US$88 million Trabablas Interchange sparks “looting” claims as loan matures

HARARE – The US$88 million Trabablas Interchange and Divergence Routes Road Infrastructure Project, officially commissioned last Friday by President Emmerson Mnangagwa, is facing intense public scrutiny over its escalating costs and alleged financial irregularities.

The project, funded by an US$88 million loan from Fossil Mines (Private) Limited and augmented by allocations from the International Monetary Fund’s (IMF) Special Drawing Rights (SDRs), has sparked widespread debate regarding its value for money and transparency.

The loan agreement with Fossil Mines, formalized on December 6, 2021, under the Public Debt Management Act [Chapter 22:21], bears an interest rate of LIBOR plus 5% per annum and is set to mature this week, on June 6, 2025.

A 9-month grace period was granted on the principal amount, with Fossil Mines directly overseeing and disbursing project funds.

Concerns have, however, been raised that the US$88 million cost for the Trabablas Interchange is significantly inflated, reportedly more than double the regional market price for comparable or larger infrastructure projects.

This has led to public skepticism regarding the government’s justification for the project’s expenditure.

Investigative journalist Hopewell Chin’ono has brought to light several critical points, alleging a pattern of financial manipulation.

According to Chin’ono, the interchange, which he sarcastically renames “Trabablas” (meaning “nonsense” in Spanish), was originally designed in South Africa with an initial cost estimate of US$42 million, which included compensation for affected landowners.

Chin’ono has claimed that the cost was subsequently inflated to US$88 million. He further pointed to a 2023 government gazette declaring the funding as a loan from Fossil Mines, a company associated with Kudakwashe Tagwirei and run by his ally Obey Chimuka.

Chin’ono questions the unusually high interest rate of LIBOR plus 5% for a sovereign loan and highlights that LIBOR was officially discontinued in 2023, making its inclusion in a 2021 loan deal highly questionable.

Chin’ono has alleged that funds from the IMF’s Special Drawing Rights (SDRs), received by Zimbabwe in 2021, were also allocated to the Trabablas project, creating a “double allocation” of funds.

When pressed for details on the amount of IMF money allocated, government officials reportedly declined to comment, citing instructions from the President’s office.

“Zimbabwe received SDR allocations from the IMF in 2021. The government did allocate part of these to infrastructure, and a portion of the SDRs was directed to the Mbudzi project.

“The project therefore received a double allocation; a loan of US$88 million plus huge interest that you, the taxpayer, are expected to repay, and funds from the IMF’s Special Drawing Rights,” he stated.

Sources within the Ministry of Finance, according to Chin’ono, suggested that the IMF money was intended to service the Fossil Mines loan, a justification that has been met with incredulity, with one official reportedly stating, “Ndokudya kunoitwa nevakuru” (“That’s how the powerful eat” or “That’s how the elites benefit”), implying corruption.

Furthermore, allegations have surfaced regarding inflated land compensation values, with properties reportedly valued at US$100,000 being acquired for US$500,000, allegedly in exchange for kickbacks.

Chin’ono said Mnangagwa hoped that the “misplaced excitement” about Trabablas project would prevent the public from realizing how millions of dollars, which should have been allocated to vital public services like hospitals, schools, and clean drinking water, were instead allegedly looted through the interchange project.

“In a country with only one terrestrial television station, where journalists are jailed without trial for exposing corruption, it is no surprise that Mnangagwa believed he could excite Zimbabweans with an interchange—hoping that such misplaced excitement would distract citizens from realising how the same misnamed project was used to loot public money (millions of dollars) meant for hospitals, schools, and clean drinking water,” he stated.

Exiled former cabinet Minister Jonathan Moyo has, however, praised the project as a “giant milestone”.

“A GIANT MILESTONE: As malcontents continue to peddle competing amounts on what they claim is its cost between US$88 million and US$100 million – depending on the time of the day or the audience they’re targeting; and while they fall on each other, acting like forensic engineers, to spotlight its alleged structural or retrofit faults; the Trabablas Interchange in Harare commissioned yesterday is indubitably a giant milestone in the development of not just Harare but of the country itself; whose utility and benefit to the public cannot be ignored or over stated.

“More of the same across the country – leaving no city behind – would be great for Zimbabwe,’ Moyo posted on his X handle.