NRZ struggles to manage properties

 THE National Railways of Zimbabwe (NRZ) is losing potential revenue, estimated in tens of thousands of dollars, due to its inability to effectively control and manage its vast properties across the country.

The parastatal is struggling with the challenge of securing and leveraging its extensive real estate assets, which are currently underutilised or mismanaged.

The properties, scattered throughout the country represent a substantial potential revenue stream that NRZ has not been able to fully capitalise on.

The lack of control and proper management over these assets is impacting the organisation’s financial stability and its ability to invest in crucial railway infrastructure and operations.

Effective management and strategic utilisation of these assets could provide a significant boost to the parastatal’s revenue, helping to address its financial challenges.

NRZ is arguably the richest State-owned enterprise in the country in terms of immovable assets.

Last year NRZ formed an asset verification committee comprising its various departments to identify and verify assets after some of its properties were not being accounted for.

Briefing the Parliamentary Portfolio Committee on Transport and Infrastructural Development during a tour of the organisation’s properties in Victoria Falls last Friday, NRZ general manager Ms Respina Zinyanduko said they managed to recover several properties along the Gwanda railway line and four houses in Bulawayo.

In Victoria Falls, besides vast pieces of land and properties along the railway line, NRZ jointly owns the Victoria Falls Hotel and Victoria Falls Bridge with Zambia Railways through Emerged Railways Properties.

The NRZ also owns Landela Complex, a property that has three blocks that house several shops among other businesses in the tourism sector.

The property is one of the assets NRZ is struggling to repossess after leasing it out to Landela Safari Adventure (Pvt) Limited in 2007.

NRZ initially leased the property to Landela Safari and later amended it into a joint venture.

The lease and joint venture agreement expired last year but NRZ has been failing to repossess the property after Landela Safari owner, Mr Steward Cranswick took the matter to the High Court where it is still pending.

Landela Complex also runs Landela Lodge in Masue. In 2016, the company made headlines after the owners erected a fence on part of Chamabondo Forest in what is now being developed into Masue City by the Government.

Ms Zinyanduko told the Portfolio Committee that because of the dispute over the Landela Complex, NRZ did not renew the lease it entered with the safari company upon its expiry last November.

“The lease was converted into a joint venture and ever since the NRZ has not been paid. The joint venture agreement and lease expired in November last year and NRZ tried on different occasions to engage Landela who did not attend board meetings,” she said.

“We are going for arbitration, so this is one of the challenges we have.”
Ms Zinyanduko said given the issue is still before the courts, she could not give more details.

“We realised that NRZ has a lot of properties, and some of them are in the asset register, but could not account who exactly is on the asset. We formed a joint committee which has so far done the southern region and we have recovered quite a lot of properties,” she said.

“Some of them were in private hands for some time and we are glad that we have managed to recover a lot of them in Gwanda line and also Bulawayo where we recovered four houses that were leased a long time ago by employees who then retired and never surrendered the assets.”

NRZ had a similar agreement with Hyde Safaries at Kennedy Annex Farm, which it has since revised and it is now getting rentals.

“These are lessons learnt that where we don’t have control it doesn’t work. Going forward we are amending these joint ventures,” Ms Zinyanduko told the committee.

The Portfolio Committee chairperson, Cde Knowledge Kaitano expressed concern over the development.

“We have realised that NRZ has vast assets which can provide a lot of capital injection that is required to revitalise the company. However, we have been told that certain properties have been rented for over 25 years by individuals who are getting rentals from properties which are not theirs,” he said.

“We have urged NRZ to ensure that they recover all the assets because they are a good source of capital injection into the revitalisation of the company. We want NRZ to be an enabler of economic activity that contributes to the growth of our economy, development of our people and realisation of an upper-middle -income by 2030.”

Source: NRZ struggles to manage properties (25th July 2024)

New Report raises questions over management of Victoria Falls World Heritage Site

A new independent report calls for strict action on illegitimate tourism developments within the Victoria Falls World Heritage Site and highlights serious questions over the wider management of Site in advance of the 46th Session of the World Heritage Committee, to be held in New Delhi, India over 21-31 July 2024.

The 2024 Victoria Falls State of Development Report (3.8mb), produced by Keep Victoria Falls Wild, calls for action on tourism developments which have been constructed in the 'no new development zone' (known as the 'High Ecologically Sensitive Zone' or HESZ) of the World Heritage Site in recent years and raises serious concerns over the management of the Site. 

