EU Invests €50 Million to Upgrade Zambia Railways, Boost Trade and Economic Growth
Zambia’s plans to modernize its aging railway network have received a major boost after the European Union approved a €50 million grant for Zambia Railways Limited (ZRL).
The funding will support the rehabilitation of key track sections and the upgrading of signalling and telecommunications systems, marking one of the largest direct investments in Zambia’s rail infrastructure in recent years.
The grant was formally signed at a ceremony in Lusaka attended by senior officials, including EU Commissioner for International Partnerships Jozef Síkela, Zambia’s Minister of Transport and Logistics Frank Tayali, ZRL Managing Director Cuthbert Malindi, and EU Ambassador to Zambia Karolina Stasiak.
According to ZRL, the investment will initially focus on critical sections of the main line between Livingstone and Ndola, a corridor central to Zambia’s economic activity and freight movement.
The railway, managed by the state-owned Industrial Development Corporation (IDC), has suffered from decades of underinvestment, resulting in slow speeds, reliability issues, and declining freight volumes, according to Transport & Logistics Zambia.
EU Commissioner Síkela stated that the funding reflects the EU’s commitment to supporting sustainable transport systems, emphasizing that modern rail infrastructure helps reduce transport costs, cut congestion, and lower greenhouse gas emissions.
This project is part of the broader “Team Europe” initiative, through which more than €200 million is being invested in Zambia’s industrial and transport development under the EU’s Global Gateway strategy.
The Zambian government welcomed the decision. Minister Tayali highlighted that an upgraded rail network is essential to achieving the country’s goal of producing three million tonnes of copper annually by 2031.
He also noted the railway’s role in strengthening the Lobito Corridor, which provides a shorter and more efficient export route to the Atlantic Ocean.
ZRL stated that the upgrades will improve safety, speed, and reliability, while supporting future private-sector participation through open-access rail operations.
The enhancements are expected to benefit key sectors such as mining and agriculture, while bolstering regional trade linkages.
The grant represents a significant milestone for Zambia Railways, which has long sought capital to modernize its mainline and align the network with regional economic ambitions. Work will commence once engineering assessments and procurement processes are completed.
