Zambia Injects K100 Million into Rail Modernisation to Cut Transport Costs and Boost Regional Competitiveness
Zambia has taken a significant step toward modernising its transport and logistics infrastructure with the release of K100 million to Zambia Railways Limited (ZRL), marking the start of a long-term recapitalisation programme designed to reduce transport costs, improve trade competitiveness and support economic transformation.
In a comprehensive statement, Minister of Finance and National Planning Dr. Situmbeko Musokotwane explained that the investment forms part of the Government’s wider agenda to dismantle structural barriers that have hindered economic growth for decades—particularly the high cost of transporting bulk cargo across long distances.
The recapitalisation funding, released in November 2025, is complemented by more than €50 million from the European Union’s Railway Sector Support Programme.
The EU contribution will finance key improvements including track rehabilitation, modern signalling systems, and upgraded telecommunications along critical sections of the main railway line.
Dr. Musokotwane said the combination of domestic resources and international support is expected to shift Zambia Railways “from survival to transformation.” This aligns with the Eighth National Development Plan and the 2026 National Budget, both of which prioritise modern, integrated logistics systems as enablers of export growth, industrialisation and job creation.
For many years, ZRL has faced operational challenges due to ageing locomotives, outdated wagons, limited passenger coaches, obsolete signalling infrastructure and deteriorated track conditions.
These constraints have slowed train operations, reduced reliability and forced freight shippers to rely heavily on already congested road networks.
The new investment package is intended to address these long-standing deficiencies.
Upgrades will be most visible along the traditional line of rail, stretching from the Copperbelt through Central and Lusaka Provinces into Southern Province.
Enhanced freight capacity is expected to reduce transport costs for mining firms moving copper and other minerals to regional ports, complementing ongoing developments along the Lobito Corridor.
Agricultural producers will also benefit, gaining more predictable and efficient logistics for commodities such as maize, sugar, horticultural goods and livestock.
Industrial hubs in Ndola, Kitwe, Kabwe, Kafue and Lusaka will enjoy more efficient transport routes for both raw materials and finished products. Livingstone—Zambia’s tourism gateway—is set to see improvements in both passenger and freight services.
The revitalisation of ZRL is projected to strengthen Zambia’s competitiveness across regional trade corridors, enhancing commercial links with Zimbabwe, Botswana, Namibia and South Africa while reinforcing the country’s strategic role in the North–South and Lobito Corridors.
Beyond transport efficiency, the minister highlighted the wider economic benefits expected to emerge along the line of rail. These include new opportunities in warehousing, logistics operations, cold-chain management and light manufacturing.
The programme will also create opportunities for local contractors in civil works, track maintenance, equipment servicing and other support services, contributing to job creation and SME development.
The Government has pledged strong governance, commercial discipline and measurable performance benchmarks in the management of both the recapitalisation funds and EU support.
ZRL will be required to strengthen collaboration with the private sector, particularly mining companies and agricultural producers, and to explore public–private partnerships to sustain long-term growth.
Dr. Musokotwane underscored that the overarching objective is to build a modern and efficient logistics backbone that lowers the cost of doing business and positions Zambia as a competitive, land-linked transit hub for Southern and Central Africa.
“By investing today in Zambia Railways, we are lowering the cost of doing business tomorrow and opening new markets for our citizens,” he said.