"We recommend strong and specific action on recent developments in the HESZ, including the cancellation of approvals, removal of infrastructure and return of sites to their natural state (Baines Restaurant and Rock Pool); the cancellation of agreements relating to yet to be developed projects in the HESZ (Kandahar Camp and ‘Tree Lodges’ proposals); full review of existing developments within HESZ and cancellation of lease agreements if found to be in breach of Park or other regulations (Victoria Falls River Lodge, Old Drift Lodge, Zambezi Camp 'redevelopmets' and the Lookout Cafe). We also highlight what be believe are to be serious and significant shortcomings in the management and protection of the WHS HESZ relating to the River Jetty Site Section, Transport Corridor and Buffer Zone which we believe need to be addressed in the new Joint Integrated Management Plan process."

KVFW 2024 State of Development Report 

Read More

Download the Keep Victoria Falls Wild 2024 State of Development Report (3.8mb) 

Read more on all these issues and developments on the Keep Victoria Falls Wild website.

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Zimbabwe Park Authority release new Zambezi/Victoria Falls National Park General Management Plan

Keep Victoria Falls Wild, 6th July 2024. 

For immediate Release. No Embargo.

A new ten-year Zambezi/Victoria Falls National Park General Management Plan (2024-2034) was approved in April 2024 (ZPWMA, 2024). The Plan is publicly available on the Zimbabwe Parks and Wildlife Management Authority website (or direct download here [4.8mb]).

The Plan presents a new map showing a proposed revised WHS boundary and management zonation, due to be presented in the new Joint Integrated Management Plan (JIMP) for the Victoria Falls World Heritage Site (and which was due for submission to UNESCO by the end of June 2024).

Map showing proposed (amended) boundary and management zones for the Victoria Falls World Heritage Site. From 2024 Victoria Falls/Zambezi National Park Management Plan, p.22. (click image for larger view).

The map confirms upstream riverside fringe as being in the red zone Highly Ecologically Sensitive Zone (HESZ) which prevents all new development. This is a major win for our campaign against recent developments in this zone. For the last few years Park Authorities, and the Director-General himself, have been claiming this area was part of the Medium ESZ (MESZ) and which therefore allowed suitable tourism development - as evidenced in the Director General's letter of approval for the Baines Riverside Restaurant development (ZPWMA, June 2021a, download here) which states:

"The construction of a semi-permanent restaurant is provided for in the Joint Integrated Management Plan since the proposed development area is under the Medium Ecologically Sensitive Zone." (ZPWMA, June 2021)

Dr F U Mangwanya’s letter refers to the 2016 JIMP document in support of this claim. The 2016 JIMP map and text is highly ambiguous (perhaps deliberately so) but, on close inspection, both show the area of the riverine fringe above the Falls as within the red/HESZ zone (KVFW, 2023a; 2023b). The letter also refers to an internally produced supporting document (ZPWMA, June 2021b, download here) which also incorrectly assumes the area to be within the MESZ, as does the supporting EIA document for the development.

There needs to be a thorough investigation into how such a misinterpretation can have been made without being recognised and prevented by other parties (they appear to have all accepted the developers claim that the site is within the MESZ). Steps need to be taken to ensure that such errors of judgement cannot be made again and that ‘no development zones’ remain exactly that, permanently, and not just for the duration of short or medium term management plans or until someone in a position of authority changes their mind (or makes a mistake).

Now that all parties agree that the area is in fact within the HESZ 'no new development' zone it leaves the obvious question as to what is to be done about the recent construction of the Baines Riverside Restaurant (opened in mid-2023) and Zambezi Drive 'Rock Pool' bar (also established during 2023) developments along the riverine fringe immediately upstream the Falls, and the proposed Riverside Tree Lodge and Kandahar Camp developments where concession agreements have been again been approved by Parks in areas supposedly protected under the HESZ and where development has yet to begin on the ground.

The area of all these developments is identified in the 2007 and 2016 JIMP documents as being within the HESZ. According to the new map, and presumably new JIMP, the area remains in the HESZ. As these development concessions have been awarded in contravention of the agreed protections for the Site we believe the lease agreements made by the Park Authority with the relevent third parties must be immediately terminated, all trace of recent developments, where present, removed and the areas returned to their previous natural state. Anything short of this will be a mockery of National Park regulations, legal protections and World Heritage Site status.

It also raises question marks over longer standing developments such as the Victoria Falls River Lodge and Old Drift Lodge, both of which were constructed within the Zambezi National Park since this area was first identified as being within the WHS HESZ in the 2007 JIMP (opened in 2012 and 2018 respectively). The Victoria Falls River Lodge in particular has seen extensive subsequent expansion. These developments need to be reviewed against their original EIA approvals and concession agreements and current lease periods must not renewed if they are found to have exceeded or breeched these terms. No further expansion or development should be allowed. If leases are suspended sites must be returned to previous natural state.

