Zambia Railways Secures €50 Million EU Funding to Rehabilitate Key Mining and Freight Rail Lines
Zambia Railways Limited has secured a €50 million grant from the European Union to rehabilitate critical sections of the country’s rail network, including the line from Livingstone to Kapiri Mposhi and onward to Ndola.
The funding represents the first phase of a broader modernization program, with the European Union already signaling its willingness to support a second phase of rehabilitation works aimed at strengthening Zambia’s freight and mining logistics capacity.
Managing Director Cuthbert Malindi said the grant forms part of the company’s 2024–2028 strategic business plan, which targets the full restoration of the rail corridor.
The total cost of rehabilitating the entire line is estimated at $113 million, with the remaining funding expected to be mobilized through private sector partners and development finance institutions.
Focus on Mining Corridor Efficiency
Malindi explained that the grant has two primary objectives: reducing temporary speed restrictions along the Livingstone–Kapiri section and rehabilitating the Kapiri–Ndola segment, a vital freight route serving Zambia’s mining industry and one of the railway’s most profitable corridors.
The Kapiri–Ndola line is particularly significant for transporting copper and mining inputs between production centers and export routes, making it central to Zambia’s efforts to improve logistics efficiency and reduce transportation costs.
According to Malindi, successful implementation of the first phase could unlock between $500 million and $700 million in additional investment from institutions such as the European Investment Bank and other cooperating partners.
Rolling Stock Upgrades Under Vendor Financing
In addition to track rehabilitation, Zambia Railways is upgrading its locomotive fleet. Malindi confirmed that six locomotives will be remanufactured under a vendor-financing agreement with the Worldwide Rail and Mining Company.
The first two locomotives are expected to be delivered in May, with all six scheduled to be operational by December.
These upgrades are expected to improve reliability, increase hauling capacity, and support growing freight demand from the mining sector.
Rail Investment Seen as Key to Economic Growth
Malindi emphasized that expanding rail infrastructure could deliver significant economic benefits for Zambia, particularly by reducing the heavy reliance on road transport. Currently, an estimated 90% of freight in the country is transported by road, placing strain on highways and increasing logistics costs for businesses.
He described rail transport as a transformative investment capable of improving trade efficiency, lowering infrastructure maintenance costs, and supporting long-term economic growth.
Government authorities have expressed strong support for the railway modernization program, viewing it as a critical component of Zambia’s broader strategy to strengthen supply chains, enhance mining exports, and drive industrial development.
