SA firm in $400m Harare roads deal

Harare - South African company NEO Capital is reportedly set to partner Harare City Council in a $400m deal to rehabilitate and maintain roads in the Zimbabwean capital.

Neo Capital is part of the Neo Africa Group, a South African conglomerate involved in a range of industry sectors from telecommunications, energy to public sector partnerships.

According to The Herald, NEO Capital is expected to raise funding for the project against a 30-year concession at repayment of $15m per year.

This means the city will pay back $450m, translating to a $50m return to NEO Capital at about $1.67m per annum.Harare City Council has proposed the formation of the Harare Roads Development Company in which council would hold 51% and NEO Capital 49%.

The city’s environmental management committee has approved the proposal and tasked Town Clerk Dr Tendai Mahachi to conclude negotiations with NEO Capital.

Mahachi is expected to sign an agreement by December 31.