There is also the issue of the recent redevelopment of the Zambezi National Park Zambezi Camp Lodges, recently undertaken in partnership with the operators of the Victoria Falls River Lodge, Zambezi Crescent. The redevelopment has seen the construction of new infrastructure along the riverbank, again in contravention of the HESZ protected status of this area. Full disclosure of these developments are needed and impacts reviewed. If the developments are found to be breech of Park or other regulations approval should be withdrawn and action taken to remove offending structures.

And downstream from the Falls there is the Wild Horizons Lookout Cafe, again within what is now confirmed as the HESZ and which has seen significant expansion of its development footprint in recent years. Elements of this development appear to also infringe National Park regulations on permitted development and use of permanent materials. Again consideration should be given to terminating lease concession at end of current period if this is found to be the case and the site returned to its natural state.

Dr F U Mangwanya, the Director-General of the Zimbabwe Parks and Wildlife Management Authority, needs to explain how such a fundamental and significant mistake as mis-identifying part of the HESZ could be made and take immediate action to rectify the impacts of this error. Dr Mangwanya, who describes himself on his Linkedin profile as a 'passionate conservationist,' has overseen more damage to the natural environment of the immediate Falls environment than has been witnessed in the last fifty, if not hundred, years. His name will now be recorded as the man who approved tourism developments within the Falls highly protected 'no new development' area. And once he has rectified the damage done during his tenure his should reconsider his position.

References

State Parties (2007) 2007-2012 Victoria Falls/Mosi-oa-Tunya Joint Integrated Management Plan (external download, opens in a new window).

State Parties (2016) 2016 Victoria Falls/Mosi-oa-Tunya State of Conservation Report and 2016-2021 Victoria Falls/Mosi-oa-Tunya Joint Integrated Management Plan (external download, opens in a new window).

Zimbabwe Parks and Wildlife Management Authority (June 2021a) Application (former Railway Water-Pump Station, Victoria Falls Long Term Lease. Letter from Dr F U Mangwanya, Director-General, ZPWMA, 22 June 2021 (jpg download [312 kb], opens in a new window).

Zimbabwe Parks and Wildlife Management Authority (June 2021b) Guidelines for the Establishment of New Semi-Permanent Structures in the Mosi-os-Tunya/Victoria Falls World Heritage Property (pdf download [2.88 mb], opens in a new window).

Zimbabwe Parks and Wildlife Management Authority (2024) Zambezi/Victoria Falls National Park General Management Plan (2024-2034). April 2024. (pdf download [8mb], opens in a new window)

Zimbabwe building stadium near scenic Victoria Falls; project funded by ICC

 Emmerson Mnangagwa, the President of Zimbabwe, recently laid the foundation stone for an ambitious cricket stadium near Victoria Falls, a tourist hotspot in the country. Once completed, the stadium will arguably become one of the most picturesque cricket venues in the world.

To be named the Mosi-oa-Tunya International Cricket Stadium, the 10,000-seater ground will host global events in 2026 and 2027. Zimbabwe Cricket (ZC) will co-host the Under-19 World Cup in 2026 with Namibia, while South Africa will join the two countries to stage the prestigious 2027 World Cup.

The Zimbabwean government has allocated 10 hectares of land for the project which, reportedly, will be funded by the International Cricket Council (ICC). The construction is expected to cost between $5 and $10 million, although the ICC has said that no extra funding will be provided for any specific project. The Victoria Falls Stadium will be a multi-sport facility that will reportedly see, rugby, hockey and netball also played there.

"The location of this stadium in this city will undoubtedly contribute to the speedy attainment of tourism sector targets and towards our national development aspirations as outlined in the National Development Strategy Vision 2030," President Mnangagwa said while laying the foundation stone.

"As Zimbabwe Cricket, we are the first to admit that our stadiums are no longer adequate, we had to lock out some fans during the 2023 World Cup Qualifiers but that's not what we want to do. We want to have as many people to access our grounds and we want their experience to be awesome when they come into the grounds.

"So work is already underway and as you are aware, we will be co-hosting the 2027 men's World Cup and before that, we are also hosting the next edition of the Under 19 World Cup together with Namibia, so these are massive tournaments and we are working to improve our facilities for more global tournaments," ZC media and communication manager Darlington Majonga was quoted in the Coliseum website as saying.

"Work is progressing very well, a lot of earthmoving has been happening. The levelling of the academy pitch and the main pitch is progressing very well. The facility has been fenced, a site establishment has also been done, boreholes have been drilled, and a water reservoir has also been established. There is good progress so far, we are impressed by what is on the ground," ZC managing director Givemore Makoni was quoted in an FB post recently.

Zimbabwean cricket is currently at its lowest point, having failed to qualify for consecutive 50-over World Cups in 2019 and 2023. They also missed out on the recent T20 World Cup in the US and West Indies, having been upended by Uganda, a lesser-known cricketing nation.

Source: Zimbabwe building stadium near scenic Victoria Falls; project funded by ICC (03/07/2024)