposit its instrument of accession in Roma.

Sacco said this ’opens us many doors, many opportunities, de-risking investments in rail’.

The Rail Working Group which works to facilitate the implementation of the protocol said accession could help Zimbabwe access new sources of capital to support the modernisation and expansion of its rail fleet, while contributing to stronger regional connectivity.

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