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Zimborders Consortium secures $296mn funding to upgrade Beitbridge border post
The Zimborders Consortium has secured $296 million for the upgrade of the Beitbridge border post between Zimbabwe and South Africa. This is a key national project and it is integral to Zimbabwe’s economic and social development goals. The Zimborders Consortium CEO, Francois Diedrechsen joins CNBC Africa for more.
Fri, 27 Nov 2020 15:43:07 GMT
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AI Generated Summary
- The Zimborders Consortium secures $296 million for the upgrade of the Beitbridge border post, signaling a significant boost to trade and economic development.
- The project involves a comprehensive scope of work, including infrastructure enhancements, social development initiatives, and the incorporation of advanced ICT components.
- Revenue generated through toll charges on commercial vehicles will be used to repay the project's debt over a 17 and a half year period, ensuring financial sustainability.
The Zimborders Consortium has recently secured a whopping $296 million for the upgrade of the Beitbridge border post, which serves as a crucial point of entry between Zimbabwe and South Africa. This massive investment is set to have a significant positive impact on trade and economic development in the region, marking a pivotal moment in Zimbabwe's journey towards achieving its social and economic goals.
The consortium, spearheaded by Francois Diedrechsen and Glenn Cohn, consists of equity investors such as Herith Wung and Bavani Remgrove, as well as local stakeholders under the banner of Carmack Nolly. These key players have contributed substantial risk equity to the project, demonstrating their commitment to its success.
In addition to the equity funding, the project is backed by around 25 million rand of debt provided by major South African banks and two international development finance institutions. This financial support underscores the confidence in the venture's potential to transform the Beitbridge border post into a modern and efficient gateway for trade and travel.
The scope of work for the revamp is extensive, encompassing both infrastructure upgrades and social development projects. The construction phase, led by the South African construction group Robex, is expected to create job opportunities for nearly 400 individuals over the next 24 months. The infrastructural improvements include the construction of three new terminals, road enhancements, and various amenities for the town of Baprich. These developments are poised to elevate the Beitbridge border post to a world-class standard, reducing transit times and enhancing overall traffic flow.
One of the primary objectives of the upgrade is to mitigate the long delays and inefficiencies that have plagued the border crossing in the past. With some vehicles and individuals experiencing delays of up to a week, the need for a streamlined and efficient process is evident. While traffic patterns may fluctuate seasonally, the consortium aims to significantly decrease waiting times and improve the overall experience for travelers and businesses alike.
The incorporation of advanced ICT components into the border post's infrastructure is a forward-thinking move that promises to enhance security and efficiency. By digitizing key processes and implementing electronic checks and balances, the risk of corruption and illicit activities is expected to diminish. This technological leap positions the Beitbridge border post at the forefront of modern border management practices, setting a new standard for transparency and accountability.
To ensure the project's sustainability, a revenue stream will be established through toll charges on commercial vehicles crossing the border. This revenue will be utilized to repay the project's debt over a period of 17 and a half years, during which the consortium will manage and operate the upgraded facilities. By offering cost savings to transit traffic and implementing efficient toll collection systems, the Zimborders Consortium aims to achieve financial stability while delivering a high-quality service to its stakeholders.
Overall, the funding secured by the Zimborders Consortium represents a significant milestone in the efforts to modernize the Beitbridge border post. With a comprehensive plan in place and a strong team of investors and partners, the project is poised to drive economic growth, improve regional connectivity, and set new benchmarks for border infrastructure in Africa.
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